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Average house price in spain

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Sale (7,573)Rent to Own (683)New Construction (987)
931,000
* €/m2
Property market statistics
181 m2 | 8 bedrooms | 5 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1, In December , a house in Spain would cost around thousand euros per square meter built. Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain.

With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected. In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1.

However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink. It contracted to about New home mortgages increased by a minuscule 0. Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1. In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights.

Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market. The new law will be applied to new lease agreements signed on March 6, onwards.

In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The Spanish economy has consistently outperformed much of Europe since. However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1.

Spanish unemployment fell to The total number of unemployed is 3. Inflation is expected to remain low at 1. Spain narrowed its budget deficit to around 2. The deficit is expected to fall further to 2. I know it might be quite early to tell but do you have any data about how the Spanish housing market is standing after Q1 and the COVID lockdown effects?

Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours. Thanks for signing up! To complete your registration, please click the verification link sent to: If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Cantabria welcomed just buyers from overseas in this period while Extremadura was the lowest with Then ask where the majority of those overseas purchasers buy for the explanation.

And the same patchy recovery pattern occurs within regions as well. And the same holds true for other regions as well. However, in the introduction to this report I highlighted the fall in the number of overseas buyers in the first half of Unscrambling the statistics shows 51, foreign nationals bought a property in Spain, compared with 53, in the same period in , On the other hand, when the first half of is compared with the second half of , the foreign buyer total actually rose by 2.

The decline in the Balearics is a bit more puzzling. One reason might be high prices. Also, Mallorca, the main market of the Balearics, has introduced very restrictive tourist rental laws and these may be responsible for the fall in overseas buyers. Although not buy-to-let investors as such, many overseas buyers are keen to cover running costs via rentals when not in residence.

In spite of so much negativity on the part of many commentators and market analysts, almost willing the British market to collapse to back-up their argument, it is proving remarkably resilient. The Germans were in 3rd place with 3, In market share terms the British made up However, these top 3 players all registered falls compared to the same period in There were In fact, there were only two groups from EU countries that increased, Ireland up 1.

Nevertheless, some nationalities showed strong growth but they were all non-EU citizens. Argentinians and Ecuadorians rose Buyers from the US rose Although there were fewer buyers from overseas spending per square metre was up in the most numerous nationalities. The Norwegians went mad and increased average spend per square metre by Only the Irish, Italians and Danes spent less than the same period in But the real big spenders in were from the US.

So, is the overseas market in Spain slowing down? Is demand falling? Is the supply side getting too big? Have prices risen too fast? Lots of questions and several answers, I think. In the case of the British, I think currency weakness is partly to blame. If sterling strengthens throughout I think British buyer numbers will increase once again. However, I think there are other factors at play in the overseas market. In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain.

For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior.

The fact is there is very little raw building land available in the very best locations, it was built on years ago. Consequently, it follows that much of the new-build activity is not in prime locations. However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable.

New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure.

I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys. In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it. At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined.

In reality, the construction industry was more or less wiped out. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4.

With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers.

So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady. On the other hand, if demand is actually falling, then new-build prices will be under serious pressure.

One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase. I think will give some of them quite a shock.

Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market. However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available. However, I have a problem with many asking prices.

I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels. That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price. When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell.

And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum. At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand.

Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards. However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list.

When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price. I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location.

Seems the developer has licence problems. However, buyers are already paying more than that per square metre just to get their hands on a new property. However, in my view that will be because new-build prices retreat, not because resale prices increase markedly.

There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world.

Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately. As a result, rental yields make letting a property in Spain an interesting option.

There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location.

I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record.

At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at In April , the average mortgage rate in Spain stood at 1. Now this is turning around. Mortgages totals are still falling because of the large downturn in new grants during the crisis. In , the Spanish mortgage market contracted to about Average apartment rents in Spain rose by 3.

Rent increases were seen in almost all regions. In Barcelona, the average rent stood at EUR In Madrid, rents also increased 6. Gross rental yields in Spain are slowly recovering, according to Global Property Guide research conducted in July Yields are still not high enough to make buying an apartment attractive from the yields perspective, but are better than previously.

The gross rental yield for apartments in Barcelona ranges from 3. In Madrid-suburbs, rental yields range from 4. This year, housing glut is expected to fall to under , homes, according to APCE association of property developers.

The degree of overbuilding can be guessed at by looking at the number of housing starts from the National Statistics Institute INE :. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The economy grew by a healthy 3. In the first quarter of , the economy advanced 0. It has been a long, hard slog. The economy shrank by 1.

In , the economy grew by a meager 0. At the height of the housing boom in , housing investment was no less than 7. The construction industry became a key employer of low-skilled workers.

In June , consumer prices fell by 0. Annual inflation is expected at 0. Spain narrowed its budget deficit last year to 5.

676,000
* €/m2
Spanish Property Market 2020
214 m2 | 5 bedrooms | 1 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%. It seems that it's either feast or famine in Spain's property market. Between 19the average youth unemployment rate was %, more or less​. Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​.

Already have an account? I want to login. Lalaine C. Delmendo January 15, Spanish house prices rose by 4. On a quarterly basis, house prices increased 1. The Bank of Spain reports lower house price rises. During the year to Q3 , nationwide house prices rose by a modest 3. On a quarterly basis, house prices were up by a minuscule 0.

Spanish house prices had fallen by a total of There were 24 consecutive quarters of y-o-y declines. Demand is slowing gradually. Home sales in Spain fell by 3. Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Construction activity is weakening again, after reaching a seven-year high in During the first seven months of , the number and area of residential building permits fell by Foreclosures for new dwellings increased by In October , fixed rate mortgages represented The Bank of Spain expects economic growth to slow further to 1.

In fact, the European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Foreigners have a right to buy and resell all kinds of property - residential, commercial or land, with no limits.

The boom ended abruptly in The housing slump battered the Spanish economy, and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts. In some places in Spain, but only for the smallest sized apartments, buying an apartment is now attractive from a yields perspective - a completely new situation for Spain. Similar yields, or maybe slightly lower, can also be had in Madrid.

All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination.

The average price of urban land transactions in Spain rose by 4. Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1. Almost half of the autonomous regions and cities saw falling demand. During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4.

Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7. Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia.

In the first half of , there were about approved Golden visa applicants , up Only 0. How many properties are the British buying in Spain as Brexit approaches? The moment of truth is approaching for the highly controversial Brexit.

Countries have started to look at the repercussions this will bring. House prices in Spain have gone up 1. This rise means the average house price in Spain per square metre is 1, euros, which is euros per square foot, according to the latest idealista price index. Expats buy more houses in Spain — more than 65, homes in The purchase and sale of housing by expats in Spain has registered record figures for the second consecutive year, surpassing 65, transactions a growth of 7.

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208,000
* €/m2
House Prices in Spain
102 m2 | 6 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​. Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%. The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1,

If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Already have an account? I want to login. Spanish house prices increased 0. The housing market finally returned to growth in Q4 However quarter-on-quarter, house prices fell by 0. During the year to end-Q1 , Spanish house prices rose by 6.

On a quarterly basis, house prices increased 1. Spanish house prices fell by a total of There were 30 consecutive quarters of y-o-y declines:. Learn what returns you are likely to earn, and where are the best opportunities.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0.

The economy is expected to grow by 2. Urban land prices in Spain rose by 5. Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts.

Uncertainty engulfed the market. However, new dwelling sales declined by about During the first four months of , home sales in Spain rose by Foreign investors started to return to the Spanish property market in The Golden Visa scheme, fully applicable since 30th September , has resulted in increased interest not only from the Middle East but also from Asia and Russia. Spain has received more than EUR million in foreign investment as a result.

