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Consumer confidence and property prices rise hand in hand in Spain, as growth rate reaches highest level for 10 years

Consumer confidence and property prices rise hand in hand in Spain, as growth rate reaches highest level for 10 years
  • Property prices up 5.4% in year to April 2018 (Tinsa)
  • New home growth picked up sharply towards end of 2017 (ST Sociedad de Tasación)
  • Balearic homes attracting particular interest (Taylor Wimpey España) 

A new report from the ST Sociedad de Tasación, one of the largest real estate valuation firms in Spain, has shown that the average price of new and second hand residential properties in Spain increased by 4.3% over the course of 2017. New home growth picked up significantly during the second half of the year, rising to 2.3% from a rate of 1.7% for the first six months of 2017. The company’s Confidence Index has also ticked upward, with confidence increasing in the first quarter of 2018.

Figures from Tinsa reveal that the trend has continued into 2018. The price of new and second hand housing was up by 5.4% in the year to April 2018. It is the highest growth rate since Q3 2007, according to Tinsa.

Price growth in the Balearics has been particularly high, at 5.6% in the year to April 2018. Leading Spanish home builder Taylor Wimpey España reports that demand is also strong, with Mallorca properties proving particularly popular.

“We’ve seen some excellent growth in the Spanish property market over the past year, with metropolitan areas and the Balearic and Canary Islands faring particularly well. Not only are prices rising, but also consumer confidence and satisfaction, which is excellent news for the market as a whole.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Customer satisfaction stood at 100% for the most recent month (March 2018) for Taylor Wimpey España’s Balearic properties, having remained well above 95% since late 2017. With resorts such as Marina Golf available, it’s easy to see why. The modern, Mediterranean-style village complex offers three-bedroom homes with south-west-facing private terraces and gardens, all surrounded by some of the islands top golf clubs. A generously proportioned communal pool with solarium area and golf course views, and delightful landscaped gardens, complete the offering. The last homes on the development are now key-ready, with prices starting at €549,000.

Acquamarina

Also popular on the island is Acquamarina, a collection of two-bedroom apartments just 1 km from the sea and 6 km from the nearest golf course. Mallorca is a popular destination for golfers as well as for cyclists and, of course, water sports and beach lovers.

Spain’s economy does well from foreign property buyers, who are drawn to locations such as Mallorca for both second homes and primary residences. Visitor numbers were up 6% (to 13.7 million) in the year to March 2018, according to the National Institute of Statistics (INE). The number of foreigners registering with Spain’s social security system was also up, by 8.1% over the course of 2017.

“Spain’s myriad attractions mean that it remains a popular choice for those looking for a better lifestyle, from families with young children to retirees. Brits in particular have a long-standing love of Spain, making up the largest proportion of visitors from any single country and the key buyer group for foreigners purchasing Spanish homes. With price-growth at a ten-year high, we expect 2018 to be a very strong year for the Spanish property market.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

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