June sees Spanish property sales reach almost nine-year record
The Spanish government’s central statistics unit has just published its latest set of figures on the country’s residential property market, and it all makes very sweet reading for those who have recently purchased a Marbella property or are contemplating doing so.
Not only was there another increase in sales activity in Spain in June, but all 17 of the country’s regions saw rises, indicating a property market recovery that has spread throughout the entire country. As reported by Murcia Today, 44,135 sales and purchases were registered during the month, which is a 19.3% jump on the same month in 2016.
Furthermore, the national total was just 600 fewer than the figure for May, when property sales hit a nine-year high and increased in all but three of Spain’s 17 regions.
2017 is already comparing extremely well to 2016
While property market observers often warn against drawing too many conclusions from a single month’s data, the great similarity between June’s statistics and those for other recent months suggests a strongly sustained recovery in the national property market.
The cumulative number of sales for the first six months of 2017, in fact, is 13.2% higher than last year’s equivalent figure at 235,000. The running 12-monthly total, meanwhile, is now 12.1% up on a year ago, at 432,000.
All of this should make it highly unsurprising that confidence in the market’s prospects in the months ahead is also on the rise. The research division of the Spanish bank BBVA, for example, has signalled that it expects home sales in 2017 to be 10% higher than last year.
The bank has also forecast that prices will go up by 3% on average this year to €1,570 per square metre, which would return values to their 2004 level. However, there is likely to be much regional variation, with Marbella among the areas best-placed to see a big jump in sales and prices.
A property market that is recovering nicely
Everywhere one presently looks, it seems that the overall impression is of a strongly resurgent property sector throughout Spain. When – according to data for sales recorded in the Land Registry – the number of transactions went up by a quarter in May compared to the same month last year, it represented the first time monthly sales had passed the 40,000 mark since September 2008.
Data from Spanish notaries, meanwhile, indicates a 17.5% increase in sales in the country in May compared to the same point last year. The Notaries’ Association has reported growth in home sales almost every month since the start of 2014, with May’s figures indicating that this trend remains undimmed.
Even offshore banks are looking to get in on the boom
Such has been the Spanish property market’s renaissance in recent times from the lows of the late 2000s and early 2010s amid the global financial crisis, that offshore banks are also looking to boost their investment in the country – to the benefit of prospective high net worth purchasers.
As Daniel Howarth, Co-Head of international mortgage broker Enness International was quoted as stating by The Olive Press: “Following a significant period of uncertainty in the Spanish property market, we are now seeing growth, with both property prices and demand increasing.
“As well as a growing demand for property, we are also seeing an improved appetite from banks to lend in the region, thanks to sustained growth in property prices in prime investment locations such as Madrid, Barcelona, Marbella and the Balearics.
“This coupled with a healthy yield and increasing ‘occupier demand’, is enticing offshore banks to invest in lending platforms to accommodate existing and prospective clients looking to buy there.”
Could you be the latest high net worth investor to take advantage of such auspicious conditions in which to purchase Marbella property? Allow our seasoned professionals here at IQ Marbella to assist you in your search for the ideal abode in this immensely desirable part of the Costa del Sol.