For several years prior to , low borrowing costs fuelled a speculative housing bubble in Spain, masked by the initial growth. In April , the average mortgage rate in Spain stood at 1. Now this is turning around. Mortgages totals are still falling because of the large downturn in new grants during the crisis. In , the Spanish mortgage market contracted to about Average apartment rents in Spain rose by 3. Rent increases were seen in almost all regions. Lalaine C. Delmendo January 15, Spanish house prices rose by 4.

On a quarterly basis, house prices increased 1. The Bank of Spain reports lower house price rises. During the year to Q3 , nationwide house prices rose by a modest 3.

On a quarterly basis, house prices were up by a minuscule 0. Spanish house prices had fallen by a total of There were 24 consecutive quarters of y-o-y declines. Demand is slowing gradually. Home sales in Spain fell by 3. Learn what returns you are likely to earn, and where are the best opportunities.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Construction activity is weakening again, after reaching a seven-year high in During the first seven months of , the number and area of residential building permits fell by Foreclosures for new dwellings increased by In October , fixed rate mortgages represented The Bank of Spain expects economic growth to slow further to 1.

In fact, the European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Foreigners have a right to buy and resell all kinds of property - residential, commercial or land, with no limits. The boom ended abruptly in The housing slump battered the Spanish economy, and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts.

In some places in Spain, but only for the smallest sized apartments, buying an apartment is now attractive from a yields perspective - a completely new situation for Spain.

Similar yields, or maybe slightly lower, can also be had in Madrid. All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination. The average price of urban land transactions in Spain rose by 4. Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1.

Almost half of the autonomous regions and cities saw falling demand. During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4.

Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7. Other buyers include Swedes, Belgians, Italians and Chinese.

The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment.

The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape.

575,000
* €/m2
184 m2 | 2 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain. It seems that it's either feast or famine in Spain's property market. Between 19the average youth unemployment rate was %, more or less​. An in-depth analysis of the residential property market in Spain. Will the boom In Madrid, average house price rose by % to EUR per sq. m. In Galicia.

During the year to end-Q1 , Spanish house prices rose by 6. On a quarterly basis, house prices increased 1. Spanish house prices fell by a total of There were 30 consecutive quarters of y-o-y declines:. Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed?

Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0. The economy is expected to grow by 2. Urban land prices in Spain rose by 5.

Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment.

Developers were left with blocks of unsold properties and massive debts. Uncertainty engulfed the market. However, new dwelling sales declined by about During the first four months of , home sales in Spain rose by Foreign investors started to return to the Spanish property market in The Golden Visa scheme, fully applicable since 30th September , has resulted in increased interest not only from the Middle East but also from Asia and Russia.

Spain has received more than EUR million in foreign investment as a result. For several years prior to , low borrowing costs fuelled a speculative housing bubble in Spain, masked by the initial growth. In April , the average mortgage rate in Spain stood at 1. Now this is turning around. Mortgages totals are still falling because of the large downturn in new grants during the crisis. In , the Spanish mortgage market contracted to about Average apartment rents in Spain rose by 3.

Rent increases were seen in almost all regions. In Barcelona, the average rent stood at EUR In Madrid, rents also increased 6. Gross rental yields in Spain are slowly recovering, according to Global Property Guide research conducted in July Yields are still not high enough to make buying an apartment attractive from the yields perspective, but are better than previously.

The gross rental yield for apartments in Barcelona ranges from 3. In Madrid-suburbs, rental yields range from 4. Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1. Almost half of the autonomous regions and cities saw falling demand.

During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4.

Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7. Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia.

In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment. The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape.

Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria. Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected.

In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1.

However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink.

It contracted to about New home mortgages increased by a minuscule 0. Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1. In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights. Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market.

The new law will be applied to new lease agreements signed on March 6, onwards. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland.

The Spanish economy has consistently outperformed much of Europe since. However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1.

Spanish unemployment fell to The total number of unemployed is 3. Inflation is expected to remain low at 1. Spain narrowed its budget deficit to around 2. The deficit is expected to fall further to 2. I know it might be quite early to tell but do you have any data about how the Spanish housing market is standing after Q1 and the COVID lockdown effects?

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221,000
* €/m2
196 m2 | 3 bedrooms | 10 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%. In December , a house in Spain would cost around thousand euros per square meter built. Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​.

No account yet? Sign up. If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Already have an account? I want to login. Spanish house prices increased 0. The housing market finally returned to growth in Q4 However quarter-on-quarter, house prices fell by 0. During the year to end-Q1 , Spanish house prices rose by 6. On a quarterly basis, house prices increased 1. Spanish house prices fell by a total of There were 30 consecutive quarters of y-o-y declines:.

Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0. The economy is expected to grow by 2. Urban land prices in Spain rose by 5.

Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4. With two months still to count in , 91, permits had been authorised across Spain.

However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers. So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector.

As the supply side improves one would expect prices rises to moderate even if demand holds steady. On the other hand, if demand is actually falling, then new-build prices will be under serious pressure. One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase.

I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market. However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay.

Look hard and there are still good deals available. However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels.

That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price. When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices.

Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum. At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand.

Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards. However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list.

When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price. I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems.

However, buyers are already paying more than that per square metre just to get their hands on a new property. However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location.

I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase.

In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off.

In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly. This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months.

Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists.

And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market.

It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others.

In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals.

So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences. But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over.

My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce.

Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain.

Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow. Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market.

Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage.

There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase. However, there are no restrictions on nationality or purchase price.

A good broker is essential. Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business.

It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction. Also in December , I noted warnings from valuers about the spectre of overvaluations creeping back into the market. The loan is then offered on whichever is lower, the valuation or the property price. They may be only a warning flag but they may also be the first signs of something more serious. Even more reason then for buyers to be very cautious, particularly in the new-build market.

It is essential to do the research and compare asking prices for new property with comparables in the resale sector. Look at peak prices prior to the crash and ask yourself if you should be paying even more than that now. Lots of soft focus life-style images, very seductive, but better to check the price per square metre and ask if it makes sense.

However, if you buy at the right price, Spanish property is still relatively affordable. The sun continues to shine and the quality of life is rated one of the best in the world. The lack of high-quality inventory at the right price in prime locations will be an issue throughout As far as the overseas market is concerned that means the Mediterranean coasts, the Balearics and the Canaries.

Why Spain and Portugal are so attractive for real estate investors Spain and Portugal have taken advantage of the recent years of economic recovery to attract large international investors and to enter the list of the most interesting real estate markets in developed countries.

Real estate in Barcelona: an assessment of and the outlook Barcelona continues to attract real estate buyers from all over the world and is one of the best European cities for investment in , thanks to its exceptional quality of life and growing number of investment opportunities. Only 0. How many properties are the British buying in Spain as Brexit approaches?

The moment of truth is approaching for the highly controversial Brexit.

615,000
* €/m2
Investment Analysis of Spanish Real Estate Market
276 m2 | 4 bedrooms | 3 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%. We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more. Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain.

In fact, Spain has occupied the top spot ever the scheme began in This puts it in third place globally, behind Italy 54 and China Living well is affordable with food and drink prices below the E. Spanish cuisine is world-class. Spain has three restaurants listed in the top ten restaurants in the world, more than any other country.

Sports and outdoor enthusiasts are spoilt for choice. I said in the introduction to this report that, in spite of lots more good news, the market is still patchy. Remember that these statistics only cover the first half of but I expect the full year figures will confirm the results so far.

Cantabria welcomed just buyers from overseas in this period while Extremadura was the lowest with Then ask where the majority of those overseas purchasers buy for the explanation. And the same patchy recovery pattern occurs within regions as well. And the same holds true for other regions as well.

However, in the introduction to this report I highlighted the fall in the number of overseas buyers in the first half of Unscrambling the statistics shows 51, foreign nationals bought a property in Spain, compared with 53, in the same period in , On the other hand, when the first half of is compared with the second half of , the foreign buyer total actually rose by 2. The decline in the Balearics is a bit more puzzling.

