Noticias de la Cámara
Lucas Fox | Spanish home sales soar by nearly 50% in first half of 2017
15/09/2017
Leading real estate agency Lucas Fox’s half yearly Spanish property market reports continue to show encouraging trends for the residential real estate sector. The reports show significant increases in both the volume and value of sales transactions for the first six months of 2017 – up by 47% and 55% respectively across all its regions. There has also been an increase in the number of national buyers compared to the same period in 2016, comprising 38% of all sales. 10% of sales were to British buyers – slightly down on 2016 – and 10% were to US or Canadian buyers.
Overall, 32% of all Lucas Fox buyers bought as an investment and the same proportion purchased homes as a secondary residence. 23% of buyers bought homes as a primary residence. The average price of a property sold by Lucas Fox in the first six months of 2017 was €750,000.
“We’ve had an extremely successful first half to 2017, particularly in Spain’s top three cities, Madrid, Barcelona and Valencia as well as along the Barcelona coast' comments Lucas Fox co-founder Alexander Vaughan. 'Spain’s economy is the fastest growing in the Eurozone, bringing greater confidence back the property market. We have seen growing interest from property investors, who now regard Spanish real estate as offering excellent potential for capital gains and profitability through short and long term rentals. We expect that the price recovery now taking place in the cities will extend to the suburbs and other parts of the country in the forthcoming months.”
Regional highlights for Q1 and Q2 2017 include:
Barcelona
- The volume of Lucas Fox Barcelona sales increased by 42% and the value of sales by 31%
- The largest proportion of Lucas Fox buyers (43%) purchased for investment reasons in the mid-level market
- In the prime residential market (above €900,000), just under half of Lucas Fox buyers (46%) bought as a secondary residence
- New build homes continue to be the most sought-after product
- By the end of 2017 new homes are expected to account for at least 50% of Lucas Fox Barcelona sales
- There has been a significant demand from Northern European and US buyers for both renting and buying homes in Barcelona
- Barcelona rental transactions increased by 150% year-on-year with the average home to rent priced at €2,721
“Renovated apartments located in Modernista buildings situated in Eixample are as always in high demand, although other areas in the Old Town are becoming more and more sought-after' explains Rod Jamieson, Partner Lucas Fox Barcelona and Madrid 'Driving this demand is the development of luxury new build projects and the transformation of these areas with the opening of new trendy bars, restaurants and shops. Barcelona is also attracting increasing numbers of wealthy international people wishing to settle in the city thanks to its exceptional quality of life. The number of transactions at the top end of the market has grown consistently during the year and prime properties in the uptown area near international schools are being snapped up.”
Barcelona North and South coast (Maresme and Sitges)
- The number of sales by Lucas Fox Sitges increased by 175%
- Just under a fifth of Lucas Fox Sitges buyers (18%) were Spanish and 27% came from the UK
- Just over half (55%) of Lucas Fox Sitges buyers purchased a home as a secondary residence
- The value of Lucas Fox Maresme sales increased by 59%
- 80% of Lucas Fox Maresme buyers purchased a primary residence
- The average price of a Lucas Fox sale in the Maresme was €1.3 million in the first half of 2017, but mid-market properties are in most demand, representing around 60% of the company’s sales transactions
“2017 has proved to be a pivotal point in the recovery of the real estate market in the Maresme region' explains Tom Maidment, Partner Lucas Fox Maresme & Costa Brava 'The second quarter of the year in particular has seen buyer confidence rise to levels not seen for many years and Lucas Fox Maresme is expecting to register a record-breaking volume of transactions in 2017. The last few months have seen a complete turnaround in market conditions with a high level of activity from both local and international buyers.”
“Prices in Sitges have increased over recent years but are still significantly behind the peak of 2007' adds Rachel Haslam, director of Lucas Fox Sitges 'Where property prices in Barcelona are fast catching up with those of 10 years ago, here the pace is slower, offering good opportunities for investors who want to see healthy returns.”
Madrid
- Both the volume and value of Lucas Fox Madrid sales increased in the first half of 2017, up by 30% and 170% respectively
- 62% of Lucas Fox Madrid sales were for investment properties
- Just under half (46%) of all Lucas Fox Madrid sales were to national buyers
- Latin American buyers accounted for 31% of all Lucas Fox Madrid sales
“Increasing numbers of international buyers are choosing the Spanish capital as the best option in which to invest their money, thanks to good potential for capital gains in the mid to long-term, excellent rental returns and the superb lifestyle on offer' comments Rod Jamieson, Partner Lucas Fox Barcelona and Madrid. 'The most sought-after locations in the city continue to be the neighbourhoods of Salamanca, Chamberí and Justicia. There remains a shortage of quality properties available on the market in these key central locations of the city but we expect the availability of turnkey homes to increase during the second half of the year.”
Valencia
- The volume of homes sold by Lucas Fox Valencia increased by 156%
- 43% of Lucas Fox Valencia buyers bought for a primary residence with the remainder split more or less equally between investment and second home
- 65% of Lucas Fox Valencia buyers were Spanish in the first six months of 2017
- Lucas Fox Valencia rental transactions increased by 63% year-on-year with the average rental home priced at €2,423
“We have seen a noticeable growth in the number of national enquiries in the first half of 2017 and around 50% of our clients are international' comments Juan Luis Herrero, Partner Lucas Fox Valencia 'There have also been more investors around, thanks to the city’s attractive property prices, good rental yields and, of course, Valencia’s fantastic quality of life.”
Marbella, Costa Brava and Ibiza
- The volume of Lucas Fox Marbella sales saw an increase of 150%
- Sales to Scandinavian buyers accounted for 80% of all Lucas Fox Marbella sales
- Half of all Lucas Fox Costa Brava sales were to national buyers
- 75% of Lucas Fox Costa Brava buyers purchased a secondary residence
- Demand from Russians and Ukranians is increasing on the Costa Brava
- All of Lucas Fox Ibiza buyers purchased for a secondary residence
- Demand from the Germans and French is up on Ibiza, whilst British demand is down
“Demand for coastal properties has remained consistent and there have also been signs of an increase in sales at the prime end of the market' comments Tom Maidment, Partner Lucas Fox Maresme and Costa Brava. 'The southern coastal areas of Blanes, Lloret de Mar and Tossa de Mar have also begun to see the return of interest from high-end Russian, Ukranian and Kazakh clients. Both national and international buyers are returning in numbers to the rustic market and the demand for both rustic townhouses in prime areas of the Empordà and larger country houses throughout the Empordà and elsewhere in Girona has risen significantly. This is perhaps the standout trend in the first half of 2017.”
View Lucas Fox’s half yearly market reports 2017
