Although the complete set of statistics for annual property sales in 2018 will not be available until Feb/March 2019, we can tell by the trends in the 3rd quarter and October’s figures that there has been distinct growth of the market.
According to the National Institute of Statistics, home sales in Spain grew by 17% in October, compared to the same period of the previous year. Murcia region has performed exceptionally well in the second half of 2018. Sales increased by 53% in October alone – the best results across the whole of Spain – and has averaged 25% for the year to October, ranking 3rd out of 25 regions.
The first half of 2018 saw steady sales growth across Spain, but Murcia was sporadic in the first 2 quarters. With these latest figures, it is clear that Murcia region is still hugely popular with national and foreign buyers.
November and December’s figures are eagerly anticipated to round off the stats for 2018 – but there could be disappointment coming. Since October, the British government has been making rather a mess of Brexit negotiations, resulting in further devaluation of the pound against the Euro. It is the number one concern for British buyers at present.
Although other northern European buyers don’t have those concerns, they certainly have others. German and French buyers tell us they expect tax rises to plug the hole left when the UK stops paying into the EU. Belgium and Dutch buyers seem more concerned with the worrying slow-down of the EU economy and fear another recession.
From our own experience, the last 2 months of 2018 were certainly more sluggish, though, as in previous years we had a flurry of viewings booked over the Christmas period. We shall see what the sales figures look like when the dust settles. As one would expect, British buyers have found the pound is buying less property for their money and they are certainly making lower offers on properties to compensate. This will affect actual sales values, so we don’t anticipate much, if any increase in the value of properties in the final quarter of 2018.
Looking forward to 2019 – we have a lot to be hopeful about. The new airport near Corvera will bring more visitors nearer to the centre of the region, which in turn exposes potential buyers to the inland scenery, possibly boosting interest in areas that have not really benefitted from such exposure before. After March, we will have more clarity on how Brexit will be managed. That will bring a boost in confidence, as up to now, politicians of all colours, as well as EU officials have been complicit in muddying the waters regarding the movement of people across the continent.
We would like to take this opportunity to wish everyone a Healthy and Prosperous New Year.
Fuente Alamo Real Estate / Murcia Coast & Country Properties
Tel 0034 968 598 173