Here you will find news, views, events and information relating to real-estate in Spain.

Used Property Prices Increase in November

Used property prices up 2.75% year-on-year
second-hand housing prices up 2.75% year-on-year

Used property prices up 2.75% year-on-year

The average price of second-hand housing in Spain stood at 1,706 euros per square metre in November 2019. The figure represents a monthly variation of -0.27% when compared to October. With respect to November 2018, the variation is +2.75%, according to data from In November last year the average cost per square metre stood at 1,660 euros.

“The upward trend in house prices has reduced its intensity,” says Ferran Font, director of studies at pisos .com. Furthermore, he points out that the “bulky peaks” which were seen in some local markets are gone, being replaced with more moderate growth. For Font, this slowdown is marked by a contraction in the number of sales. He also went on to say that prices are still high for first-time buyers who, although solvent, are having difficulties covering the amount above their savings.

Regarding new constructions, Font admits that “the pace at which new promotions are coming to the market is still slow. This shortage means the new products sell fast and at prices very close to the maximum, which in turn gives no space for the pressure on second-hand properties to ease.”

Balearic Islands Most Expensive Community

The most expensive autonomous community for second-hand housing for sale in November was the Balearic Islands, where the average cost per square metre has reached 3,144 euros. Next were the Basque Country (€2,696 p/m²) and Madrid (€2,652 p/m²). The average cost per square metre in Andalusia reached 1,646 euros, a little below the national average.

The cheapest communities for second-hand housing were Castilla-La Mancha (€886 p/m²), Extremadura (€997 p/m²) and Murcia (€1,131 p/m²).

Interannually, the most striking rebounds occurred in Madrid (6.10%), the Balearic Islands (6.02%) and the Canary Islands (5.26%), while in Andalusia prices increased by 3.21%. The most intense negative adjustments were seen in La Rioja (-5.07%), Cantabria (-2.29%) and Asturias (-2.06%).

Prices by Province

The most significant increases from one year to the next were located in Álava (7.16%), Albacete (6.64%) and Madrid (6.10%). The steepest declines were recorded in Zamora (-13.26%), Toledo (-7.97%) and Lugo (-7.52%).

In the ranking of the provinces by price, the first position in November 2019 was for the Balearic Islands, with 3,144 euros per square meter. It was followed by Guipúzcoa (€3,115 p/m²) and Vizcaya (€2,667 p/m²). On the opposite side was Cuenca, which closed the month with 719 euros per square meter. Other economic provinces were Ciudad Real (€768 p/m²) and Toledo (€791 p/m²).

As for the provincial capitals, the most intense increases compared to November 2018 occurred in Madrid (14.38%), Girona (11.51%) and Pontevedra (11.35%). Those that fell the most were Logroño (-14.84%), Zamora (-14.48%) and Toledo (-8.93%).

Ordering the provincial capitals by price, Donostia-San Sebastián was the most expensive, with 4,866 euros per square meter. It was followed by Barcelona (€4,487 p/m²) and Madrid (€3,952 p/m²). The capital of Ávila was the most affordable with 1,036 euros per square meter. Other cheap provincial capitals were Ciudad Real (€1,099 p/m²) and Cuenca (€1,121 p/m²).


10% of Property Purchases Made For Investment

70% of investment buyers offer long-term rental
70% of investment buyers offer long-term rental

70% of investment buyers offer long-term rental

Over the last 12 months, purchases of housing as an investment represented 10% of the total sales transactions made in Spain. Sales of property for investment now make up the same amount as those transactions to purchase a second home, which also number 10% of the total. For comparison, the purchase of property for the purpose of a primary residence accounts for 78% of the total transactions.

Of those who purchased their property as an investment, 70% purchased with the intention of offering the property for rent on a long-term basis. The main reason stated was for the high profitability that this type of rental offers to owners.

“The profitability of housing at the moment is quite high in Spain and stands, on average, at 5.2%, according to fotocasa data. Therefore, there are many homeowners who consider that buying a home for rental gives a high return that no other financial product can match right now. This explains why 70% of investment buyers have acquired property for this reason,” explained Ismael Kardoudi, director of Studies and Training at Fotocasa.

