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Costa Blanca Market Report Q3 2019

Table of Contents
COSTA BLANCA MARKET REPORT

Foreign investors bought 63,100 properties in Spain in the last 12 months.

Home sales have recorded the second consecutive quarterly decline in Spain, with a total of 123.260 transactions during the third quarter, which represents a reduction of 26.340 transactions from previous quarters, data from the Ministry of Development

According to the College of Registrars, the number of real estate transactions by foreigners in Spain amounted to 15,150.

British nationals continue to lead foreign purchases with a 14.27% of the total, maintaining figures at a very similar level to that of the previous quarter.

 

Quarterly property sales in Spain

(Q1 2004 –Q3 2019)

(Data from the Ministry of Development)

Prices remained at an average of €1,638.3 per m2, representing a quarterly increase in the IPVVR (from its Spanish “Prices Index of Repeatedly Sold Properties) of 0.84% and an interannual rate of 7.70%.

You can find out further details about this price evolution in our post “House prices in Spain rise by 0.84% during the Q3 of 2019“.

 

Price of property in Spain

(Q1 2004 – Q3 2019)

(Ministerio de Fomento data)

 

15,150 properties bought by foreigner nationals, Q3 2019

 

Evolution of no. of Spanish property purchases made by foreign buyers

(Q1 2013 – Q3 2019)

(Data from the Ministry of Development)

 

The purchase of housing by foreigners maintains similarly “healthy” levels to those registered in previous quarters, still representing a very prominent share of the Spanish residential market.

In percentage terms, foreign investment retained its traditional strength throughout the third quarter of the year – with a significant 12.55% -, exceeding figures recorded in earlier quarters (12.46% in the second quarter, 12.20% in the first quarter).

However, despite the percentage increase, the overall number of purchases experienced a reduction with just over 15,150 home purchases by foreigners in the third quarter, compared to more than 16,000 in the second. The reduction in the total number of sales justifies this percentage increase with a decrease in absolute terms.

British continued to lead foreigner purchases with a 14.27% of the total, followed by French nationals (8.38%), Germans (6.63%), Belgians (6.17%) and Moroccans (6.05%) .

Property purchase by foreign investors in the last twelve months totals a 12.46%, exceeding the 63,100 number of homes purchased in the previous year.

Purchases by main nationalities Q3 2019

(Data from Spanish Registrars)

Hover the mouse over the graph for more information

Overall, results appear stable, both in the general total and in the breakdown by nationalities.

This confirms foreign confidence in the Spanish property market.

 

Prices in Costa Blanca

House prices in Costa Blanca remain stable at an average of €1524.43/m2 – not far from the 1558.6, €/ m2 of the previous quarter.

The most remarkable price increase was recorded in Santa Pola (Q1 2019 -1348.1 €/ m2, Q2 2019 – 1296.8 €/ m2 and Q3 – 1376.2 €/m2) while Jávea suffered the biggest drop in prices (Q1 2019 – € 1800.2/m2, Q2 2019 – €1922.7/m2 and Q3 2019 – € 1771.6/m2).

Other localities in this region have hardly experienced any changes.

Costa Blanca Price – Peak & Trough

(Q1 2005 – Q3 2019)

(Data from the Ministry of Development)

 

*Costa Blanca South data formed from municipalities of Algorfa, San Miguel, Guardamar, Orihuela, Torrevieja, Pilar de la Horadada and Rojales.
Costa Blanca North data formed from municipalities of Villajoyosa, Altea, Alfaz del Pi, El Campello, Teulada-Moraira, Jávea, Denia, Calpe and Benidorm.

 

Costa Blanca Property Price Evolution

(Q4 2006 – Q3 2019)

(Ministerio de Fomento data)

 

Sales in Costa Blanca

Foreign demand behaviour has a more significant impact on the evolution of the real estate market in Costa Blanca given that foreign buyers represent more than 40% of total transactions.

The Balearic Islands remain foreign buyers’ preferred destination (28.17%), followed by the Valencian Community (25.86%), the Canary Islands (23.72%), Murcia Region (21.59%), Catalonia (12.79%) and Andalusia (12.01%).

Alicante (40.77%), Santa Cruz de Tenerife (32.64%), Malaga (28.88%), Balearic Islands (28.17%), Girona ( 27.59%) and Murcia (21.59%) are the provinces with the highest level of foreign purchases.

The following graphics show the consolidation of high demand for properties from foreign buyers in the most attractive tourist destinations.

 

Costa Blanca  Purchase  – Peak & Trough 

(Q1 2004 – Q3 2019)

(Data from the Ministry of Development)

 

 
*Costa Blanca South data formed from municipalities of Algorfa, San Miguel, Guardamar, Orihuela, Torrevieja, Pilar de la Horadada and Rojales.
Costa Blanca North data formed from municipalities of Villajoyosa, Altea, Alfaz del Pi, El Campello, Teulada-Moraira, Jávea, Denia, Calpe and Benidorm.

 

Comparison: Costa Blanca sales / Sales to foreign residents in Alicante province

Q1 2006-Q3 2019

(Data from the Ministry of Development)

Costa Blanca Sales 

Q1 2004 – Q3 2019

(Data from the Ministry of Development)

 

*Costa Blanca South data formed from municipalities of Algorfa, San Miguel, Guardamar, Orihuela, Torrevieja, Pilar de la Horadada and Rojales.
Costa Blanca North data formed from municipalities of Villajoyosa, Altea, Alfaz del Pi, El Campello, Teulada-Moraira, Jávea, Denia, Calpe and Benidorm.

 

New Build vs Resale in Costa Blanca

The division between new and second-hand property purchases remains unchanged when compared to recent years.

The average value of the real estate transactions by foreign resident in Alicante in the third quarter of the year for new construction is € 232,230.8 while resale is at €133,336.6, with an average for the two typologies of €149,478.84

 

Number of sales to foreign residents in Alicante province by property type

Q1 2006-Q3 2019

(Data from the Ministry of Development)

 

 

 

 

Average value of properties purchased by foreigners in Alicante province

Q1 2006-Q3 2019

(Average property transaction value (€), data from the Ministry of Development)

 

 

 

Investment by foreign residents in property in Alicante province

Q1 2006 – Q3 2019

(Data from the Ministry of Development)

 

 

 

For more data to be well informed, you can download our COSTA BLANCA PROPERTY MARKET REPORT 2018.

We want to help you navigate all the legal complexities that come with your home buying in Spain, but this article is legal information and should not be seen as legal advice.

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