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The average price of apartments in spain

9,363 results sorted by
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Sale (1,738)Rent to Own (965)New Construction (839)
304,000
* €/m2
Rental prices
292 m2 | 7 bedrooms | 7 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
In the rest of municipalities, house prices rose slightly by % to an average of €​1, per sq. m. Spain house price index region. Currently, the most expensive. A feature in Spanish rental market is the existence of stable number of rental houses at lower than market price prices (most public houses) and a substantial. We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more.

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1.

How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? The plan includes complete healthcare plus dental, with a small co-pay. Depending on how you choose to spend your money, your individual budget could be more or less than the one here. Likewise, you may choose not to have a maid, or to spend more on entertainment.

Learn more about Spain and other countries in our free daily postcard e-letter. Skip to content Cost of Living in Spain.

Your email address email Sign Up. There is a lot at stake depending on whether that average rental in Madrid is closer to than to 1, So who is right? Who is closer to the reality of what the Spanish pay for their rented apartment? Idealista adheres to figures month by month, while the Ministry has made an average of all , with what is possible that in recent months there is a price increase that does not reflect the ministerial body.

On the other hand, Idealista's are output data, not final price. It is what you would like to charge the owner.

There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority. They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed.

These ads for immovable expensive apartments increase the average price of the square meter of each city. The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer. In the case of Development it would be interesting to have both an analysis of monthly prices instead of annuals and by cities instead of provinces.

It would also be very useful to have the median rent in an area, and not simply the average.

379,000
* €/m2
Other areas
101 m2 | 7 bedrooms | 3 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
In the rest of municipalities, house prices rose slightly by % to an average of €​1, per sq. m. Spain house price index region. Currently, the most expensive. I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. Official figures for the real estate rental price in Spain, according to the Ministry of Development in a newsletter called the Housing and Land.

Before when you would buy a house, you would own it for a lifetime. Nowadays, personal situations and different work phases cause many to be forced to move from one place to another. The measures needed to boost Spain's rental market and lower rental prices The rise in the cost of renting in Spain is worrying not only politicians, but also the private sector. Faced with a lack of supply in some Spanish cities and an increase in demand, rental prices have risen faster than wages.

This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats. For that price, you get a first course generally a salad, soup, paella, or vegetable dish , a main course usually meat or fish, though vegetarian options are increasingly common , a beverage which can be beer or wine , bread, and often either dessert or coffee. In fact, if you like to eat out and many people do , your in-home grocery budget will likely be below this amount.

Because of the warm climate, many basic food items are inexpensive here— Spain produces a variety of fruits and vegetables both for domestic consumption and for export. In addition, many fruits and vegetables that are relatively gourmet items in North America—baby artichokes, cherimoya, and doughnut peaches, for example—are locally grown in Spain. Having a car is truly optional in Spain, saving you purchase and maintenance costs.

Spanish cities and villages are designed for walking, with most shopping centers easily accessible on foot. Contrary to what people think, in the housing market there is no more demand when the price is lower, but the other way around: there is more demand when the price is higher.

Both in the purchase and in the rent. This works like this, if I have an apartment and I see that the floors are low, I don't put it on rent because my profitability would be very low and I'm not interested. I would put it on rent when it is higher. Therefore, these portals are interested in both the purchase price and the rental price being very high, so that people are encouraged to buy or rent, and that is why their commercial activity grows when demand is on the rise and not at reverse.

So yes, they are interested in heating the market. There is very little information, and this market is especially opaque because there is a lot of money in black. For example, and according to a study prepared by flats. According to another survey for the INE , the percentage of households that live on rent already reaches a peak of Only from there and with an official registry of rental prices such as the one that already exists with the sale of real estate could the relationship of the average or medium rental price in each region be assessed with their salaries to know where it is more urgent to build public housing for rent or carry out some other type of public policies.

This article was written and published in Spanish and has been translated into English via Google Translate. Promotion: Who is right about the average price of rentals in Spain. Silvia Castro Betancourt. No Comments.

825,000
* €/m2
Cost of Living in Spain
274 m2 | 6 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, In the rest of municipalities, house prices rose slightly by % to an average of €​1, per sq. m. Spain house price index region. Currently, the most expensive. We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more.

