15.7% Rise in Coastal Property Prices

September proved to be a valuable month for Spanish property prices; Spain’s recovery plan continues to be on the right tracks with the average property price increase of 4.8%.

According to the valuation company Tinsa, property prices gained in all sectors with 7.3% in larger cities and capitals and a fantastic 4.7% on the coastal areas.
Albeit the price of property is still considerably lower than the boom time at 35.7% lower, the prices have increased by 12.1% since the global crash. This is great news for people looking to invest in property in Spain or searching for your retirement home or holiday home in Spain. In just over 3 years the property prices in coastal regions have increased by 15.7% giving great news for the investor.

This year 2018 has yet again seen record numbers of tourists flock to the Costa del Sol aiding the property recovery and showing investors and overseas buyers which locations to take advantage of on the coast. Marbella and surrounding areas has been a mecca for investors due to the hugely popular rental market. These areas can only continue to benefit in all aspects from tourism to the increase in property prices and rental prices.

Other news from the valuation firm that shows the extent and the solidity of the property recovery and economy in general in Spain is that property sales has risen by 18”% year in year. New off plan building licenses that have proves to difficult to get or even pass in previous years have grown by 46.2% year on year, this is a remarkable figure and again adds to the strong investment market for buyers of off plan properties in the coastal areas surrounding Marbella. Final figures from Tinsa also show that mortgage application that have been successful have also risen by 17% year on year showing that banks in Spain are becoming stronger and more satisfied to lend property buyers money again.

Unemployment in Spain has also decreased again year on year by almost 6.1%.

After reviewing the data provided by Tinsa, we have established that the recovery of the Spanish property market shows no sign at all of slowing down. We can confirm that we have a strong enough demand for properties in the off plan new build sector due to second hand older properties drying up, with property prices still on the rise but at more of a sensible rate than pre boom we can still see confidence from buyers and investors.

Over supply of Property Crash properties running out

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.