Spanish house prices record biggest yearly rise since 2007
High net worth individuals contemplating whether now is the right time to realise their Marbella property dream may be interested to read that as reported by the English-speaking free Spanish newspaper EuroWeekly News, last year saw the values of homes in the country record their steepest rise since 2007.
According to the complete figures now available for 2016, prices increased by a healthy 4.7%, which was not only far above the European average, but also the biggest rise since the 9.8% managed in 2007. It marks quite the turnaround in the space of just a few years, with prices having fallen by 13.7% in 2013.
The average value per square metre of Spanish homes is also looking good, having reached €1,512 as of the end of 2016. But with the peak of this measure having been €2,101 back in 2008, there’s still plenty of scope for that figure to rise further for the benefit of those purchasing property in the in-demand parts of the Costa del Sol served by IQ Marbella.
New builds are becoming especially popular
Just one of the many interesting aspects of the performance of the Spanish property market last year was how well new homes fared.
The value of such properties increased by 6.5%, with Nigel Salmon, the managing director of one leading property agent for the Spanish market, observing that “while old farmhouses and fixer-uppers are still being bought and sold, the strong demand in 2017 is for newly-built properties and for opportunities to design and build your own unique Spanish home.”
Salmon attributed the burgeoning popularity of new builds to a range of factors, including their high quality and the ease of finding a tenant for them if the owner wished to let the property. Indeed, he added that such properties also commanded higher rents.
He also noted changes in the kinds of homes now being built in the country: “It used to be that new homes in Spain were largely designed to recreate a particular idea of traditional Spanish living, which you would see in the details such as the choice of tile and flooring, and so on.
“However, there’s a growing gap between older properties and the new-builds. We’re seeing more modern design and decor... [with] a growing desire for cleaner lines, more minimalist styling, something altogether more Northern European.”
Good omens for 2017
Data from the National Institute of Statistics shows that 362,182 home sales were recorded on the Spanish property register last year, which marked a 14% increase on 2015 and a 7% month-by-month rise. This represents the biggest increase in home sales since the period leading up to the previous real estate boom.
The news prompted another key industry observer, Mark Stucklin of Spanish Property Insight, to point out that the market had now expanded for three consecutive years after bottoming out in 2013, with the last two years having each seen double-digit annual growth.
Stucklin added that “small investors are moving out of cash and deposits and into property, and this trend will probably continue in 2017. So 2016 was a year of positive news for the market in terms of sales, and 2017 should be more of the same”.
Discerning clients considering the most luxurious homes in Marbella could hardly hope for a more favourable set of conditions. Steady, but moderate rises in both sales and prices point to a property market recording genuinely sustainable growth.
Furthermore, if the high net worth investor wishes to ensure they make the best possible choice of property when purchasing in Marbella, they would struggle to find a better choice of partner than IQ Marbella, which gears its services specifically towards the needs of ‘top end’ buyers. Enquire now if you are such a purchaser looking to make the right investment in this area of Andalucía.