Property Prices in Spain Surpassing Euro zone Averages
According to the latest statistics from the Eurostat department house prices in Spain are increasing faster than any other region in the EU.
The is great news for foreign buyers looking to capitalise on their monies by investing in Spain. Taking advantage of Off Plan properties right now is a must due to the lower than market value prices you see for resale properties meaning greater long term profits to be made if investing in Spain now.
In Q2 of 2016 until Q2 of 2017, property prices rose by 5.6% in Spain compared to 3.8% for the rest of Europe. Spain has had a very delightful 12 months with property rises on the rise, properties selling at a rate of knots and more leniency with Spanish mortgage applications getting granted. The amount of mortgages applied for this August was 10% higher than in 2016 with an average amount of loan being €117,878.
Historically August is a quieter month for property sales in Spain due to the tourism boom for the summer, however this August Spanish property sales rose by over 17% compared to the previous year according to Spanish Notaries.
We have only one outcome to all this positive news about properties in Spain. The confidence has returned to the property market with overseas investors snapping up properties in good locations, off plan being sold as a great investment opportunity and developers are again coming to Spain to build (with licenses supported by the Spanish Government). First time overseas buyers are happy to buy property in Spain due to the safe policies that are in place now on off plan properties, strong economic stance and rising house prices.
We can see from enquires one year ago to this year that so many people feel confident again in Spain, by the end of this year we can see Spain taking the top spot for the best place to invest in overseas properties.
For more information about buying off plan properties in Spain, property mortgages or how to invest in property in Spain then please do drop us a line or email a specialist on email@example.com
According to a recent report by building giant Taylor Wimpey, Marbella and Mijas are in the top 3 locations for the British and Irish to buy a second home. Whether that be for holiday rentals or just a place to frequently get away from the rat race.
Marbella and Mijas are both in the Malaga Province so with the abundance of flights available from the UK and Ireland you can see why these two are top of the tree for properties being sold in Spain. The flights don’t disappear when the summer season is over like many other top destinations across Europe, in fact winter in Marbella is perfect for tourist and people wanting to live away from the icy temperatures of the UK and Ireland.
Over the last 12 months we have seen a huge increase in the amount of British and Irish wanting to call Marbella and Mijas a home and a more permanent place to take a break. Marbella has been a holiday hotspot for years now and with attractions always getting added, more international flare arriving you can see the only way is up for Marbella and its surrounding neighbours of Mijas and Estepona.
Over 6 million Spanish residents also own a second home in Spain with more than 3.6 million of those properties being located on the coast. Many use themselves with friends and family but most purchase a home in Marbella and surrounding areas so that they can rent them out according to a local property portal.
New figures from the Ministry of Employment show that the amount of people that are registered as unemployed has dropped by 8.3% over the last 12 months in Spain.
The only increase that was recorded was the month of September when seasonal jobs come to an end and levels rise slightly once again. Even with September seeing a rise, year on year September has been the lowest recorded since 2008.
The increase for September was the highest in the Balearic Islands and naturally with the islands having a very strict season for tourists then winter months many establishments close causing these mentioned highs in unemployment. This is compared to the mainland and specifically Marbella and Estepona that continue to have tourism throughout the winter months. With temperatures still recording at over 25 degree each day and bearing in mind we are still in October, you can see why tourist levels stay very active on the Costa del Sol.
Throughout the past 12 months we have seen over 310,000 people that were registered as unemployed finding employment which is a very positive signal of a growing economy.
Housing Market on the Rise according to Bank of Spain
The Bank of Spain has opened its door to give us a look at the quarterly review of the property market.
Recently the Bank of Spain published data on the current Spanish housing market.
In some areas the prices of property fell by as much as 45% from the boom time. After a good few years of ‘getting back on track’ the property market has started to rise again but at much more of a gradual incline rather than sudden boosts. Since 2014 the process of property have risen by over 16%, all according to the Bank of Spain.
With all this in mind and the steady growth continuing to be a trend we have seen a huge amount of foreign buyers primarily looking to buy property in Marbella and Estepona. Foreign buyers has increased by over 17% and with a strong economy and a rampant job market then who can blame people from investing in Marbella and Estepona.
Experts forecast upward trends to continue over 2018 and beyond meaning now is the time to buy. Mortgages are becoming more readily available to foreign buyers and more importantly the Spanish banks are lending responsibly.