Both in the purchase and in the rent. This works like this, if I have an apartment and I see that the floors are low, I don't put it on rent because my profitability would be very low and I'm not interested. I would put it on rent when it is higher. Therefore, these portals are interested in both the purchase price and the rental price being very high, so that people are encouraged to buy or rent, and that is why their commercial activity grows when demand is on the rise and not at reverse.

So yes, they are interested in heating the market. There is very little information, and this market is especially opaque because there is a lot of money in black. For example, and according to a study prepared by flats. According to another survey for the INE , the percentage of households that live on rent already reaches a peak of Only from there and with an official registry of rental prices such as the one that already exists with the sale of real estate could the relationship of the average or medium rental price in each region be assessed with their salaries to know where it is more urgent to build public housing for rent or carry out some other type of public policies.

This article was written and published in Spanish and has been translated into English via Google Translate. Promotion: Who is right about the average price of rentals in Spain. Silvia Castro Betancourt. No Comments. Points to believe in the real estate web portal First the Idealista version.

In addition, all autonomous regions registered price increases at some point during , although there were fluctuations. However, the fact is that, in spite of minor improvements, not that much changed in 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. This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats. Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain.

There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1.

716,000
* €/m2
Low Cost Living in Western Europe
180 m2 | 2 bedrooms | 5 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of %, leaving the average rental price per. 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 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. 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 Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9.

Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? So who is right? Who is closer to the reality of what the Spanish pay for their rented apartment? Idealista adheres to figures month by month, while the Ministry has made an average of all , with what is possible that in recent months there is a price increase that does not reflect the ministerial body.

On the other hand, Idealista's are output data, not final price. It is what you would like to charge the owner. There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority. They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed. These ads for immovable expensive apartments increase the average price of the square meter of each city. The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer.

In the case of Development it would be interesting to have both an analysis of monthly prices instead of annuals and by cities instead of provinces. It would also be very useful to have the median rent in an area, and not simply the average. Idealista could also include the latter statistic to his monthly publications.

444,000
* €/m2
298 m2 | 8 bedrooms | 6 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Official figures for the real estate rental price in Spain, according to the Ministry of Development in a newsletter called the Housing and Land. We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more. I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market.

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. 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. Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid?

Rental prices rise by 8. According to the report on rental prices published by idealista, all the autonomous regions in Spain recorded increases between January and March.

How to work out the price of a property Are you paying a fair price for your home in the sun, or is the owner being overly optimistic with the asking price? Try using these 5 parameters to find out….

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

950,000
* €/m2
187 m2 | 9 bedrooms | 7 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​. The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of %, leaving the average rental price per. Official figures for the real estate rental price in Spain, according to the Ministry of Development in a newsletter called the Housing and Land.

This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats. Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain.

There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9.

Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? Rental prices rise by 8.

According to the report on rental prices published by idealista, all the autonomous regions in Spain recorded increases between January and March. 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.

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. The Property Finders Relax… while we find your perfect property.

442,000
* €/m2
145 m2 | 5 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​. I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. Cost of living in Spain is one of the lowest in Western Europe, even in the cities. (​And the famous Spanish sunshine you get for free.) Leaving aside rent or.

In addition, Q2 and Q3 can be affected by delays over the summer holidays. And we are not talking a few percentage points out of sync. The Notaries counted , transactions in the first half of while, for the same period, Property Registries inscribed , purchases.

And all because Notaries count when a deal is done and Registries count inscriptions. So, unless otherwise stated, the property statistics quoted in this report are those from the Notaries.

I also post news on social media as it becomes available so follow The Property Finders on Twitter and Facebook. And as statistics are published in early to reflect full year results for I will update this report regularly. Overall, unemployment in Spain continues to fall. It finished on Interest rates remain low. Euribor, which sets the interest rate for the majority of Spanish mortgages, registered another historic low in August but ended the year slightly better at The prediction is that it will remain negative throughout In addition, all autonomous regions registered price increases at some point during , although there were fluctuations.