One reason might be high prices. Also, Mallorca, the main market of the Balearics, has introduced very restrictive tourist rental laws and these may be responsible for the fall in overseas buyers. Although not buy-to-let investors as such, many overseas buyers are keen to cover running costs via rentals when not in residence.

In spite of so much negativity on the part of many commentators and market analysts, almost willing the British market to collapse to back-up their argument, it is proving remarkably resilient. The Germans were in 3rd place with 3, In market share terms the British made up However, these top 3 players all registered falls compared to the same period in There were In fact, there were only two groups from EU countries that increased, Ireland up 1.

Nevertheless, some nationalities showed strong growth but they were all non-EU citizens. Argentinians and Ecuadorians rose Buyers from the US rose Although there were fewer buyers from overseas spending per square metre was up in the most numerous nationalities.

The Norwegians went mad and increased average spend per square metre by Only the Irish, Italians and Danes spent less than the same period in But the real big spenders in were from the US. So, is the overseas market in Spain slowing down? Is demand falling? Is the supply side getting too big? Have prices risen too fast? Lots of questions and several answers, I think. In the case of the British, I think currency weakness is partly to blame.

If sterling strengthens throughout I think British buyer numbers will increase once again. However, I think there are other factors at play in the overseas market.

In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain.

For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior. The fact is there is very little raw building land available in the very best locations, it was built on years ago.

Consequently, it follows that much of the new-build activity is not in prime locations. However, since the recovery started the supply side of new apartments and houses lagged way behind demand.

Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable. New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure.

I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys. In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it. At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined. In reality, the construction industry was more or less wiped out.

Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4. With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers.

So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady.

On the other hand, if demand is actually falling, then new-build prices will be under serious pressure. One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase. I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow.

Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market. However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available. However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels.

That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price.

When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum.

At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand. Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards.

However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price. I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems.

However, buyers are already paying more than that per square metre just to get their hands on a new property. However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t.

There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key.

It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time.

In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off. In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly.

This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months. Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists.

And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market.

It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others. In addition, I search for a type of property and reject others.

Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals. So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences. But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over.

My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce. Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain.

Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow. Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market. Indeed, the majority of international buyers are opting for fixed rate over variable rate loans.

My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage. There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase. However, there are no restrictions on nationality or purchase price. A good broker is essential.

Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business.

It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction. Also in December , I noted warnings from valuers about the spectre of overvaluations creeping back into the market. The loan is then offered on whichever is lower, the valuation or the property price. They may be only a warning flag but they may also be the first signs of something more serious.

Even more reason then for buyers to be very cautious, particularly in the new-build market. It is essential to do the research and compare asking prices for new property with comparables in the resale sector.

Real estate after COVID uncertainty, investment on stand by and recovery in the medium term The real estate business is taking a bit from the health and economic crisis that is affecting the whole world. Why Spain and Portugal are so attractive for real estate investors Spain and Portugal have taken advantage of the recent years of economic recovery to attract large international investors and to enter the list of the most interesting real estate markets in developed countries.

Real estate in Barcelona: an assessment of and the outlook Barcelona continues to attract real estate buyers from all over the world and is one of the best European cities for investment in , thanks to its exceptional quality of life and growing number of investment opportunities. Only 0. How many properties are the British buying in Spain as Brexit approaches? The moment of truth is approaching for the highly controversial Brexit.

Countries have started to look at the repercussions this will bring. House prices in Spain have gone up 1.

437,000
* €/m2
269 m2 | 10 bedrooms | 3 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain. Full analysis of Spain's property market. From to , Spain's national average house price rose by % (% inflation-adjusted), one of Europe's. The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1,

Sign up. If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Already have an account? I want to login. Lalaine C. Delmendo January 15, Spanish house prices rose by 4. On a quarterly basis, house prices increased 1. The Bank of Spain reports lower house price rises. During the year to Q3 , nationwide house prices rose by a modest 3. On a quarterly basis, house prices were up by a minuscule 0.

Spanish house prices had fallen by a total of There were 24 consecutive quarters of y-o-y declines. Demand is slowing gradually. Home sales in Spain fell by 3. Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter.

Sign Up. Already Subscribed? Manage your subscription. Construction activity is weakening again, after reaching a seven-year high in During the first seven months of , the number and area of residential building permits fell by Foreclosures for new dwellings increased by In October , fixed rate mortgages represented The Bank of Spain expects economic growth to slow further to 1.

In fact, the European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Foreigners have a right to buy and resell all kinds of property - residential, commercial or land, with no limits. The boom ended abruptly in The housing slump battered the Spanish economy, and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts. In some places in Spain, but only for the smallest sized apartments, buying an apartment is now attractive from a yields perspective - a completely new situation for Spain.

Similar yields, or maybe slightly lower, can also be had in Madrid. All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination. The average price of urban land transactions in Spain rose by 4.

Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1. Almost half of the autonomous regions and cities saw falling demand. During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4.

Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7. Other buyers include Swedes, Belgians, Italians and Chinese. And the signs are that is unlikely to be any different. Yes, unemployment is down. Nevertheless, at Overall, Spain has five of the ten worst unemployment black spots in the EU. Source: Eurostat. In fact, one third of the under 30s age group in Spain has never had a job.

Meanwhile, in Germany the unemployment rate for the same demographic is an average 6. Yes, , new jobs in a year is impressive. However, seasonal, temporary and part-time contracts still outnumber permanent ones by a big margin. For example, of the One of the reasons for these figures is that tourism is currently the biggest source of employment in Spain in , with Unfortunately, jobs in tourism tend to be low-skilled, low paid, temporary and seasonal.

While noting improvements in the economy since the previous report in it highlighted persistent structural problems hindering sustained recovery. It seems not much has changed. They were the same issues mentioned in the report, above all the dire unemployment figures.

The reality is that Spain has never been close to full employment even for adults. Between and the average youth unemployment rate was Even in at the height of the boom it was Source: Eurostat So, in spite of several boom periods in that timeline, Spain has made little progress in improving job prospects for young people.

Inevitably, such insecurity spills over into the housing market. A recent report from the Bank of Spain suggests the domestic housing market will remain relatively weak for years to come. Instead, Spaniards have actually returned to income levels of the year And even worse, the wages of low-skilled youths have retreated further, to late levels. Now, at age 30, they earn less than year-olds did 10 years, ago and almost the same as year-olds earned 20 years ago.

In effect, two decades of purchasing power have been lost. In addition, there has been a similar regression regarding the salaries of skilled workers. Source: Bank of Spain. And the signs have been there for a while. And it would have been even worse but for the fact that many buyers were already locked into off-plan purchases made before the crash.

But the decline hit bottom in the second half of as foreign bargain hunters emerged. And the number of overseas buyers has increased every year since. Meanwhile, the domestic property market was still falling in When the first upturn was registered in , it was fully four years behind the overseas sector.

Life expectancy rose by ten years between and At 80yrs for men and 85yrs for women Spaniards have the highest life expectancy in the EU and third worldwide. Only Japan and Switzerland do better although only by a few months. The climate suits all tastes.

It ranges from four seasons with a proper winter and lots of snow in the north to the sub-tropical south. In fact, Spain has occupied the top spot ever the scheme began in This puts it in third place globally, behind Italy 54 and China Living well is affordable with food and drink prices below the E. Spanish cuisine is world-class. Spain has three restaurants listed in the top ten restaurants in the world, more than any other country.

Sports and outdoor enthusiasts are spoilt for choice. I said in the introduction to this report that, in spite of lots more good news, the market is still patchy. Remember that these statistics only cover the first half of but I expect the full year figures will confirm the results so far.