Finally, the property market in Spain continues to look strong however the amount of construction will need to increase due to the high demand of interest in purchasing property in Spain.
Mortgage Approvals on the Rise in Spain
The amount of people interested in taking a mortgage in Spain has risen in all 17 regions in July. This news comes after a huge rise in property sales according to the central statistics unit.
In July 2017 sales of property in Spain rose by 16.8% so it’s no surprise that the amount of mortgage applications and approvals has also risen. Mortgage approvals rose by 32.9% giving 24,863 mortgages compared to the same month the previous year.
Many things have led to the amount of mortgages taken or wanting to be taken with a significant increase in the amount of jobs being created. Economic growth is greater and things have settled down enough for investors to start buying up great properties in and around Marbella and Estepona. Never far behind are people from the UK and Ireland wanting to grab that perfect forever holiday home.
Andalucía had the highest home mortgages granted with 4577 followed by Madrid with 4379 approved, all in July. This gives great confidence for buyers to make the move and with an easier route to mortgage for foreign buyers; now really is the time to buy a property in Marbella.
Mortgage activity grew by over 10% as an average for the first seven months of the year, this was comparing to the same time period of last year. If you look at a full 12 months to date then the average is over 12% higher than the previous 12 months period.
For any mortgage information or information on buying a property in Marbella or Estepona then please feel free to pop into our office or call one of our friendly client advisors that can help with any part of your potential move to Spain.
“Better way of life” – Come to Spain
According to a new expat survey; Spain comes out in top place for British expats seeking a “Better way of life”.
This survey was one of the biggest ever to be carried out with over 12,500 people from 166 nationalities and over an incredible 188 countries.
The main reason for British to make the decision to become an expat by moving to Spain is the quality of life. Lower cost of living, almost all year sunshine, manana lifestyle have all helped Spain to be in the top 10 for ‘Quality of Life’ Index for 4 years in a row and secured 3rd this year.
We have found that expats from the UK are more likely to move closer to ‘home’ than go much further afield. One main point that people moving overseas have to get to grips with is the distance from family and friends however, with budget airlines offering amazing flights to many European destinations with very low prices everywhere becomes closer and closer.
21% of British that moved to Spain are for retiring purposes and 24% of all British in Spain are retired. When looking at average ages of expats living in Spain you may be surprised to learn that the British is 48.7 years old compared to a global average of 43.5 years.
Before taking the move to Sunny Spain 68% of all British thinking of moving said the cost of living as the main benefit with 82% saying that once they moved the cost of living was excellent. With these figures in mind you should not be surprised to see that Spain came in the top 10 for the ‘Cost of Living’ index for 2017. The cost of living is said to be approximately 20% less than the UK, renting a property over 38% less and food shopping over 17% less. This is great news for anyone from the UK looking to retire in the Costa del Sol who will be living on pensions and saving. Finally, 9 out of 10 expats said that they were satisfied with the lives in Spain.
Would you like more information about moving to Spain, the cost of living in Spain or how to get a mortgage in Spain? Speak to someone from then UK that has made the move already: contact firstname.lastname@example.org for an unbiased view.
Over supply of Property Crash properties running out
The vast amount of properties that were left standing still in development or unsold looks to be clearing up with the final stocks running out.
The majority of stock could run out in some of the main locations across Spain including Madrid, Barcelona, the Balearics, the Canary Islands and the Malaga region shortly. The consultancy firm RR de Acuna y Asociados believe the stocks may be gone in as little as 3 years.
Prior to the huge property boom of 2004, we had around 400,000 properties for sale across Spain as a whole. When 2010 came around and we started to look back at the monstrous property crash the amount of properties available was 1,700,000.
As previously reported by Absolute Marbella, Spain’s property market has grabbed the bull by the horns and recorded an astonishing come back with huge growth in house sales. Construction is underway across Spain and particularly the Costa del Sol including the Marbella and Estepona areas. Once again off plan property is selling like hot cakes as new legislation’s that are in place secure a buyer from the unfortunate downfalls that happened in the crash. Buyers interested in purchasing in Costa del Sol can now buy with the peace of mind that there money will be safe and still benefiting from the appeal of off plan property.
With 1.3 million houses only for sale across Spain you can see the big hole that has been made in the overall figures from 2010. The firm identifies this trend as a hugely positive sign for future buyers in Spain and is even estimating that the natural reduction in properties unsold be around 907k by 2019 with almost 350,000 being new builds.