However, the fact is that, in spite of minor improvements, not that much changed in 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. Faced with a lack of supply in some Spanish cities and an increase in demand, rental prices have risen faster than wages.

This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats.

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9.

Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? Rental prices rise by 8.

219,000
* €/m2
273 m2 | 4 bedrooms | 6 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
A feature in Spanish rental market is the existence of stable number of rental houses at lower than market price prices (most public houses) and a substantial. I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2,

Idealista adheres to figures month by month, while the Ministry has made an average of all , with what is possible that in recent months there is a price increase that does not reflect the ministerial body.

On the other hand, Idealista's are output data, not final price. It is what you would like to charge the owner. There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority.

They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed.

These ads for immovable expensive apartments increase the average price of the square meter of each city. The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer.

In the case of Development it would be interesting to have both an analysis of monthly prices instead of annuals and by cities instead of provinces.

It would also be very useful to have the median rent in an area, and not simply the average. Idealista could also include the latter statistic to his monthly publications. In reality there are very few people, on the total rental housing, who deposit the bonds in public bodies. Contrary to what people think, in the housing market there is no more demand when the price is lower, but the other way around: there is more demand when the price is higher. Both in the purchase and in the rent.

This works like this, if I have an apartment and I see that the floors are low, I don't put it on rent because my profitability would be very low and I'm not interested.

I would put it on rent when it is higher. Therefore, these portals are interested in both the purchase price and the rental price being very high, so that people are encouraged to buy or rent, and that is why their commercial activity grows when demand is on the rise and not at reverse. So yes, they are interested in heating the market. There is very little information, and this market is especially opaque because there is a lot of money in black.

For example, and according to a study prepared by flats. This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats.

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid?

Rental prices rise by 8. According to the report on rental prices published by idealista, all the autonomous regions in Spain recorded increases between January and March.

622,000
* €/m2
171 m2 | 1 bedrooms | 2 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
A feature in Spanish rental market is the existence of stable number of rental houses at lower than market price prices (most public houses) and a substantial. Cost of living in Spain is one of the lowest in Western Europe, even in the cities. (​And the famous Spanish sunshine you get for free.) Leaving aside rent or. Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2,

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid?

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. 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. Because of the warm climate, many basic food items are inexpensive here— Spain produces a variety of fruits and vegetables both for domestic consumption and for export.

In addition, many fruits and vegetables that are relatively gourmet items in North America—baby artichokes, cherimoya, and doughnut peaches, for example—are locally grown in Spain. Having a car is truly optional in Spain, saving you purchase and maintenance costs. Spanish cities and villages are designed for walking, with most shopping centers easily accessible on foot.

For longer distances or bigger shopping trips , public transportation is readily available. Excellent bus and train service gets you quickly around town or around the country.

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I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of %, leaving the average rental price per. Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2,

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. The plan includes complete healthcare plus dental, with a small co-pay. Depending on how you choose to spend your money, your individual budget could be more or less than the one here.

Likewise, you may choose not to have a maid, or to spend more on entertainment. Learn more about Spain and other countries in our free daily postcard e-letter. Skip to content Cost of Living in Spain. Your email address email Sign Up. This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats.

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1.

630,000
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235 m2 | 4 bedrooms | 6 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, The report found that the rental prices have increased at a “significantly” faster rate than housing costs. The rising cost of rent is hitting low-income.

There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority. They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed. These ads for immovable expensive apartments increase the average price of the square meter of each city.

The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer. In the case of Development it would be interesting to have both an analysis of monthly prices instead of annuals and by cities instead of provinces.

It would also be very useful to have the median rent in an area, and not simply the average. Idealista could also include the latter statistic to his monthly publications. In reality there are very few people, on the total rental housing, who deposit the bonds in public bodies.

Contrary to what people think, in the housing market there is no more demand when the price is lower, but the other way around: there is more demand when the price is higher. Both in the purchase and in the rent. This works like this, if I have an apartment and I see that the floors are low, I don't put it on rent because my profitability would be very low and I'm not interested. I would put it on rent when it is higher.