Cantabria welcomed just buyers from overseas in this period while Extremadura was the lowest with Then ask where the majority of those overseas purchasers buy for the explanation. And the same patchy recovery pattern occurs within regions as well. And the same holds true for other regions as well. However, in the introduction to this report I highlighted the fall in the number of overseas buyers in the first half of Unscrambling the statistics shows 51, foreign nationals bought a property in Spain, compared with 53, in the same period in , On the other hand, when the first half of is compared with the second half of , the foreign buyer total actually rose by 2.

The decline in the Balearics is a bit more puzzling. One reason might be high prices. Also, Mallorca, the main market of the Balearics, has introduced very restrictive tourist rental laws and these may be responsible for the fall in overseas buyers.

Although not buy-to-let investors as such, many overseas buyers are keen to cover running costs via rentals when not in residence. In spite of so much negativity on the part of many commentators and market analysts, almost willing the British market to collapse to back-up their argument, it is proving remarkably resilient. The Germans were in 3rd place with 3, In market share terms the British made up However, these top 3 players all registered falls compared to the same period in There were In fact, there were only two groups from EU countries that increased, Ireland up 1.

Nevertheless, some nationalities showed strong growth but they were all non-EU citizens. Argentinians and Ecuadorians rose Buyers from the US rose Although there were fewer buyers from overseas spending per square metre was up in the most numerous nationalities.

The Norwegians went mad and increased average spend per square metre by Only the Irish, Italians and Danes spent less than the same period in But the real big spenders in were from the US. So, is the overseas market in Spain slowing down? Is demand falling? Is the supply side getting too big? Have prices risen too fast?

Lots of questions and several answers, I think. In the case of the British, I think currency weakness is partly to blame. If sterling strengthens throughout I think British buyer numbers will increase once again. However, I think there are other factors at play in the overseas market. In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain.

For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior. The fact is there is very little raw building land available in the very best locations, it was built on years ago. Consequently, it follows that much of the new-build activity is not in prime locations.

However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable. New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure. I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys.

In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it.

At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined. In reality, the construction industry was more or less wiped out. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4.

With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers.

So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady. On the other hand, if demand is actually falling, then new-build prices will be under serious pressure.

One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase. I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market. However, available stock is more in balance with demand.

In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available.

However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels. That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price.

When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum. At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand.

Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards. However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list.

When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price. I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems. However, buyers are already paying more than that per square metre just to get their hands on a new property.

However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase.

In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off.

307,000
* €/m2
Other areas
201 m2 | 2 bedrooms | 3 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1, Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​. Market view. info. Average price, €. € % from 25/05/ Price per m2 1, €. +9 €/ m2 + % from 25/05/ Number of properties.

In fact, there were only two groups from EU countries that increased, Ireland up 1. Nevertheless, some nationalities showed strong growth but they were all non-EU citizens. Argentinians and Ecuadorians rose Buyers from the US rose Although there were fewer buyers from overseas spending per square metre was up in the most numerous nationalities. The Norwegians went mad and increased average spend per square metre by Only the Irish, Italians and Danes spent less than the same period in But the real big spenders in were from the US.

So, is the overseas market in Spain slowing down? Is demand falling? Is the supply side getting too big? Have prices risen too fast? Lots of questions and several answers, I think. In the case of the British, I think currency weakness is partly to blame. If sterling strengthens throughout I think British buyer numbers will increase once again. However, I think there are other factors at play in the overseas market. In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain.

For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior. The fact is there is very little raw building land available in the very best locations, it was built on years ago.

Consequently, it follows that much of the new-build activity is not in prime locations. However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable. New may be nice but is it worth paying double, or even more, per square metre than a resale?

However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure. I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys. In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it.

At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined. In reality, the construction industry was more or less wiped out.

Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4. With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers.

So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady.

On the other hand, if demand is actually falling, then new-build prices will be under serious pressure. One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase. I think will give some of them quite a shock.

Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market. However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available.

However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels. That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price.

When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum. At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand.

Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards. However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price.

I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems. However, buyers are already paying more than that per square metre just to get their hands on a new property.

However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately. As a result, rental yields make letting a property in Spain an interesting option.

There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t.

There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time.

In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off.

In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly. This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months. Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists.

And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market. It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others. In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved.

As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals.

So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences. But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over. My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce. Only a massive bail-out from the European Central Bank prevented widespread collapse.

Developers were left with blocks of unsold properties and massive debts. In some places in Spain, but only for the smallest sized apartments, buying an apartment is now attractive from a yields perspective - a completely new situation for Spain.

Similar yields, or maybe slightly lower, can also be had in Madrid. All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination. The average price of urban land transactions in Spain rose by 4. Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1.

Almost half of the autonomous regions and cities saw falling demand. During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4. Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7.

Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment.

The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape. Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria.

Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected. In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1. However, there has been a continuous decline in the share of adjustable rate mortgages in recent years.

In the coming quarters the housing market faces a drop in sales, mortgage signing, prices and investment operations. The impact of COVID on the Spanish real estate sector explained in 7 steps With their eyes already set on what is being called the "new normal", real estate agents in Spain are beginning to wonder what the consequences and recovery will look like and what the keys to a successful come back are that they must carry out in the wake of the coronavirus crisis.

The positive consequences that the coronavirus crisis will have on the housing market in Spain During the current coronavirus crisis in Spain, it's always good to try and look for the positives. The housing market doing exacty this and is trying to get a more positive reading on the health crisis and the economic blow expected from the COVID outbreak.

Real estate after COVID uncertainty, investment on stand by and recovery in the medium term The real estate business is taking a bit from the health and economic crisis that is affecting the whole world.

124,000
* €/m2
114 m2 | 3 bedrooms | 1 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
It seems that it's either feast or famine in Spain's property market. Between 19the average youth unemployment rate was %, more or less​. The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1, Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%.

Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment. The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape.

Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria. Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected. In fact, some allege there is now a growing housing shortage.

However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1. However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink. It contracted to about New home mortgages increased by a minuscule 0.

Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1. In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights. Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market.

The new law will be applied to new lease agreements signed on March 6, onwards. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The Spanish economy has consistently outperformed much of Europe since.

However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1.

Spanish unemployment fell to The total number of unemployed is 3. And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market. It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others.

In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals. So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences.

But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over. My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce. Only a massive bail-out from the European Central Bank prevented widespread collapse.

One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain. Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow.

Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market.

Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage. There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase.

However, there are no restrictions on nationality or purchase price. A good broker is essential. Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business. It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction.

Also in December , I noted warnings from valuers about the spectre of overvaluations creeping back into the market. The loan is then offered on whichever is lower, the valuation or the property price. They may be only a warning flag but they may also be the first signs of something more serious. Even more reason then for buyers to be very cautious, particularly in the new-build market.

It is essential to do the research and compare asking prices for new property with comparables in the resale sector. Look at peak prices prior to the crash and ask yourself if you should be paying even more than that now. Lots of soft focus life-style images, very seductive, but better to check the price per square metre and ask if it makes sense. However, if you buy at the right price, Spanish property is still relatively affordable. The sun continues to shine and the quality of life is rated one of the best in the world.

The lack of high-quality inventory at the right price in prime locations will be an issue throughout As far as the overseas market is concerned that means the Mediterranean coasts, the Balearics and the Canaries.

My advice to buyers in is do not obsess about new-builds, especially if not located in prime positions. Many are not. Consider equivalent resales, calculate the price per sq. Then you can take an informed view on what makes the best financial sense. The result will almost certainly be a lower price, a bigger property and, most important of all, a superior location. A thorough search can still uncover some real deals although they will be harder to find in Nevertheless, there will always be some sellers more motivated and realistic than others.

