Compared with September 2016, transactions of Spanish resale properties increased by 9.6%, while sales of new-build apartments soared to show growth of 17.7% year-on-year, according to the National Institute of Statistics (INE).
Overall, the sale of housing in Spain shows moderated growth of 11%, down five points than that of August 2016 (+ 16%), despite the last five consecutive months of increases in transaction volume.
The INE reported that the sale of Spanish real estate was up 11% in September this year, representing an additional 38,610 transactions. Resale transactions increased by 9.6% in September 2017 in relation to the same month of 2016, to total 31,557. Meanwhile, the purchase and sale of new properties has continued to boom in Spain as construction picks up, increasing by almost 18% year-on-year, to 7,053 transactions.
Regional Variation Reflects increased Tourism
In terms of where property transaction volume has achieved the biggest increase, it is clear to see that Spain’s continuing popularity with international tourists is reflected in the statistics. Andalucia shows the highest number of property sales per 100,000 inhabitants, with Madrid and Catalonia in joint second place. Andalucia carried out 7,215 real estate operations, with Madrid and Catalonia completing 6,146 transactions each.
The regions showing the lowest volume of property sales were La Rioja (215), Navarra (398) and Cantabria (501). The communities with the highest increases were Castilla-La Mancha (+ 44%), followed by Murcia (+ 27%) and Extremadura (+ 24.2%). According to INE data, the number of purchases of rural properties increased by 3.9% in September 2017 to a total of 9,935 operations, while the purchases of urban properties increased by 8.2 %, up to 64,175 transactions.
Luxury Property Market Booms as Wealthy Buyers Choose Spain
Luxury house prices in Spain shot up by 7% in the first half of 2017 according to the INE, and now average €6,500 per square metre, which is more than four times the national average property price. The significant increase in the price of prime real estate in the country is especially pronounced on the country’s coastal expatriate hotspots.
The Mediterranean stretch from Cadiz to Barcelona is both a hive of luxury homes, and the place were mansions, villas, and grand estates sales are performing especially well. The situation is mirrored on the Balearic Islands. Mallorca, which boasts four of Spain’s top ten most expensive properties, registered a 10% increase.
Spain’s twin cosmopolitan cities, Madrid and Barcelona, showed an increase of more than 10% in luxury housing. In particularly dynamic neighbourhoods, price growth of almost 20% was registered.
Buyer Confidence is on the Rise in Spain
With the market enjoying greater security, investors in luxury housing now trust Spain as a country with highly profitable assets and sellers are also finding it easier to find wealthy buyers willing to splash out on luxury homes. In popular coastal areas, homes priced at more than €1 million are frequently selling in less than three months.
Research shows that French investors are the fastest to snap properties up, usually completing the purchase within two months and visiting the property only two to four times. Brits take three months and five visits and the Chinese are the slowest, taking an average of nine months and 15 visits to make a decision, possibly because of their non-EU status.