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SPAIN AND COSTA DEL SOL RESIDENTIAL PROPERTY MARKET REPORT Q1 2017

Once a quarter, Terra Meridiana compiles a report on the Spanish residential market, focusing especially on the Costa del Sol. We draw on data from official sources to provide buyers and sellers with clear information about the marketplace, as well as our opinion about what the changes may mean.

We use statistics published by Notaries, Registrars, the National Statistics Institute (Instituto Nacional de Estadística, INE), and the Ministry of Public Works (Ministerio de Fomento) to track trends and bring out some of the most revealing facts and figures about the Spanish and Costa del Sol markets.

Housing sales across Spain increased by 26.8% in Q1, compared to Q4 2016

According to monthly data from the Registrars, in the first quarter of the year, a total of 114,528 residential properties were sold across Spain, a jump of almost 27% in comparison with the last three months of 2016. This represents the highest first-quarter figure since 2011. Demand for both resale and new properties was strong, with nearly 19% of all homes sold nationwide located in Andalusia.

Terra Meridiana’s view: We were pleasantly surprised to see such a large gain in the first quarter of 2017, especially considering the lingering uncertainty among British buyers before the Brexit negotiations got underway. The province of Malaga witnessed quarterly growth of well above 20%, indicating solid interest in the marketplace from both national and overseas buyers.

The volume of sales has varied greatly in our main Costa del Sol markets in Q1 2017

It’s been an interesting period for residential sales in the four main markets we cover on the Costa del Sol. Marbella saw sales for the quarter drop by 4.2% for the quarter, although they were up by 7.5% year-on-year. Estepona, on the other hand, registered a huge 77% hike in sales for the quarter, the highest figure on record since the Ministry of Public Works data began in 2004. In Benahavís, sales were down 13.6% for the three-month period and 11.5% year-on-year. Finally, San Roque, which includes Sotogrande, saw the total number of sales rise by 19%, representing 5.4% more than in Q1 2016.

Terra Meridiana’s view: Marbella is still the daddy of the four markets we include in our analysis, but, for the first time, Estepona is starting to rival it in terms of sales, with just 57 transactions fewer in the first quarter of 2017, despite only being around half the size. The niche market of Benahavís saw a slight drop-off in sales, although this is normal at the start of the year as it is particularly attractive to overseas buyers. Meanwhile, San Roque posted a significant rise in sales, although most of this probably came from Spanish purchasers.

Prices continued to grow faster than the previous quarter, but less than Q1 2016

Average prices for residential property in Spain grew by 5.3% in the first quarter, higher than the rate registered in the previous quarter but lower than the first three months of last year.

Terra Meridiana’s view: The positive trend in Spanish housing prices continues, albeit at a relatively gradual rate in the majority of markets around the country. In-demand areas, such as the best neighbourhoods in the big cities and on the coast, are seeing larger increases, driven by firm demand.

By Adam Neale | Property News | June 27th, 2017

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SPAIN AND COSTA DEL SOL RESIDENTIAL PROPERTY MARKET REPORT Q1 2017
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