As it stands today, the property recovery in Spain continues with a total of 51,477 Spanish homes being sold during the month of June. This comes from the latest data being released by the Spanish notaries. Comparing the property market data, property sales in June 2017 rose by 17.4%. Comparing this with the same month last year, we are witnessing the highest increase since the Spanish notary began keeping records almost ten years ago.
As the case usually goes, property prices have also slightly risen because of the increase in property sales. The Spanish Notary is reporting a 1.4% increase over the past year, which takes the average property price (per square meter) to €1,358.
The increase in property sales in Marbella, for example, is happening because of the rise in the number of new mortgage approvals. In June, 2017 the number of residential mortgages granted was 19.2% higher than the same time last year (2016).
These figures show us that 45% of all residential property purchases in June were financed by a mortgage. Another interesting turn of events is the rise in the number of new-build property – this particular corner grew by 10.8% in June. The reason for this increase was thanks to developers having a renewed and very confident interest in the Spanish market, particularly with new developments on the Costa del Sol.
Confidence Grows in Spain
Driving demand for property investments on the Costa del Sol or buying property in Marbella is the economic recovery. Spain’s gross domestic product increased 3.2% in the first quarter, the same pace for the past two years and even better than the 1.8% Eurozone average. Spanish property investors are returning in full force because of sheer confidence in full recovery.
Spain’s recovery is one of the fastest growing in Europe and those looking to buy Costa del Sol property are willing to look at a wider range of assets. This includes Marbella villas, new Estepona developments and more.
Overall, commercial-property investment across Europe has dipped in the past year, hampered by a lack of supply and political uncertainty. But while property for sale in Spain is also limited, it remains a relatively cheap option on the Continent.
Even though yields are at record lows, property values in Spain haven’t yet returned to their precrisis peaks. That is because the price of real estate on the Costa del Sol includes how much a landlord earns from rent payments. And in Spain, rents are still low.
Marbella Property by Far the Most Popular
Marbella property still leads the way when it comes to property investments. However, catching up fast is property for sale in Estepona and even more popular is the new developments popping up across the Costa del Sol. The new-build-sector is really sprung back into action. British buyers still lead the way when it comes to second holiday homes or retirement flats.