New data shows that transactions in the Spanish property market surged by 13.7% in September year-on-year, with 27,024 home purchases recorded during the month.
Spain’s National Statistics Institute show that compared with August 2014, homes sales in September increased by 14.9%, the biggest rise in this month for 5 years.
37.3% increase in sales of resale properties
The year-on-year rise in home sales in September was due to the whopping 37.3% increase in sales of resale properties, reaching 18,068 transactions in the month. In contrast, sales of new homes declined 15.5% year-on-year to 8,956 sales.
The increasing interest in resale properties is largely due to the lack of availability of new homes combined with a backlog of bank repossessions flooding the market.
According to the data, September saw the largest numbers of home sales per 100,000 inhabitants in Valencia with 118, followed at joint second place by Andalucía and Murcia both with 81.
Andalucía also recorded most transactions in the ninth month of the year with 5,363 sales, followed by Valencia (4,647), Catalonia (3,690) and Madrid (3,605).
The statistics indicate a sustained recovery for Spain’s property market, improving the outlook for 2015 considerably.
Thomas Harper of Marbella-based real estate company Asset Folio said:
" The outlook for 2015 looks set to follow on from the last two quarters of this year, with demand continuing to remain high in certain areas where there is genuine value for product. As an example, there is a high demand in Marbella and Nueva Andalucía for high-quality villas under €2m ready to move into, but there is very little product in this sector. This has led to a renaissance in the ‘knock down and build’ market in the past 18 months. "
Marbella and Puerto Banus are particularly popular
" There is a strong demand from the Middle East for high-end luxury apartments that can cater for larger families. Properties of four bedrooms or more with large liveable spaces and striking distance to Marbella and Puerto Banus are particularly popular. This is a market we have excelled in this year and with demand outstripping supply, it is a genuine market, " he added.
Spain’s construction sector has also seen growth in 2014 although largely concentrated in its commercial real estate market, leading to a shortage of new homes, particularly in prime hotspot areas such as Marbella.
As new supply becomes available in 2015, new-build developments are likely to be snapped-up quickly, predominantly by foreign investors in the Spanish property market, seeking the high capital growth and rental yields available in prime locations of one of the world’s most popular tourist destinations.
Expert Agent Interview: Asset Folio – Thomas Harper
Source: Property show rooms