If there is a mobile mast in view assume there will be more as the tendency is for them multiply. Electricity pylons are also a big no-no. We can assume new housing will increase in the medium term. Already, in some areas I can count twenty cranes while standing still. If there is vacant land nearby find out with absolute certainty what, if anything, can be constructed.

The selling agent saying it is green zone is just not good enough. Why risk losing a fabulous view? And finally, when I am assessing properties for my clients I always ask the following questions. If circumstances change and they need to sell quickly is the price right to enable them to do that? Secondly, is this a property for which there will always be demand irrespective of market conditions? And that is that there will always be demand for top quality in prime locations.

It always has been, still is and always will be about location. And I, for one, will be waiting for the full-year number of overseas buyers in with even more interest than usual. That statistic will tell us a lot.

I update this Spanish Property Market report throughout the year as new data becomes available. You can also follow us on Twitter and Facebook for the latest news as it happens. Still in recovery mode from the meltdown, the Spanish property market faces more turmoil in the wake of Covid The signs were there at the end of Now the 1st half year statistics seem to confirm a downward trend.

Overseas demand in Spain in Will it be up, down or flatlining? All intellectual property in the design, images and text of this website are and will remain the property of The Property Finders. Any infringement of our rights will be pursued vigorously. GDPR - We guarantee the personal data entered in the contact form will only be used for the purpose of replying to your enquiry and will not be shared with any other company, service or provider.

Spanish Property Market Introduction Without doubt an important factor in the recovery of the Spanish property market since the meltdown has been the growth of the overseas sector.

Where the numbers come from The Notaries produce the most reliable property market statistics. But there are always buts However, the fact is that, in spite of minor improvements, not that much changed in Where is the Action? Regional Variations And the same patchy recovery pattern occurs within regions as well.

The Supply Side At the height of the building frenzy in Spain approved building licences for , units. The Price per Square Metre Conundrum Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum. Rental Yields There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Tourism Numbers It seems likely that demand for short-term holiday rentals is only going to increase. It is vital that the quality sector continues to grow Important for Yields When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others.

Spoilt for Choice There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. Getting it Right However, if you buy at the right price, Spanish property is still relatively affordable. From the Blog rss. The Spanish Property Market — What next? Are there signs of a slowdown? Latest tweets twitter. Tweets by wecanfindit. Property price warning Warning from the International Monetary Fund about price rises in Spain 09ms.

The latest statistics about international buyers and where they are buying Talking about the big difference between prices for resales and new builds. In , the Spanish mortgage market contracted to about Average apartment rents in Spain rose by 3. Rent increases were seen in almost all regions. In Barcelona, the average rent stood at EUR In Madrid, rents also increased 6. Gross rental yields in Spain are slowly recovering, according to Global Property Guide research conducted in July Yields are still not high enough to make buying an apartment attractive from the yields perspective, but are better than previously.

The gross rental yield for apartments in Barcelona ranges from 3. In Madrid-suburbs, rental yields range from 4. This year, housing glut is expected to fall to under , homes, according to APCE association of property developers. The degree of overbuilding can be guessed at by looking at the number of housing starts from the National Statistics Institute INE :.

In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The economy grew by a healthy 3. In the first quarter of , the economy advanced 0.

It has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. At the height of the housing boom in , housing investment was no less than 7. The construction industry became a key employer of low-skilled workers. In June , consumer prices fell by 0. Annual inflation is expected at 0. Spain narrowed its budget deficit last year to 5. Due to its failure to meet its target, the European Commission has recently proposed to fine it, together with Portugal, in an effort to enforce rules designed to avert another debt crisis.

Should the recommendation be approved, fines can reach as high as 0. It is expected to increase further to

189,000
* €/m2
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223 m2 | 1 bedrooms | 1 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​. In December , a house in Spain would cost around thousand euros per square meter built. Full analysis of Spain's property market. From to , Spain's national average house price rose by % (% inflation-adjusted), one of Europe's.

However, I think there are other factors at play in the overseas market. In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain. For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior.

The fact is there is very little raw building land available in the very best locations, it was built on years ago.

Consequently, it follows that much of the new-build activity is not in prime locations. However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable. New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure.

I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys. In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it. At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined.

In reality, the construction industry was more or less wiped out. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4. With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers.

So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady. On the other hand, if demand is actually falling, then new-build prices will be under serious pressure. One thing for sure, no developer goes into a project expecting prices to fall during construction.

The assumption is always that prices will rise phase by phase. I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market.

However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available. However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels.

That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price. When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum.

At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand. Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards.

However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price.

I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems. However, buyers are already paying more than that per square metre just to get their hands on a new property.

However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately. As a result, rental yields make letting a property in Spain an interesting option.

There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record.

At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off.

In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly. This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months.

Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists.

And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market.

It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others. In addition, I search for a type of property and reject others.

Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals. So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences.

But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over. My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce.

Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain. Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow.

Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market.

Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage.

There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase.

However, there are no restrictions on nationality or purchase price. A good broker is essential. Real estate in Barcelona: an assessment of and the outlook Barcelona continues to attract real estate buyers from all over the world and is one of the best European cities for investment in , thanks to its exceptional quality of life and growing number of investment opportunities. Only 0. How many properties are the British buying in Spain as Brexit approaches?

The moment of truth is approaching for the highly controversial Brexit. Countries have started to look at the repercussions this will bring. No account yet? Sign up.

If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Already have an account? I want to login. Spanish house prices increased 0. The housing market finally returned to growth in Q4 However quarter-on-quarter, house prices fell by 0. During the year to end-Q1 , Spanish house prices rose by 6. On a quarterly basis, house prices increased 1. Spanish house prices fell by a total of There were 30 consecutive quarters of y-o-y declines:.

Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0.

The economy is expected to grow by 2. Urban land prices in Spain rose by 5. Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment.

981,000
* €/m2
245 m2 | 3 bedrooms | 1 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price, €. € % from 25/05/ Price per m2 1, €. +9 €/ m2 + % from 25/05/ Number of properties. In December , a house in Spain would cost around thousand euros per square meter built. Full analysis of Spain's property market. From to , Spain's national average house price rose by % (% inflation-adjusted), one of Europe's.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up.

Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0. The economy is expected to grow by 2. Urban land prices in Spain rose by 5. Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment.

Developers were left with blocks of unsold properties and massive debts. Uncertainty engulfed the market. However, new dwelling sales declined by about During the first four months of , home sales in Spain rose by Foreign investors started to return to the Spanish property market in The Golden Visa scheme, fully applicable since 30th September , has resulted in increased interest not only from the Middle East but also from Asia and Russia.

Spain has received more than EUR million in foreign investment as a result. For several years prior to , low borrowing costs fuelled a speculative housing bubble in Spain, masked by the initial growth.

In April , the average mortgage rate in Spain stood at 1. Now this is turning around. Mortgages totals are still falling because of the large downturn in new grants during the crisis. In , the Spanish mortgage market contracted to about Average apartment rents in Spain rose by 3. The fact is there is very little raw building land available in the very best locations, it was built on years ago. Consequently, it follows that much of the new-build activity is not in prime locations.

However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable. New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure.

I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys. In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it. At the height of the building frenzy in Spain approved building licences for , units.

This figure was more than the UK, France and Germany combined. In reality, the construction industry was more or less wiped out. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4. With two months still to count in , 91, permits had been authorised across Spain.

However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers. So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector. As the supply side improves one would expect prices rises to moderate even if demand holds steady.

On the other hand, if demand is actually falling, then new-build prices will be under serious pressure. One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase.

I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market.

However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available.

However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels.

That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price. When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum.

At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand. Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards.

However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price.

I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems. However, buyers are already paying more than that per square metre just to get their hands on a new property.

However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key.

