This is because Spain has two property markets and they operate completely independently of each other. And even within the two markets there are further divisions between prime and secondary locations.
While prices are growing in the prime areas they remain stagnant in the secondary ones. Average prices tell buyers much more about the domestic market.
Unsurprisingly, one of those is Madrid while the rest are where the majority of foreign buyers head for. One of those regions is the Costa Blanca. Alicante is the provincial capital and Javea and Denia are the prime locations for overseas buyers.
These range from unspoilt white sand beaches to small, rocky coves. However, this reports focuses on the Alicante region as it is the most active, at least in respect of overseas buyers. As a result, it is an excellent example of what is happening in the different sectors of the property market. It clearly shows why we maintain that the overseas and domestic markets operate to different rhythms. Only in Greece is it worse. And in spite of the improvement the under 35 age group is still suffering disproportionally.
In this age group the average rate of unemployment is The grim reality is that at the end of five of the ten worst unemployment black spots in the EU were in Spain. Population has decreased in this region because of emigration. In part this is due to other nationals returning to their countries. But Spaniards are still being forced to look for a job abroad. And the bad news is that those Spaniards are the most skilled and best educated.
Statistics like these help explain why the domestic property market is still much weaker than the international one.
On the other hand, the overseas property sector experienced continued growth during on the Costa Blanca. Attracted by the Mediterranean climate and wonderful beaches, overseas buyers are drawn by prices at levels last seen back in The importance of foreign buyers to the Alicante market is clear from the statistics.
And while across Spain international buyers accounted for approximately These statistics beg the question: why so many foreign buyers. One answer has to be affordability. Please bear with us.
Login or register to read articles without any adverts in the text. Skip to content. Spanish Property Market Analysts. Leave a Reply Cancel Reply You must be logged in to post a comment. Foreign Currency Exchange. Financial Distress Solutions. Spanish Property Insight Everything you need to know about property in Spain. Remember Me. Forgot password? Are people buying or selling? Is it a good time to buy? Considering how foreign buyers represent a huge proportion of transactions, two facts are quite interesting:.
Although this sounds scary, this is not specific to Alicante. Indeed in Alicante, the liquidity has improved drastically.
According to TINSA , selling a property is now twice faster than it was four years ago, as you can see below. Last but not least, are property prices going up or down? As house prices in Alicante went down for 8 consecutive years from Q1 to Q3 , they are now definitely entering a positive cycle.