Therefore, these portals are interested in both the purchase price and the rental price being very high, so that people are encouraged to buy or rent, and that is why their commercial activity grows when demand is on the rise and not at reverse. So yes, they are interested in heating the market.

There is very little information, and this market is especially opaque because there is a lot of money in black. For example, and according to a study prepared by flats. According to another survey for the INE , the percentage of households that live on rent already reaches a peak of Only from there and with an official registry of rental prices such as the one that already exists with the sale of real estate could the relationship of the average or medium rental price in each region be assessed with their salaries to know where it is more urgent to build public housing for rent or carry out some other type of public policies.

This article was written and published in Spanish and has been translated into English via Google Translate. 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. 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

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Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. Official figures for the real estate rental price in Spain, according to the Ministry of Development in a newsletter called the Housing and Land.

I want a bigger house: Is it better to sell and buy a new one or rent? Before when you would buy a house, you would own it for a lifetime. Nowadays, personal situations and different work phases cause many to be forced to move from one place to another. The measures needed to boost Spain's rental market and lower rental prices The rise in the cost of renting in Spain is worrying not only politicians, but also the private sector.

Faced with a lack of supply in some Spanish cities and an increase in demand, rental prices have risen faster than wages. This is what each Spanish political party wants to do about housing in Spain The centre-left PSOE party has won the Spanish general election with seats. Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain.

Spanish cities and villages are designed for walking, with most shopping centers easily accessible on foot. For longer distances or bigger shopping trips , public transportation is readily available. Excellent bus and train service gets you quickly around town or around the country.

In many cities you can buy either a monthly transport pass or a ride ticket for buses and metros. And from age 60 on, you begin qualifying for retiree fares, which cut long-distance travel costs substantially.

Keep in mind that Spaniards, like many Europeans, are used to smaller living spaces than North Americans are used to. The plan includes complete healthcare plus dental, with a small co-pay.

Depending on how you choose to spend your money, your individual budget could be more or less than the one here. Likewise, you may choose not to have a maid, or to spend more on entertainment.

308,000
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The Property Finders
168 m2 | 4 bedrooms | 6 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more. A feature in Spanish rental market is the existence of stable number of rental houses at lower than market price prices (most public houses) and a substantial.

This gigantic difference in results in what the rental costs to the Spaniards is not a trivial matter. Since so far, Spain has not had official price indices, it is logical that the latest study on access to housing of the Bank of Spain has been based entirely on Idealista data, and all this has an impact when taking public policy decisions.

There is a lot at stake depending on whether that average rental in Madrid is closer to than to 1, So who is right? Who is closer to the reality of what the Spanish pay for their rented apartment?

Idealista adheres to figures month by month, while the Ministry has made an average of all , with what is possible that in recent months there is a price increase that does not reflect the ministerial body. On the other hand, Idealista's are output data, not final price. It is what you would like to charge the owner.

There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority.

They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed. These ads for immovable expensive apartments increase the average price of the square meter of each city. The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer.

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. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain.

There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? Rental prices rise by 8.

355,000
* €/m2
127 m2 | 5 bedrooms | 10 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
I will look at prices and my concerns about the amount of new construction in the pipeline. It seems that it's either feast or famine in Spain's property market. A feature in Spanish rental market is the existence of stable number of rental houses at lower than market price prices (most public houses) and a substantial. We examined the regional breakdown of the average price of a houses in Spain and European Union per square metre. Learn more.

Between and , the number of sales increased, as did rental prices. Island for rent for 20 thousand a night in Spain Yes, you read that right — you can actually rent an island in Spain. There is no property bubble: rental prices drop in Barcelona and are stable in Madrid The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of 9. Spanish rental prices drop by 1. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid?

Rental prices rise by 8. According to the report on rental prices published by idealista, all the autonomous regions in Spain recorded increases between January and March. How to work out the price of a property Are you paying a fair price for your home in the sun, or is the owner being overly optimistic with the asking price?

However, for the first time since , the notarial statistics do show a reduction in the number of foreign buyers when compared to the same period in , a decline of 3. The question is, are we seeing a slowdown in the overseas market?

Is it just a blip after five years of continuous growth or is it something more serious? Interestingly, the domestic market also declined in the first half of , down 2. However, this sector has performed very differently since the crash.

