Where’s hot in Spain right now? The highs and lows of the Spanish property market
- Properties purchased with mortgages up 35% (Spanish notaries)
- National average property asking price at €232,000 (Kyero)
- Property in Zaragoza priced at just 16% of national average (Kyero)
Spain’s property market looks headed for better times. Spanish notaries reported a 35% increase in residential property purchases made with mortgages in November 2014, compared with one year earlier. At the same time, interest from foreign buyers looking to pick up bargain second homes remains high, particularly from UK buyers enjoying the current strength of the pound against the euro.
Improved access to finance combined with numerous experts agreeing that the base, so far as property prices are concerned, has been reached has certainly buoyed the market in recent months. Figures from Eurostat reveal that prices reached their baseline during H1 2014 before starting their climb again. Q3 2014 saw an increase of 0.3% in prices across Spain, while prices in the Eurozone rose by 0.5%. Figures from the ST Sociedad de Tasación confirmed this positive news, showing a rise of 1.3% in the value of the average Spanish home in Q4 2014.
Despite prices having dipped to their reported lowest, not every location in Spain offers the property bargains that one might expect as Martin Dell, Director of leading Spanish property portal, Kyero.com, which lists more than 175,000 homes from 2,500 estate agents, comments,
“There are some huge variations in residential property prices as you travel across Spain. Kyero’s Spanish House Price Index Q4 2014 revealed prices ranging from 260% above the national average all the way down to a location where prices are just 16% of the average.
“It means that buyers looking for good value properties need to be choosy about the areas they are considering. Buying on Fuerteventura, for example, can get you a property for just 68% of the national average price, while Mallorca will cost you 180% more than the average. ”
So where’s hot in Spain right now according to Kyero.com?
At the very top end of the scale is, perhaps unsurprisingly, the perennially popular province of Barcelona, with prices 260% above the national average (€602,500 against an average of €232,000).
Mallorca sits in second place, but a surprise entrant at third place is the Catalonian province of Girona, which is more expensive than Menorca, Malaga and Lanzarote. Prices in Girona currently stand at 161% above the national average. An elegant five bedroom, four bathroom house with infinity pool in Girona can currently command an asking price of €850,000.
Another surprise was the inclusion of Pontevedra in Galicia, where prices are currently 113% above the average. Relatively unknown by those outside of Spain and Portugal, Pontevedra is a working city with a strong services sector and a small industrial presence where tourism is gradually increasing. Despite the high prices, there are still some excellent deals to be had in the city, such as this one bedroom, newly built apartment for just €34,400.
Sitting bang in the middle of the league table, with prices matching the national average, is the delightful coastal province of Cadiz. A charming blend of old town eateries (with some incredible tapas options) and modern shopping streets, Cadiz is a popular holiday destination for those looking to sun themselves on the beach but still have access to the conveniences of the city. A three bedroom, two bathroom apartment close to the beach can be had for €216,000 (reduced from €237,000).
Looking at areas where prices are below the national average, the pretty coastal province of Almeria comes in at just 58%, with average prices of €133,500 and offers a lovely alternative to the Costa del Sol. For that price (well, €134,000) buyers can get a two bedroom bungalow with roof terrace by the sea on a newly built complex with numerous pools (one heated), a Jacuzzi, a children’s playground and sports facilities. The price even includes fully installed air conditioning and a furniture pack.
For the very best Spanish bargains on the market at the moment though, buyers need to head to Zaragoza, where prices sit at just 16% of the national average. Famous for its gastronomic offerings and stunning architecture, the area has many plots of land for sale, with farmhouses in various states of disrepair for those with a vision and time on their hands. This village house, spread across four floors, is perhaps one of the most interesting, but to say it needs a bit of work is something of an understatement. However, with a sale price of just €16,000, it could offer an incredible value home packed full of character to a buyer willing to get their hands dirty and commit to a serious renovation project.
The variations that currently exist in the Spanish market make it the ideal time to purchase property there. Even if a buyer’s preferred destination comes in over budget, a little creative thinking and searching on Kyero.com can turn up a perfect alternative.
For more information and to keep up to date with the latest in Spanish property trends, visit www.kyero.com.