In addition to offering property for long-term rental, 15% purchased housing with the intention of offering it for short-term or holiday rental, while another 15% do not intend to rent their property at all. Those who said they would not offer their property for rent said this was due to the risk of non-payment of the rent on the part of the tenants.

More Old Than New

Of the buyers who purchased for investment, 82% purchased a second-hand property, while only 18% purchased a new property. Additionally, in most cases the house purchased was in the same town as their primary residence, although in a different neighbourhood in 34% of cases. 27% were in the same town and in the same neighbourhood, while 15% bought in a different town.

Regarding the time it took to find investment housing, in 21% of cases it took between six months and one year, 20% took between four and six months, while another 20% took between two and four months. In 13% of cases it took between one and two years to find a suitable property, while another 4% took more than two years to find the home to buy as an investment.

Who buys housing as an investment in Spain?

In the last year, those active in the real estate market that bought housing as an investment were 59% men, with an average age of 45 years, with great purchasing power (mostly with monthly income between €5,000 and €8,000) and in 50% of cases they live with their partner and children.

Additionally, 75% already own a property. Of these, 35% own a single home, 33% own two homes, 11% have three homes and 22% already own more than three homes.

Looking at prices, people who have bought housing as an investment consider that the prices of rentals at the moment are very expensive (63%) and 28% say that it is somewhat expensive. And regarding the purchase prices, 38% believe that prices are very expensive and 45% say they are somewhat expensive.


Cost of Renting Up in October

Moving to a new rental costs 2.4% more
Moving to a new rental costs 2.4% more

Rental costs increased 2.4% in October

In October, the price of rental housing in Spain increased 2.4% when compared to September. On a year-on-year basis the increase was 3.6%, bringing the average price per square metre per month to €9.81.

Across the autonomous communities the most expensive rental property is found in Madrid and Catalonia, with average prices of €14.82 p/m² per month and €13.84 p/m² per month, respectively.

They are followed by the Basque Country with €12.71 p/m² per month, Balearic Islands with €12.49 p/m² per month, Canary Islands with €9.89 p/m² per month, Navarra with €8.56 p/m² per month, Cantabria €8.32 p/m² per month, Aragon at €8.11 p/m² per month, Andalusia at €8.02 p/m² per month, Valencian Community with €7.96 p/m² per month, Asturias with €7.24 p/m² per month, Galicia with €6.60 p/m² per month, Castilla y León with €6.59 p/m² per month, La Rioja with €6.50 p/m² per month, Region of Murcia with €6.27 p/m² per month, Castilla-La Mancha with €5.33 p/m² per month and Extremadura with €4.83 p/m² per month.

In October, 15 autonomous communities presented positive monthly variations. Navarra showed the largest rise with an increase of 8.2%. The biggest fall was seen in Catalonia with a decrease of -0.4%.

“The market continues to show clear signs of price stabilization and moderation. Proof of this is that in October we didn’t see any community with interannual increases above 10% and even some communities, such as Extremadura, recorded slight interannual declines,” explained Ismael Kardoudi, director of Studies and Training at Fotocasa.

Rises in 38 provinces

The price of rental property increased in 38 of the 47 provinces analyzed by Fotocasa. The most pronounced monthly increase was recorded by Navarra with 8.2%, followed by Cuenca (7.4%), Huesca (4.9%), Ávila (4%), Jaén (3.9%) and Burgos (3.8%), among others.

On the other hand, the provinces that experienced the greatest monthly declines were Castellón (-2.7%), Girona (-1.7%), Cáceres (-1.4%), Valladolid (-1.4%) and Salamanca (-1.1%), among others.

As for prices, only six provinces exceed 10 euros per square metre, such as Barcelona, the most expensive province with €15.54 p/m² per month, followed by Madrid (€14.82 p/m² per month) , Gipuzkoa (€14.45 p/m² per month), the Balearic Islands (€12.49 p/m² per month), Bizkaia (€12.18 p/m² per month) and Las Palmas (€10.09 p/m² per month) .


October Another Busy Month For Malaga

October Another Busy Month For Malaga
October Another Busy Month For Malaga

The Costa del Sol attracts tourists all year!

