With a rise in property prices, sales transactions and both local and foreign demand, there has never been a better time to purchase a property on Spain’s Costa del Sol. Here is a brief run through of the latest statistics that contribute to a flourishing property market in the region and an opportune moment to invest in a property on the Costa del Sol today:
Rise in optimism
The powerful recovery of the Spanish property market is due in part to a significant increase in optimism and confidence amongst investors, property experts and Spanish lending institutions, all of which have contributed to the sweeping sentiment that the market conditions have improved and will continue to moving forwards.
Positive news headlines have attracted new buyers to the region, a surge in new developments as well as an incredible array of new internet resources, including mobile applications, guidebooks and niche expertise services available to the prospective buyer, such as tailored viewing trips and expert assistance in a range of languages.
Strong foreign demand
With a renewed surge in international attention, including features in popular property broadcasts in the UK like ‘A Place in the Sun’ and serious interest from the wider European, Russian, Arabic and Chinese markets, foreign demand for property in Spain rose by 15.6% in the first quarter of 2017, according to a report by the Spanish Land Registrars Association. Foreign interest in the Spanish property market, particularly in popular coastal regions such as the Costa del Sol has significantly contributed to both the recovery of the market in the region and its continued allure to prospective buyers globally.
Pre-crisis levels of sales translations
The Spanish property market continues to gain momentum as new government statistics show sales figures rose by nearly 30 per cent in March. A total of 40,461 homes were sold in March 2017, the highest monthly figure reported since February 2011, marking a return to pre-crash levels from 2008 and year-on-year increases in all of Spain’s 17 regions.
The cumulative sales total for the first three months of 2017 now stands at 111,528, a healthy 15 per cent higher than at the same point in 2016. The running 12-monthly total has now reached 419,000, also an encouraging 15.1% higher than a year ago.
Greater access to funding
Spanish banks have resumed lending to foreign clients with significant discounts on quality properties across the Costa del Sol due to enhanced market morale. Mortgage for residential property in Spain appears to have achieved a level of stability and gradual month by month growth in all 17 regions. Driven by increased activity in the Spanish property market over the last 18 months, analysts believe the record low level of the Euro Interbank Offered Rate, or Euribor, could be prolonged for at least another two years and fixed rate mortgages could continue to grow in popularity in Spain.
With consistent levels of sales transactions in the region and ever increasing demand, the number of budget and re-possessed properties is depleting and becoming increasingly difficult to replace. This will have the natural effect of rising property prices as confident sellers hold out for higher premiums. An annual price rise of 7.74% has been recorded across Spain by the Spanish Land Registry, the highest rise since 2007.