Home sales continue to grow in Spain
Home sales continue to grow in Spain, having reached 133,860 during the first quarter of 2019 (data from the College of Registrars), -11.36% on Q1 2018, +74.25% on minimum level. With a 12.20%, foreign demand maintains its high levels of interest for the Spanish residential market – becoming a key element in current sales figures. English citizens are still leading the list of major foreign buyers. Property prices continue to grow during the first quarter of the year.
Prices in Costa Blanca
Prices in Costa Blanca have also experienced an upward trend, reaching an average price per m2 of €1,509.5 compared to €1,474 in the previous quarter.
Benidorm and Orihuela experienced the most significant increases, while in Torrevieja and Santa Pola property prices showed a slight decline.
Sales in Costa Blanca
The most significant changes in property purchases in Spain during the first quarter of 2019 are the decline in British demand and the increase in demand from nationals who link housing to job-related matters. However, the demand for housing in Spain is also linked to tourism.
Autonomous communities with high tourist density in the islands and the Mediterranean coast continue to clearly lead the foreign property market in Spain, maintaining high territorial differences with respect to the rest of the autonomous communities. Data emphasises both the fact that there continue to be important territorial differences in property purchase patterns in Spain and that foreign demand in this country continues to show a clear link to tourism, conditioning the territorial results of home purchases by foreigners.
New Build vs Resale in Costa Blanca
New housing has continued to gain prominence in the first quarter of the year, giving continuity to the rise of the previous quarter. The results of initiations and new housing visas hinted to a growth that sooner or later had to be reflected in the purchase and sale of property.
The intensity in the growth of the purchases of second hand properties has delayed a positive behaviour in new properties, something which has been obvious for quite some time. Specifically, new housing accounted for 19.03% of total home purchases in the first quarter, increasing by 0.93 pp with respect to the previous quarter. On the other hand, second hand properties accounted for 80.97% of the total sales, slowing down the increase in new housing purchases.
High foreign property purchase levels in Spain affords the markets mentioned in this report a much more balanced aspect in as much as they are not so intensely conditioned by local social and economic factors but by many other different aspects, protecting them from generalised negative effects. From this stand point, these are markets are much more dynamic than those were foreign interests are not that invested.