It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time.

In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off. In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly. This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months.

Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists. And the very high demand for the most expensive rental properties seems to bear this out.

The most important thing, in my view, is that there are no losses at the top of the market. It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others. In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals.

So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences. But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over.

My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce. Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance.

I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain. Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow.

Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market. Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage.

There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase. However, there are no restrictions on nationality or purchase price. A good broker is essential. Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business.

It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction. Real estate in Barcelona: an assessment of and the outlook Barcelona continues to attract real estate buyers from all over the world and is one of the best European cities for investment in , thanks to its exceptional quality of life and growing number of investment opportunities.

Only 0. How many properties are the British buying in Spain as Brexit approaches? The moment of truth is approaching for the highly controversial Brexit.

Countries have started to look at the repercussions this will bring.

951,000
* €/m2
167 m2 | 8 bedrooms | 6 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
The price of used housing in Spain rose % during the second quarter of This rise means the average house price in Spain per square metre is 1, We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more. Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain.

Already have an account? I want to login. Spanish house prices increased 0. The housing market finally returned to growth in Q4 However quarter-on-quarter, house prices fell by 0. During the year to end-Q1 , Spanish house prices rose by 6. On a quarterly basis, house prices increased 1. Spanish house prices fell by a total of There were 30 consecutive quarters of y-o-y declines:. Learn what returns you are likely to earn, and where are the best opportunities.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0. The economy is expected to grow by 2. Urban land prices in Spain rose by 5. Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment.

Developers were left with blocks of unsold properties and massive debts. Uncertainty engulfed the market. However, new dwelling sales declined by about Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t.

There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record.

At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off. In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly.

This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months. Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists. And the very high demand for the most expensive rental properties seems to bear this out.

The most important thing, in my view, is that there are no losses at the top of the market. It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others. In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals.

So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences. But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over. My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce.

Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search. When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain.

Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow. Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market.

Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage.

There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase. However, there are no restrictions on nationality or purchase price. A good broker is essential. Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business. It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction.

Also in December , I noted warnings from valuers about the spectre of overvaluations creeping back into the market. The loan is then offered on whichever is lower, the valuation or the property price. They may be only a warning flag but they may also be the first signs of something more serious.

Even more reason then for buyers to be very cautious, particularly in the new-build market. It is essential to do the research and compare asking prices for new property with comparables in the resale sector.

Look at peak prices prior to the crash and ask yourself if you should be paying even more than that now. Lots of soft focus life-style images, very seductive, but better to check the price per square metre and ask if it makes sense. However, if you buy at the right price, Spanish property is still relatively affordable. The sun continues to shine and the quality of life is rated one of the best in the world. The lack of high-quality inventory at the right price in prime locations will be an issue throughout As far as the overseas market is concerned that means the Mediterranean coasts, the Balearics and the Canaries.

My advice to buyers in is do not obsess about new-builds, especially if not located in prime positions. Many are not. Consider equivalent resales, calculate the price per sq. Then you can take an informed view on what makes the best financial sense.

The result will almost certainly be a lower price, a bigger property and, most important of all, a superior location. A thorough search can still uncover some real deals although they will be harder to find in Nevertheless, there will always be some sellers more motivated and realistic than others. If there is a mobile mast in view assume there will be more as the tendency is for them multiply. Electricity pylons are also a big no-no.

We can assume new housing will increase in the medium term. Already, in some areas I can count twenty cranes while standing still. If there is vacant land nearby find out with absolute certainty what, if anything, can be constructed. The selling agent saying it is green zone is just not good enough. Why risk losing a fabulous view? And finally, when I am assessing properties for my clients I always ask the following questions.

If circumstances change and they need to sell quickly is the price right to enable them to do that? Secondly, is this a property for which there will always be demand irrespective of market conditions? And that is that there will always be demand for top quality in prime locations. It always has been, still is and always will be about location. And I, for one, will be waiting for the full-year number of overseas buyers in with even more interest than usual.

That statistic will tell us a lot. I update this Spanish Property Market report throughout the year as new data becomes available. You can also follow us on Twitter and Facebook for the latest news as it happens. Still in recovery mode from the meltdown, the Spanish property market faces more turmoil in the wake of Covid The signs were there at the end of Now the 1st half year statistics seem to confirm a downward trend.

Overseas demand in Spain in Will it be up, down or flatlining? All intellectual property in the design, images and text of this website are and will remain the property of The Property Finders.

Any infringement of our rights will be pursued vigorously. GDPR - We guarantee the personal data entered in the contact form will only be used for the purpose of replying to your enquiry and will not be shared with any other company, service or provider.

Spanish Property Market Introduction Without doubt an important factor in the recovery of the Spanish property market since the meltdown has been the growth of the overseas sector. Where the numbers come from The Notaries produce the most reliable property market statistics. But there are always buts However, the fact is that, in spite of minor improvements, not that much changed in Where is the Action? Why Spain and Portugal are so attractive for real estate investors Spain and Portugal have taken advantage of the recent years of economic recovery to attract large international investors and to enter the list of the most interesting real estate markets in developed countries.

Real estate in Barcelona: an assessment of and the outlook Barcelona continues to attract real estate buyers from all over the world and is one of the best European cities for investment in , thanks to its exceptional quality of life and growing number of investment opportunities. Only 0. How many properties are the British buying in Spain as Brexit approaches?

The moment of truth is approaching for the highly controversial Brexit.

502,000
* €/m2
106 m2 | 9 bedrooms | 5 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price, €. € % from 25/05/ Price per m2 1, €. +9 €/ m2 + % from 25/05/ Number of properties. Full analysis of Spain's property market. From to , Spain's national average house price rose by % (% inflation-adjusted), one of Europe's. Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​.

Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment.

The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape. Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria.

Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected.

In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1. However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink. It contracted to about New home mortgages increased by a minuscule 0.

Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1.

In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights.

Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market. The new law will be applied to new lease agreements signed on March 6, onwards. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland.

The Spanish economy has consistently outperformed much of Europe since. However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Spanish unemployment fell to The total number of unemployed is 3.

Inflation is expected to remain low at 1. Spain narrowed its budget deficit to around 2. The deficit is expected to fall further to 2. I know it might be quite early to tell but do you have any data about how the Spanish housing market is standing after Q1 and the COVID lockdown effects? Login or Register to submit a comment!

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Send Instructions. Tailor your overseas property investment strategy! Sign Up Already Subscribed? Get GPG fortnightly newsletters delivered to your inbox A quick summary of global real estate trends. How many properties are the British buying in Spain as Brexit approaches? The moment of truth is approaching for the highly controversial Brexit. Countries have started to look at the repercussions this will bring.

House prices in Spain have gone up 1. This rise means the average house price in Spain per square metre is 1, euros, which is euros per square foot, according to the latest idealista price index. Expats buy more houses in Spain — more than 65, homes in The purchase and sale of housing by expats in Spain has registered record figures for the second consecutive year, surpassing 65, transactions a growth of 7.

Ready to find the house of your dreams? Find houses for sale and long term rentals on idealista.

631,000
* €/m2
Old Entries
226 m2 | 5 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price, €. € % from 25/05/ Price per m2 1, €. +9 €/ m2 + % from 25/05/ Number of properties. Average property prices and property investment indices in Spain. Price per Square Feet to Buy Apartment in City Centre, €. Price per Square Feet to​. Will the property market in Spain rise with coronavirus? incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4​%.

In Barcelona, the average rent stood at EUR In Madrid, rents also increased 6. Gross rental yields in Spain are slowly recovering, according to Global Property Guide research conducted in July Yields are still not high enough to make buying an apartment attractive from the yields perspective, but are better than previously.

