You will struggle to find better value for prime property anywhere in the rich World, according to a new study by the international property company Savills.
“With the Spanish economy outperforming the average within the EU, the country’s property market is seeing an increase in residential sales and construction activity as well as steady price growth”, says Savills in its Spotlight on Spain Residential, released this week.
Spanish property prices were hammered by the decade-long real estate crisis triggered by the 2008 global financial crisis, but continue to recover with the Spanish economy, which is currently one of the strongest performing economies in Europe.
As the market has not yet recovered to where it was before the downturn, Savills argue there is still room for growth.
“In a global context, Spain’s prime city markets offer value for money and higher growth potential than other key world cities,” say Savills. “Madrid is the most expensive for prime property , with an average value of €7,000 per sqm. This is 23.1% lower than Berlin, 60.5% lower than London and 84.6% lower than Hong Kong. In Barcelona, prime values are 11.4% cheaper than Madrid at €6,200 per sqm. However, in both Madrid and Barcelona, prime values can reach €15,000 per sqm for the highest quality new build apartments. Valencia and Malaga are significantly lower still at €5,000 per sqm and €2,600 per sqm respectively.”
Savills international ranking of prime property values in cities is as follows:
Sophie Chick, head of Savills World Research, said, “The hardships faced by Spain following the Global Financial Crisis are in the past and the future looks bright. The country’s status as a top visitor destination, coupled with the lifestyle and low cost of living will continue to attract buyers and underpins Spain’s lasting appeal.”