By this time, however, the overseas market was already two years into recovery. This report looks at who is buying what and where mainly from the perspective of the overseas market.

I will show that market activity is patchy, concentrated in just a few regions. I will look at prices and my concerns about the amount of new construction in the pipeline. Supply in the new-build sector has gone from just a trickle a couple of years ago to a flood in The taps have been turned full-on and I think this is a worrying trend in the market. In addition, I will also cover factors that may impact the Spanish domestic market in I cite statistics and opinions from a variety of sources published throughout the year.

The Notaries produce the most reliable property market statistics. Consequently, I use those and ignore the Property Registries. Unfortunately, the INE and many commentators and analysts use both.

There are discrepancies between the two for the simple reason they are not counting the same thing. On the other hand, the figures from the Property Registries reflect when that same purchase is inscribed in the registry. And that may be weeks, or even months, later. A purchase completed in a November or December may not make it into the registry until the following year.

Consequently, Q1 and Q4 totals can be very distorted. In addition, Q2 and Q3 can be affected by delays over the summer holidays.

And we are not talking a few percentage points out of sync. The Notaries counted , transactions in the first half of while, for the same period, Property Registries inscribed , purchases. And all because Notaries count when a deal is done and Registries count inscriptions. So, unless otherwise stated, the property statistics quoted in this report are those from the Notaries. I also post news on social media as it becomes available so follow The Property Finders on Twitter and Facebook.

And as statistics are published in early to reflect full year results for I will update this report regularly. Overall, unemployment in Spain continues to fall. It finished on Interest rates remain low. Euribor, which sets the interest rate for the majority of Spanish mortgages, registered another historic low in August but ended the year slightly better at The prediction is that it will remain negative throughout In addition, all autonomous regions registered price increases at some point during , although there were fluctuations.

However, the fact is that, in spite of minor improvements, not that much changed in 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.

245,000
* €/m2
152 m2 | 2 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Market view. info. Average price1, €/month. +34 € + % from 25/05/ Price per m2 Number of properties. 2, The rate of growth of the price of rented housing softened in Spain in and ended the year with an increase of %, leaving the average rental price per. Cost of living in Spain is one of the lowest in Western Europe, even in the cities. (​And the famous Spanish sunshine you get for free.) Leaving aside rent or.

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. How much does it cost to buy and rent a house in the coolest neighbourhood on the planet which is in Madrid? Rental prices rise by 8. According to the report on rental prices published by idealista, all the autonomous regions in Spain recorded increases between January and March.

How to work out the price of a property Are you paying a fair price for your home in the sun, or is the owner being overly optimistic with the asking price?

Try using these 5 parameters to find out…. Since so far, Spain has not had official price indices, it is logical that the latest study on access to housing of the Bank of Spain has been based entirely on Idealista data, and all this has an impact when taking public policy decisions. There is a lot at stake depending on whether that average rental in Madrid is closer to than to 1, So who is right?

Who is closer to the reality of what the Spanish pay for their rented apartment? Idealista adheres to figures month by month, while the Ministry has made an average of all , with what is possible that in recent months there is a price increase that does not reflect the ministerial body.

On the other hand, Idealista's are output data, not final price. It is what you would like to charge the owner. There are many articles in the press in the last two years about the adventure of hiring a rental without being lifted in less than 24 hours, or with owners who ask for unassuming amounts of bail for the majority. They also point out that the statistics of the Ministry are incomplete because of the huge amount of rent in black that exists, and that logically it is not included in the report of the ministry but that it can be seen in the Idealista or Fotocasa ads.

But, as sources in the sector point out, Idealista's average is also falsified. The portal averages the active ads on the page, and does not take into account the entire volume of floors at an excessively high price but that is not placed. These ads for immovable expensive apartments increase the average price of the square meter of each city.

The same price increase causes the luxury flats of the big cities, which normally remain longer offered until they find a buyer. In the case of Development it would be interesting to have both an analysis of monthly prices instead of annuals and by cities instead of provinces.

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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: 1,457 €/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.

More statistics and trends...