Spain’s prime residential property market is still being heavily driven by international purchasers
Spain’s prime residential property market is still being heavily driven by international purchasers. Mainly they are attracted by the country’s current low prices, investment opportunities, and of course the wonderful lifestyle, according to a new report.
There are the strongest signs yet that the market is about to reach the bottom, with one set of official figures showing prices decreasing just over 1% overall in 2013 compared to 2012.
Spain’s official House Price Index published by the National Institute of Statistics, based on data from the Notaries, fell by 7.8% in 2013, down for the sixth year in a row but the annualised declines of 2013 were an improvement on the year before, when house prices fell 12.8%.
According to Mark Stucklin of Spanish Property Insight, the data seems to suggest that the crash in property values is starting to peter out after six grinding years of falls. We have certainly seen so far this year at KMS Property properties being sold for full asking price which has been a rare sight for these past few years.
At the more exclusive end of the market, sales have improved vastly, and once this starts escalating down into other sectors, Spain will at long last start to see a property market recovery.
Buyers are driving residential sales aided by the golden visa scheme which grants automatic residency to non-European Union citizens who invest €500,000 or more in Spanish property. This has attracted a growing number of residency investors thanks to the golden visa scheme, mainly from the Far East, the Middle East and Russia especially in Marbella. While the majority of buyers in the Marbella area are still from Northern Europe and the UK, the greatest growth markets for enquiries and property viewings came from the Far East market.
On another positive note, resale asking prices were stable in February, according to data from Idealista, one of Spain’s largest real estate portals. Prices remained more or less unchanged on a monthly basis.
The good news is that the increase in sales transactions demonstrates buyer confidence is back in the Spanish real estate market, and there is a general feeling amongst international investors that the market has bottomed out and is on the upward turn for the better.