The gross rental yield for apartments in Barcelona ranges from 3. In Madrid-suburbs, rental yields range from 4. This year, housing glut is expected to fall to under , homes, according to APCE association of property developers. The degree of overbuilding can be guessed at by looking at the number of housing starts from the National Statistics Institute INE :. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland.

The economy grew by a healthy 3. In the first quarter of , the economy advanced 0. It has been a long, hard slog.

The economy shrank by 1. In , the economy grew by a meager 0. At the height of the housing boom in , housing investment was no less than 7. The construction industry became a key employer of low-skilled workers. In June , consumer prices fell by 0. Annual inflation is expected at 0. Spain narrowed its budget deficit last year to 5. Due to its failure to meet its target, the European Commission has recently proposed to fine it, together with Portugal, in an effort to enforce rules designed to avert another debt crisis.

Should the recommendation be approved, fines can reach as high as 0. It is expected to increase further to I know it might be quite early to tell but do you have any data about how the Spanish housing market is standing after Q1 and the COVID lockdown effects? Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment.

The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape. Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria. Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected.

In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1.

However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink. It contracted to about New home mortgages increased by a minuscule 0.

Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1. In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights. Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market.

The new law will be applied to new lease agreements signed on March 6, onwards. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The Spanish economy has consistently outperformed much of Europe since. However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0.

The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Spanish unemployment fell to The total number of unemployed is 3. Inflation is expected to remain low at 1. Spain narrowed its budget deficit to around 2. At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand. Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards.

However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price. I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems.

However, buyers are already paying more than that per square metre just to get their hands on a new property. However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector.

Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately. As a result, rental yields make letting a property in Spain an interesting option.

There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key. It seems likely that demand for short-term holiday rentals is only going to increase.

In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. At the end of the annual total had fallen to However, a decade later, the statistics show the 83m barrier broken for the first time. In fact, at There are also signs that improved marketing to pitch Spain as a year-round destination is paying off.

In the three winter months, January through March, showed the biggest monthly increases while the three summer months were either flat or decreased slightly. This indicates there is improving rental potential throughout the year and not just in the traditional high season summer months. Analysis of the tourism statistics indicates that the decline of foreign tourists in high season was the result of the recovery in cheaper package-holiday destinations such as Tunisia, Morocco and Egypt rather than fewer high-end tourists.

And the very high demand for the most expensive rental properties seems to bear this out. The most important thing, in my view, is that there are no losses at the top of the market. It is vital that the quality sector continues to grow. When I am working for a client whose brief requires reliable rental income I target certain areas and ignore others.

In addition, I search for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved.

As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals. So, if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences.

But the days of leaving a set of keys at the local bar and crossing fingers that no emergencies will arise are over. My blog here explains more. Obviously, the principle reason for this is that Spanish banks were drowning in bad debts and new mortgages were scarce. Only a massive bail-out from the European Central Bank prevented widespread collapse. One of the first questions I ask potential clients is whether they they are cash buyers or if they need finance. I do this because I believe it is better to get an indication of borrowing potential before I start a property search.

When the answer comes back that they are cash buyers I always ask if they are aware of the fixed rate mortgages currently available in Spain. Most are not. However, once they knew all my recent clients who had intended to buy with cash have opted to take the maximum they could borrow. Euribor is the interest rate which fixes most Spanish mortgages and it has been in negative territory since February After falling month on month throughout it closed the year slightly up from the historic low of It now stands at In the recession fixed rate mortgages disappeared from the market.

Indeed, the majority of international buyers are opting for fixed rate over variable rate loans. My advice to cash buyers, irrespective of the currency, is to protect their capital and take a Spanish mortgage. There are many products to chose from with fixed terms from 5 — 25 years, interest rates from 2. There are a lot of variables, such as country of residency, amount required, location of purchase. However, there are no restrictions on nationality or purchase price.

A good broker is essential. Status is scrutinised very carefully but in general the process is straightforward and quick. In the case of some of my clients we have even had banks competing for the business. It noted that Spanish banks are highly exposed to real estate sector developments and may underestimate the speed at which house prices and relaxed lending criteria can gain traction.

Also in December , I noted warnings from valuers about the spectre of overvaluations creeping back into the market. The loan is then offered on whichever is lower, the valuation or the property price.

They may be only a warning flag but they may also be the first signs of something more serious. Even more reason then for buyers to be very cautious, particularly in the new-build market.

It is essential to do the research and compare asking prices for new property with comparables in the resale sector. Look at peak prices prior to the crash and ask yourself if you should be paying even more than that now. Lots of soft focus life-style images, very seductive, but better to check the price per square metre and ask if it makes sense.

However, if you buy at the right price, Spanish property is still relatively affordable. The sun continues to shine and the quality of life is rated one of the best in the world. The lack of high-quality inventory at the right price in prime locations will be an issue throughout As far as the overseas market is concerned that means the Mediterranean coasts, the Balearics and the Canaries. My advice to buyers in is do not obsess about new-builds, especially if not located in prime positions.

Many are not. Consider equivalent resales, calculate the price per sq. Then you can take an informed view on what makes the best financial sense.

The result will almost certainly be a lower price, a bigger property and, most important of all, a superior location. A thorough search can still uncover some real deals although they will be harder to find in Nevertheless, there will always be some sellers more motivated and realistic than others.

If there is a mobile mast in view assume there will be more as the tendency is for them multiply. Electricity pylons are also a big no-no. We can assume new housing will increase in the medium term. Already, in some areas I can count twenty cranes while standing still. If there is vacant land nearby find out with absolute certainty what, if anything, can be constructed.

The selling agent saying it is green zone is just not good enough. Why risk losing a fabulous view? And finally, when I am assessing properties for my clients I always ask the following questions.

If circumstances change and they need to sell quickly is the price right to enable them to do that? Secondly, is this a property for which there will always be demand irrespective of market conditions? And that is that there will always be demand for top quality in prime locations.

It always has been, still is and always will be about location. And I, for one, will be waiting for the full-year number of overseas buyers in with even more interest than usual.

That statistic will tell us a lot. I update this Spanish Property Market report throughout the year as new data becomes available. You can also follow us on Twitter and Facebook for the latest news as it happens. Still in recovery mode from the meltdown, the Spanish property market faces more turmoil in the wake of Covid

978,000
* €/m2
122 m2 | 4 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
An in-depth analysis of the residential property market in Spain. Will the boom In Madrid, average house price rose by % to EUR per sq. m. In Galicia. It seems that it's either feast or famine in Spain's property market. Between 19the average youth unemployment rate was %, more or less​. Spain House Prices Data | Forecast | Historical | Chart | News. Summary; Forecast; Stats. Housing Index in Spain.

There were 24 consecutive quarters of y-o-y declines. Demand is slowing gradually. Home sales in Spain fell by 3. Learn what returns you are likely to earn, and where are the best opportunities.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Construction activity is weakening again, after reaching a seven-year high in During the first seven months of , the number and area of residential building permits fell by Foreclosures for new dwellings increased by In October , fixed rate mortgages represented The Bank of Spain expects economic growth to slow further to 1.

In fact, the European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Foreigners have a right to buy and resell all kinds of property - residential, commercial or land, with no limits. The boom ended abruptly in The housing slump battered the Spanish economy, and brought spiraling unemployment.

Developers were left with blocks of unsold properties and massive debts. In some places in Spain, but only for the smallest sized apartments, buying an apartment is now attractive from a yields perspective - a completely new situation for Spain.

Similar yields, or maybe slightly lower, can also be had in Madrid. All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination. The average price of urban land transactions in Spain rose by 4. Fourteen of the 17 autonomous communities where figures are available saw land price rises during the year to Q3 The number of land transactions fell by On the other hand, transactions of newly built houses increased slightly by 1.

