Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
The final sales figures for last year from the National Institute of Statistics (INE) show the market expanded 14% in 2016, the biggest increase since the run up to the last boom.
There were 362,182 home sales inscribed in the Spanish property register in 2016 (403,866 if you include subsidised housing) an increase of 14% for the year, and up 7% to 26,778 in December.
As you can see from the chart above, the market has expanded for the last three years after bottoming out in 2013. And the next chart illustrates how the recovery has posted two consecutive years of double-digit grown.
But despite the recent improvement in sales, the market is still 50% smaller by volume than it was in the peak boom year of 2007. What would be a normal level of sales for country the size of Spain? Somewhere between the two.
It was a relatively good year for new home sales, which only declined 3% in the year. That was a huge improvement after almost a decade of double-digit declines. As you can see from the following chart, 2016 was the year that new home sales declines petered out. I expect new home sales will increase next year for the first time in more than a decade.
Sales exploded in the Balearics, up 31%, but rose by just 5% in Malaga (Costa del Sol) and Murcia, well below the national average. That is probably due to Brexit depressing British demand in those regions, where British buyers have long been the biggest foreign market.
Sales were also strong in Barcelona, up 24%, driven in part by strong international demand from an increasingly diversified global market led by the Chinese.
What does it all mean? Firstly, it shows there is a real and sustained recovery in home sales (albeit from a low base), though some areas are doing much better than others. Secondly, there is room for more growth, as the market is still smaller than it should be considering the population size and housing stock. Thirdly, 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 assuming no nasty shocks. However, there are plenty of potential nasty shocks lurking around the world today. Fingers crossed.
Everything you need to know about property in Spain
Login or Register to read articles without any adverts in the text.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.