Spain: Property Prices and Sales on the Rise
The Spanish property market is showing a robust new life according to analysis for the first three months of 2019. PropertyWire reports that Lucas Fox data shows the markets in Barcelona, Madrid, Valencia, Costa Brava and Girona more than tripled when compared to the same three month period in 2018. Average prices are reported to have increased by 9% to €997,675 and new development transactions more than six times compared to 2018.
Knight Frank reports:
'Spain’s recovery continues with Malaga, Madrid, Barcelona and Valencia all recording
annual growth above 5%. Despite a weaker growth forecast for the Eurozone, Spain’s
unemployment and household debt continues to drift lower and supply remains low by
So who are the buyers?
Lucas Fox reports that international buyers account for almost three quarters of all property transactions for the first three months of 2019. American buyers accounted for 15% sales along with British buyers at 12% for property in Barcelona. Buyers from Middle East countries accounted for 14% of the buyers in the Barcelona market.
For property in the €900,000 or more price range one quarter of the buyers were domestic with 15% from the United Kingdom, 8% from the United States and 23% from the European Union.
Lucas Fox co-founder Alexander Vaughan tells PropertyWire:
‘Barcelona offers much more than a traditional resort location or indeed major city. It appeals to a younger, affluent buyer for a myriad of reasons from its scores of Michelin starred restaurants to its growing reputation as a FinTech hub.'
‘We’ve definitely seen an increase in enquiries and offers for prime properties since the middle of 2018 and so far 2019 is looking very positive. The two very encouraging signs are that Catalan Family Offices are starting to invest in residential property and the number of major international companies that are establishing operations is increasing.’
Lucas Fox Barcelona analysis shows rentals were up by 10% year on year as a result of changing demographics in the city. The average price per month for rentals is now averaging at €2,294.
Rentals manager Wim Braem for Fox Lucas says the reason is the new influx are the leading tech companies and startups attracting new younger workers. With the presence of Amazon and Facebook the need for new quality rentals is rising.
For the city of Barcelona an increase of 1.5% for property prices by the end of March 2019 compares to 6% nationally for Spain. Per square metre rates for Barcelona are now at €4,217 and for Spain the average is at €1,703 with these numbers based on asking prices for sales.
Spain’s Institute of Statistics (INE) says the number of sales for new homes in Barcelona for the first two months of 2019 were up by 18% compared to the same time in 2018.
Madrid, Costa Brava, Girona and Valencia have seen sales remain active with 22% of the buyers being from Britain.
Tom Maidment, Lucas Fox Costa Brava and Girona partner:
‘The positive market trend we saw in 2018 has continued in 2019, reflected in some excellent Q1 results in both Girona and the Costa Brava.’
‘The volume of closed sales rose by 13% with local buyers accounting for a third of sales and French and British buyers each accounting for just under a quarter of all sales. With a very healthy pipeline of business, we expect the year to continue ona positive upward trend.’