The Spanish real estate market beaten sales records in 2018. Malaga is a benchmark for investors
The highest figure in the Spanish residential market in a decade. Malaga and the Costa del Sol have registered a continuous and growing demand for housing since 2015. This has contributed to the foreign tourist seeking to spend increasingly longer periods in Spain, in addition to tourist houses as an investment in the short and medium term.
Transactions exceeded half a million units. According to the National Statistics Institute (INE), whose data come from the registrars, they have closed 508,402 transactions a year.
The Spanish autonomous regions with the highest number of home sales registered in the third quarter were Andalucía (26,362), where Malaga is located, Cataluña (20,771), Comunidad Valenciana (20,182) and Comunidad de Madrid (20,048). In nine have fallen over the previous quarter, compared to increases in eight of them. The greatest reductions were recorded in La Rioja (-10.08%), the Canary Islands (-9.50%) and Aragon (-4.61%).
In year-on-year terms, there have been more than 500,000 home sales, recording 508,402 in the last twelve months, a figure that had not been reached since 2008. 87,703 corresponded to new housing, reaching the highest year-on-year result in the last thirteen quarters. In second-hand homes, 420,699 sales were recorded, the highest amount since 2007. The year-on-year increase was 14.06%, with 13.15% in new housing and 14.25% in used housing.
The provinces with the highest number of sales in the third quarter of 2018 were Madrid (20,048), Barcelona (14,217), Alicante (9,828), Malaga (8,368) and Valencia (8,073). The greatest increases in sales compared to the second quarter of the year were achieved in León (21.72%), Cuenca (16.56%), Asturias (15.84%) and Almería (13.31%). Twenty-eight provinces presented an increase in home sales with respect to the previous quarter, compared with decreases in twenty-two provinces.
The provinces with the highest number of new home sales were Madrid (4,447), Barcelona (1,860), Alicante (1,612) and Malaga (1,596), giving rise to twenty-eight of them with quarterly increases. On the contrary, resale property, thirty provinces have registered inter-quarterly decreases, recording the highest number of sales in Madrid (15,601), Barcelona (12,357), Alicante (8,216), Malaga (6,772) and Valencia (7,165).
Both the capital city of Malaga and the Costa del Sol have experienced this continuous and growing demand for housing since 2015. The impulse of foreign tourists, who are looking to spend longer periods in Spain, in addition to the tourist flats as a short and medium-term investment, have contributed greatly to the demand.
The Costa del Sol is a reference point for the coastal market and specifically, Malaga is the spearhead for the investor because it is a location that has all the services: high-speed train AVE, Malaga Airport with international regular flights and low-cost tickets, seaport, also the Malaga cultural and gastronomic offer meets all the requirements for Spaniards and foreigners to enjoy in this town.
There are three types of investor: the institutional investor, the small investor and the domestic investor, who buys a property as an investment.
Residential renting also contributes to the rise of this market, as much of the foreign demand first rents and then buys. And tourist renting, “where profitability can reach 10 or 12% and has as much interest as renting in the main capitals of Madrid and Barcelona,” says Rodriguez. The new coastal market offers clients the opportunity to rent their second home, perfectly combining the enjoyment of this with a good investment been Malaga one of the best choices.
England is still the biggest market but also Belgium, Sweden, Germany and France stand out. It is a destination that covers the desires and needs of these clients, who are looking for good weather, beaches, golf courses, walking distance restaurants, and good infrastructures and services for families, couples or even single.
The graph below shows the market share of home sales by Spanish autonomous regions, headed by Andalusia (19.78%), Catalonia (15.58%), Valencia (15.14%) and Madrid (15.04%).
Foreign demand has declined in percentage and absolute terms. 12.11% of purchases in the third quarter were made by foreigners, compared to 12.92% in the previous quarter, which meant having registered slightly less than 16,000 purchases, while in the second quarter there were slightly more than 17,100. The nationalities with the highest impact on the market were British with 16.17%, which increased compared to the previous quarter (14.91%), showing a clear sign of recovery, followed by French (7.66%), Germans (6.81%), Belgians (5.92%) and Romanians (5.86%). In the last twelve months foreign demand has been 12.87% of purchases, approaching 65,500 sales.
At the provincial stage, foreign demand has reached its highest level in Alicante (39.29%), Tenerife (32.47%), Balearic Islands (27.94%), Malaga (27.19%), Girona (26.84%), Murcia (18.91%), Las Palmas (18.62%), Almería (16.83%) and Castellón (14.12%).
A speedy, efficient of administration and legal offered service certainty will determine the foreign client’s decision to buy a home on the Costa del Sol or in other destination.
Marbella Luxury Homes, real estate agency on the Costa del Sol assures a prompt and effective service in the purchase of a property on the Costa del Sol, while generating a simpler and more reliable buying experience for the client. One of the valuables competitive advantages is that the agents are native speakers of several countries, knowing the needs and specifics of each country. The focus of the company is on customer satisfaction, through a quality service in the purchase and sale of homes on the Costa del Sol as well as multiple services for owners.
The legal system and the steps to follow when buying a property abroad are different in each country, that’s why Marbella Luxury Homes establishes bonds of trust with the client to optimize time and costs given their extensive knowledge and experience in the region becomes the client’s invaluable assistant.
For further information: www.marbellaluxuryhomes.be
Source: El Economista & Expansión News 2018