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.

Mortgage Approvals on the Rise 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.