Demand increases in Spanish Property Market
Good news all round for the Spanish property market as newly released figures for the first 6 months of 2017 confirm sales’ increases in both the local and foreign buyer’s markets.
For the first time since the meltdown of 2008, the Spanish home market recorded sales of over 100,000 per month; an increase of 11.1%. Foreign buyers increased by 8% with British buyers still the largest group at 15% compared to French at 9% and Germans on 8%. Overall though, the total market share of foreign buyers was down to 13%, mostly because the home market for Spanish property has increased, so as a proportion of total property sales it is smaller than a year ago.
Property sales values have also continued to increase in the past 6 months, with an average rise of 4.6% across the country according to BBVA Real Estate research division. Predictions for the rest of 2017 are also positive.
Currency and Exchange Rates
The UK pound has gained in strength rising from 1.08€ to £1 in August to 1.14€ to £1 in the middle of September. Two factors have triggered this welcome news;
Firstly, the Bank of England has been making positive noises regarding the UK economy and monetary policy and of course the annual variance during the holiday season where bank rates are adjusted to make large profits from British tourists buying Euros for their European vacations.
It is anticipated the pound will make further gains for the rest of the year assuming the British economy continues to perform better than anticipated post Brexit!
As far as the Spanish property market is concerned, British buyers will benefit from an extra 5% purchase power. We have experienced a 30% increase in British buyer enquires over the last 3 days proving that potential property buyers are keeping a keen eye on the rates.
Mortgage and Finance
Further good news for home buyers as mortgage rates across the Eurozone fell to an all-time low when the Euribor was set to -0.156% – which represents a 1.3% drop. An increase in the amount of loans extended in 2017 recorded a 12% surge.
Many thanks for your emails in the past few months. Please don’t hesitate to ask any questions regarding any of my articles or general property market questions. I am very happy to help.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173