Word on the Spanish streets are starting to buzz with excitement again, as good news surrounding the Spanish Property Market is once more budding to life. All along the Costa del Sol there are reasons to be cheerful and hopeful that things in the property market in Spain along with popular areas such as Marbella, are starting to become more prominent.
This couldn’t be better news now for anyone wanting to buy a property here on the Costa del Sol, as not only are house prices hitting an all-time low in 7 years but with Spain’s economy improving at a significant rate, unemployment is down and tax revenue is growing. There is also a more stable banking system, as the government is making sure past mistakes are not repeated.
Buying a house in Spain means lower mortgage rates
Therefore lending figures are on the rise according to recent property data, with a lower lending mortgage rate now having dropped from 4.21% to 3.29% in 2014. This has only helped to boost confidence with buyers looking for Spanish properties; a significant percentage of them being foreign investors.
Capital flows seen in Madrid and Barcelona are the most prevalent, where commercial markets topped €2.7 billion in 2014. This will extend and trickle out to other areas of Spain in the coming years as well.
Marbella in particular, an already popular area with oversea buyers has begun working again on a recovery that began in 2013. Marbella and its surrounding areas of Estepona and Benahavis have already recorded a 27.7% increase in property sales in 2014 compared with the previous year. It also outperformed both by a leap in property sales of 89% between 2008 and 2014, says Spain’s Ministry of Public Works.
The market has also seen a healthy demand from a diverse client base of French, Scandinavian, Arabian Benelux and Moroccan buyers, which has opened up to an expansion in the property game. This coupled with a record number of tourists has only increased an influx in the local economy.
Spanish property spends less time on the market
There is also revelation about the amount of time properties are spending on the market, and how they seem to be dropping; especially if the properties are realistically priced. On some beachfront areas it has been seen that a shortage of homes is now the norm and waiting lists are now being drawn up to meet the high demand. The analysis also states that new bank repossessions still remain and has evoked the return of new construction; however, the main focus at the moment is with individual villas and small to medium sized developments of apartments and villa communities.
The latest Spanish property market index from Kyero, for the first quarter of 2015 says that 71% of real estate agents feel more confident now than they did just a year ago. This only goes hand in hand with the general feeling, statistics and growth of the market and the economy being a significant factor here.
The UK is once again seeing the possibilities of buying property on the Costa del Sol
A stronger Sterling is also seen to be responsible for the most notable shift in the Spanish property market with 30% of English speaking agents stating this. Also some 56% of Spanish speaking agents and 57% of English speaking agents have said that sales have increased. Both Spanish and English speaking agents have stated a 59 – 64% rise in buyers from overseas.
In the past days, data published by the INE (Instituto Nacional de Edatistica) brings with it more good news for people selling their property in Spain. Figures taken from the land registry shows a definite increase in the number of properties sold for the month of January. For homes registered as dwellings, the figures showed an increase of 9.6% compared to those in January 2014.
Most regions saw a notable increase but it was the traditional areas for second homes and overseas buyers once again that had the highest performance. The Canaries were up 56.7%, along with the Balearics at 4.9% and Andalucia 6.7% were just some of the new figures to be shown so far. Andalucia was also leading the way on house sales at 11,046 units, according to new sales registered at land registry for dwellings.
Now is the time to buy property in Spain
This really is great news for home buyers abroad, people looking to invest once more in the Spanish market and great news for Spain in general. With 22% of mortgages on the rise in the year so far. So for buyers in Spain who have waited for the crisis to be over and for the bottom of the market to be reached, it is fair to say to that 2015 will increasingly become one of the best times to do this. The house prices will start to rise slowly but exchange rates for buyers outside of the Euro are at the highest they have been in many years. Mortgage availability is also stronger that it has been for some time and interest rates have dropped in 2014.
Everyone is in agreement that this year is the year for the recovery of the Spanish property Market which is welcome news for all invested in it and wanting to be a part of it.
Now is the time…
