Spain back and forth – What does 2015 have in store for the Spanish property market?
- Asking prices up 7% (Kyero Q3 2014 House Price Index)
- Foreign buyers account for 1 in 5 Spanish property transactions (General Council of Notaries)
- Domestic demand tipped to drive Spanish property market during 2015 (Kyero)
Spain’s real estate sector has come a long way in 2014. Property asking prices have risen by 7% across the country, according to leading property portal Kyero, while the prestigious homebuilder Taylor Wimpey España has observed increasing confidence in the market as investors and foreign buyers rush in to snap up bargains.
With 2015 on the horizon, the future of the Spanish property sector is under particular scrutiny as analysts look to learn lessons from the past 12 months and understand how the market will develop into the year ahead.
While some areas of Spain continue to feel the hangover from the economic crisis, other are experiencing strong demand. Taylor Wimpey España’s Marc Pritchard observes,
“Coastal areas and those offering top class sporting experiences such as the golf courses of the Costa del Sol have seen a definite upturn in terms of enquiries and sales during 2014. High quality developments with communal pools have attracted particular interest, with both property investors and second home owners keen to take advantage of Spanish bargains. There has been a fresh optimism in the market this year.”
Kyero’s Martin Dell echoes the sentiment,
“Confidence is up and the market is improving in an increasing number of locations. Foreign buyers have contributed hugely, accounting for a record proportion of overall sales, which has helped to stimulate the market and move it away from stagnation.”
Figures from the General Council of Notaries back up Kyero’s observations. During Q2 2014 foreign buyers accounted for 11.9% more private housing acquisitions than during the same period a year earlier, representing 20.4% of all purchases made during the period.
Both Kyero and Taylor Wimpey España are agreed that this should impact positively on 2015. Marc Pritchard comments,
“The increase in foreign buyers that we have seen this year has got the Spanish property sector motoring once more. With this newly optimistic market, we expect to see domestic demand pick up during 2015, with significant price recovery in well located properties, such as those in large cities or popular tourist areas.”
“Price recovery in 2015 is going to be strongest in those areas that have been attracting foreign buyers during 2014,” adds Kyero’s Martin Dell. “Our data has shown a clear correlation between asking prices and the areas in which foreign buyers are active. Investors and those picking up second homes are turning prices around. With general economic improvements in Spain, as well as increasing employment and better access to credit, 2015 should see the Spanish domestic market given room to grow again.”
The property experts’ conclusion is simple – those looking to pick up bargain second homes in Spain need to act sooner rather than later, with prices expected to show some strong upward movement during 2015.
For more information please contact:
Taylor Wimpey España:+44 8000 121 020 or www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.
Kyero.com:www.kyero.com