Spain's Property Market Recovery Is Well Underway

By
Services for Real Estate Pros with Cancasa

Recently published data proves that the property market in Spain is on the way to recovery with prices going back into positive territory. Data from the Spanish Land Registrars's Association shows that prices went up over 9 percent in the first quarter. The official government index reflects valuations of just over 2.5 percent.

During the month of March, the index went up by 0.4 percent according to the Association of Spanish Notaires. 
Numbers from the month of April show growth of nearly 5.5 percent from the Tinsa valuations company.

Prices bottomed out in late 2014, but the registrar's data now shows that prices have risen over 25 percent since then. 
They are still down by 18 percent from their peak back in 2007.

Tinsa breaks down figures more to show that prices increased in the major cities by 8.7 percent in April year over year. Prices in the Canary Islands and the Balearics went up by 5.6 percent but Mediterranean coast prices were only up by 0.3 percent.

A partner at Lupain says that the national indices do not reveal anything about local markets. He says that they do give everyone an idea of where the property market cycle is at. 
Spanish houses are back in the positive territory, however, no matter what index you refer to.

Idealista, a popular Spanish property website, shows Valencia properties are less than half that of Madrid or Barcelona. 
The market in Spain's third city is growing.

Transactions for the first four months of the year 2018 rose 20 percent over the same timeframe from 2017. 
Spain's National Institute of Statistics or INE shows data that indicates a similar trend with home sales of  the first four months of the year. This is up by 17 percent compared to 2017 during the same period.

In Valencia, prices in 2017 overall were higher by 13 percent year on year. The region's foreign buyers report which include El Pla de Real and Eixample, had prices go up 13 percent and 10 percent.

Lucas Fox's Valencia information shows how foreign buyer purchases have increased by 10 percent in the first quarter of 2017. This year, that number was 33 percent. The figures Lucas Fox has also show that almost 60 percent of buyers were purchasing homes as primary residences in Valencia. 
Only 25 percent were investing in second homes and 8 percent as straight investments.

A partner of Lucas Fox Valencia, Juan Luis Herrero states that the city has all the amenities and conveniences anyone would expect from Spain's third city. But, its smaller size appeals to those from the foreign market. Families also like the northeast beaches where there are plenty of townhomes and apartments with communal pools and playgrounds.

Herrero also pointed out that the area is a thriving hub for innovation and businesses. It is home to big companies like BP, Ford, Mercadona, and Caixabank. This seals the city's destiny, he believes, as one day being as globally familliar as Barcelona or Madrid.

One other sign of property recovery in Valencia is the many cranes that are hanging over the city. New homes are always in demand with a 5 percent rise in Valencia of the number of new home sales in 2017 compared to the year before.

Herrero concludes with additional observations that the property recovery has been slower in Valencia than in Madrid or Barcelona, but there is going to be a noticeable change in the market's pace in the coming years because of the demand for new homes.

Posted by

Peter Spain

After following the property sector for several years especially in Spain , I came to understand the cycles and all the attendant peaks and troughs that come with it.
I now focus my efforts on helping established local agents with their online presence. Agencies such as Lupain along with others, are benefitting from the attention to detail and meticulous research that I provide which forms part of the marketing strategy.

I also provide more exposure on Realty Times where I offer similar quality articles about the Spanish property market.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
153,732
Melissa Polce
ERA, Wilkinson Real Estate Charlotte - Huntersville, NC
Lake to Land, I've Got It Covered!

I just wonder how many of these foreign buyers were from the U.S...especially with all the unease in this administration- I am looking at The Bahamas for 2020-2024...great article!

Jul 25, 2018 04:50 AM #1
Rainmaker
21,510
Peter Spain
Cancasa - Punta Cana, DR

Thanks Melissa, I had to switch over to Firefox to reply to your comment because Chrome seems to block comments on my end.

Yes, there are many US citizens making alternative arrangements for the future and Spain seems to be a popular destination. I know Mexico is popular but some like to have that European feel to life and Spain offers fabulous culture and lifestyle. Bahamas is nice and I met some people there who even spoke several dialects from Africa.

Jul 25, 2018 04:59 AM #2
Rainmaker
1,515,887
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Welcome to Active Rain and congrats on your first blog post. This is a great place to meet and interact with awesome professionals.

Jul 25, 2018 05:47 AM #3
Rainmaker
3,824,714
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Peter, nice to hear how the market is doing in Spain, and just had clients over there, but for vacation.  Welcome to ActiveRain.

Jul 25, 2018 07:10 AM #4
Ambassador
1,481,198
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Thank you for sharing this.  It's most informative for buyers and sellers!

Jul 25, 2018 07:31 AM #5
Rainmaker
2,539,346
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Jul 25, 2018 02:50 PM #7
Rainmaker
1,515,887
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Welcome to Active Rain and congrats on your first blog post. This is a great place to meet and interact with awesome professionals Peter Spain

Jul 25, 2018 06:51 PM #8
Rainmaker
21,510
Peter Spain
Cancasa - Punta Cana, DR

I've beem messaging support on this site but nobody responds.

Is there anyone working on this site that responds to emails?

I used a link labeled Contact Support but it looks counter productive when emails aren't replied to. Major disappointment after all the initial euphoria for this site. Such a shame really.

Jul 26, 2018 12:53 PM #9
Rainmaker
1,420,010
Bob "RealMan" Timm
Tivoli Custom Homes - Minot, ND
Bob Timm, Project Coordinator for Tivoli Homes

Thanks for the report Peter Spain and welcome to Active Rain.

Jul 26, 2018 01:52 PM #10
Rainmaker
21,510
Peter Spain
Cancasa - Punta Cana, DR

I've reported the spam comment above, let's hope someone takes the initiative and removes it.

Jul 27, 2018 02:12 AM #12
Ambassador
3,781,919
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Welcome, Peter! Congrats on your first post and on starting to participate with others. Writing posts and commenting are a great way for others to get to know you. And following people who interest you and you feel you can learn from is a good thing to do.

And yes, it makes sense to report the spam - it does get removed although not right away.

Jeff

Jul 27, 2018 03:27 PM #13
Ambassador
3,615,051
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Peter Spain welcome to ActiveRain and congratulations on successfully posting your first blog.

Jul 28, 2018 04:11 PM #14
Ambassador
3,722,048
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Sep 16, 2018 09:22 PM #15
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
21,510

Peter Spain

Ask me a question
*
*
*
*
Spam prevention