Almost half of the autonomous regions and cities saw falling demand. During the first ten months of , Santa Cruz de Tenerife recorded the biggest fall in sales of There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Sports and outdoor enthusiasts are spoilt for choice.

I said in the introduction to this report that, in spite of lots more good news, the market is still patchy. Remember that these statistics only cover the first half of but I expect the full year figures will confirm the results so far. Cantabria welcomed just buyers from overseas in this period while Extremadura was the lowest with Then ask where the majority of those overseas purchasers buy for the explanation.

And the same patchy recovery pattern occurs within regions as well. And the same holds true for other regions as well. However, in the introduction to this report I highlighted the fall in the number of overseas buyers in the first half of Unscrambling the statistics shows 51, foreign nationals bought a property in Spain, compared with 53, in the same period in , On the other hand, when the first half of is compared with the second half of , the foreign buyer total actually rose by 2.

The decline in the Balearics is a bit more puzzling. One reason might be high prices. Also, Mallorca, the main market of the Balearics, has introduced very restrictive tourist rental laws and these may be responsible for the fall in overseas buyers.

Although not buy-to-let investors as such, many overseas buyers are keen to cover running costs via rentals when not in residence.

In spite of so much negativity on the part of many commentators and market analysts, almost willing the British market to collapse to back-up their argument, it is proving remarkably resilient.

The Germans were in 3rd place with 3, In market share terms the British made up However, these top 3 players all registered falls compared to the same period in There were In fact, there were only two groups from EU countries that increased, Ireland up 1. Nevertheless, some nationalities showed strong growth but they were all non-EU citizens.

Argentinians and Ecuadorians rose Buyers from the US rose Although there were fewer buyers from overseas spending per square metre was up in the most numerous nationalities.

The Norwegians went mad and increased average spend per square metre by Only the Irish, Italians and Danes spent less than the same period in But the real big spenders in were from the US. So, is the overseas market in Spain slowing down? Is demand falling? Is the supply side getting too big? Have prices risen too fast? Lots of questions and several answers, I think. In the case of the British, I think currency weakness is partly to blame. If sterling strengthens throughout I think British buyer numbers will increase once again.

However, I think there are other factors at play in the overseas market. In fact, I would go so far as to say that demand held up very well throughout , lots of people still wanting to buy a property in Spain. For reasons I have never quite understood, foreign buyers are like moths to a flame if new-build is available, even when the location is inferior.

The fact is there is very little raw building land available in the very best locations, it was built on years ago. Consequently, it follows that much of the new-build activity is not in prime locations.

However, since the recovery started the supply side of new apartments and houses lagged way behind demand. Inevitably, this imbalance skewed new-build prices, to an extent I believe was unsustainable.

New may be nice but is it worth paying double, or even more, per square metre than a resale? However, as more new-build projects come on stream, and the signs are that the pace is picking up, I think new-build prices will come under pressure. I predict buyers who purchased in early phases of some new developments will find their property is worth less than they paid by the time they get the keys.

In fact I think some buyers are paying such inflated prices for new build properties that they may never see a return on their investment no matter how long they hold it.

At the height of the building frenzy in Spain approved building licences for , units. This figure was more than the UK, France and Germany combined. In reality, the construction industry was more or less wiped out. Nevertheless, building licence approvals have grown year-on-year since The final total will be published in Spring Meanwhile, although Q1 and Q2 figures indicated a slowdown numbers picked up again heading into Q4.

With two months still to count in , 91, permits had been authorised across Spain. However, the biggest increases in new permits are in the Mediterranean coastal regions, precisely those locations favoured by overseas buyers. So the cranes are not spread evenly across Spain but are clustered in just a few regions and in just a few places within those regions. The same regional imbalances I highlighted earlier with regard to transaction numbers is duplicated in the construction sector.

As the supply side improves one would expect prices rises to moderate even if demand holds steady. On the other hand, if demand is actually falling, then new-build prices will be under serious pressure.

One thing for sure, no developer goes into a project expecting prices to fall during construction. The assumption is always that prices will rise phase by phase.

I think will give some of them quite a shock. Already, there are rumours circulating of developers delaying the launch of new phases as sales slow. Lack of well-priced, top quality properties in prime locations is also a feature of the current resale market.

However, available stock is more in balance with demand. In my experience they are much more likely to walk away than overpay. Look hard and there are still good deals available.

However, I have a problem with many asking prices. I feel sellers assume that just because new-build prices have gone through the roof they can ramp up their asking prices to similar levels. That assumption is incorrect in my view. As I started a search for a client at the beginning of I noticed that every house under consideration had been reduced from the original asking price.

When over-optimistic sellers reduce asking prices to more in line with what the market can stand, they sell. And in price per square metre terms that will be way below new-builds prices. Marbella, the sixth most expensive town in Spain, is a good example of the new-build versus resale price conundrum.

At the start of a client was negotiating to buy a detached villa. With 5 bedrooms, m from the beach, walking distance to town, and with the contemporary look that is so in demand.

Also at the beginning of I located a 2 bedroom townhouse, fully renovated to the highest of standards. However, it too had reduced from the original asking price before a buyer emerged For the same clients, I have just added a beachfront apartment to the short list. When I am researching the market for my clients I always do the price per square metre calculation to help me come to a conclusion about the asking price.

I told him it was a bit late for that, the time for price comparisons was in , not The fact is, shiny new stuff never trumps location. Seems the developer has licence problems.

However, buyers are already paying more than that per square metre just to get their hands on a new property. However, in my view that will be because new-build prices retreat, not because resale prices increase markedly. There is a close link between rental yields in Spain and the health of the Spanish tourism sector. Currently, Spain is the second most visited country in the world. Obviously, some will have their own homes, or stay with family and friends, but that leaves a serious number of overseas visitors renting privately.

As a result, rental yields make letting a property in Spain an interesting option. There is high demand for both long and short term rentals. What used to be considered luxury items, such as free wifi, flat screen t. There is just as much demand for smart two bedroom apartments in the right location. I thought property price rises would squeeze yields. In all cases, location and interior finishes are key.

It seems likely that demand for short-term holiday rentals is only going to increase. In , just before the global meltdown, Spain welcomed 59m overseas visitors, an all-time record. Learn what returns you are likely to earn, and where are the best opportunities.

Follow the latest developments in the international property markets through the Global Property Guide newsletter. Sign Up. Already Subscribed? Manage your subscription. Foreclosures stood at 11, dwellings in Q1 , down by In the first quarter of , the Spanish economy advanced 0. The economy is expected to grow by 2.

Urban land prices in Spain rose by 5. Quarter-on-quarter, urban land prices rose 3. Land transactions in Spain rose by 7. The boom ended abruptly in The housing slump has battered the Spanish economy, and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts. Uncertainty engulfed the market.

However, new dwelling sales declined by about During the first four months of , home sales in Spain rose by Foreign investors started to return to the Spanish property market in The Golden Visa scheme, fully applicable since 30th September , has resulted in increased interest not only from the Middle East but also from Asia and Russia.

Spain has received more than EUR million in foreign investment as a result. For several years prior to , low borrowing costs fuelled a speculative housing bubble in Spain, masked by the initial growth.

In April , the average mortgage rate in Spain stood at 1. Now this is turning around. Mortgages totals are still falling because of the large downturn in new grants during the crisis. In , the Spanish mortgage market contracted to about

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Statistics and prices of properties with pool in Spain

Prices are going up in this area.

Average price in this area: 1,257 €/m2

The cheapest property in this area: Rent to own detached house in Alcobendas, 0

The most expensive property in this area: Hotel for sale in Nueva Andalucía, Marbella, 65,000,000 €

Cheapest areas: Aragon, Castile and Leon, Estremadura

Most expensive areas: Melilla, Balearic Islands, Andalusia

Prices are going down in the areas: Madrid, Andalusia, Canary Islands.

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