Malaga-Costa del Sol airport saw 1.8 million travellers pass through in October, an increase of 0.6% when compared to the same month last year. The passengers moved on 13,152 flights, a slight drop (-1.6%). The majority of passengers moved on commercial flights (1,870,398). Of these, 1.6 million were on international flights, 0.6% more than in October 2018, according to airport operator AENA.

The number of passengers travelling between Spanish cities also increased with 1.8% more domestic passengers.

The UK remained as the main source/destination of Malaga’s passengers with 563,994 travellers heading to or from UK airports. Germany and France are also seemingly permanent in the top three with 158,203 Germans and 118,421 French travellers passing through Malaga.

The last Saturday of October was the busiest for both passenger numbers and flight operations. On October 26th, the airport handled 484 flights while on the same day 72,074 travellers passed through the airport.


So far this year more than 17.5 million passengers have arrived or departed from Malaga-Costa del Sol airport. This represents a 4.7% increase in passenger numbers and a 3.3% rise in the number of flights operations, when compared to the same period last year.

Over 15 million of those passengers travelled on international flights, an increase of 4.2%. The number of international flight operations also increased, going up 2.9% to reach 98,700 flights.

The domestic market is also up significantly this year with over 2.5 million passengers travelling between Spanish cities contributing to an 8.5% increase in passengers and an increase of 8.3% in the number of domestic flights.

This has been a record year for Malaga-Costa del Sol Airport already. 2019 has seen the airport breaking numerous records including the busiest September in the airports 100 year history, when for the first time over 2 million passengers were recorded in a single month.


British Still Most Numerous Foreign Buyers

Brits still dominate sales to foreign buyers
British buyers still dominate sales to foreign buyers

Brits still dominate sales to foreign buyers

The sale of property to foreign buyers fell by 3.2% in the first half of 2019. Non-resident foreign buyers accounted for 41% of those transactions, a fall of 9.7%. Resident foreign buyers accounted for 59%, representing an increase of 1.9%, according to data from the General Council of Notaries.

Purchases by foreign buyers varied greatly across autonomous communities. The most pronounced fall occurred in the Canary Islands with a 20.1% fall, and the Balearic Islands where sales to foreign buyers fell 13.7%. Falls were also seen in Aragon (-5.8%), and Madrid (-8.1%)

The most notable increases were seen in Cantabria (+47.6%), Asturias (+41.1%), and Galicia (+17.1%). However, most of the inland communities showed very high growth, reaching double digits in Castilla y León (31.0%), Extremadura (22.9%) and Castilla-La Mancha (20.4%).

Sales to foreigners in the Mediterranean coasts was uneven, registering increases in Murcia (9.6%) and Catalonia (7.8%) and falls in the Valencian Community (-4.6%) and Andalusia (-5.7%).

Sales to foreign buyers accounted for 18.6% of the total sales nationwide. This was exceeded in the Valencian Community (36%), the Canary Islands (35.3%), the Balearic Islands (34.3%), and Murcia (28.5 %).

Nationalities and Prices

The British remained as the foreign buyers with the greater proportion of sales accounting for 12.9%. The increase in the number of buyers from Morocco (21.4%), Argentina (12.7%) and the USA (11.3%) stands out. The most notable falls were buyers from Portugal (-8.6%), Ireland (-7.3%) and Italy (-1.3%).

Despite obvious Brexit worries, Brits still made up a large proportion in many communities. In Andalucia, British buyers accounted for 25% of sales to non-resident foreign buyers. In Murica, they accounted for over half (53%), while in Valencia Brits accounted for 19%.  On the Balearic Islands, British buyers made up 16% of non-resident foreign buyers. They even got noticed in Northern Spain accounting for 10% in Asturias, 9% in Cantabria and 13% in Navarra.

The average price per square meter of operations carried out by foreigners grew 2.5% year-on-year. This growth was higher for non-residents (5.8%) than for residents (1.3%) and a higher price is maintained for the former (€2,099 versus €1,428 p/m²). The price evolution was triggered by Autonomous Communities: prices soared in Cantabria (17.2%) and decreased in Extremadura (-22.8%), Asturias (-14.7%), La Rioja (-13. 0%) and Aragon (-12.0%).

The majority of foreigners who buy a property go to a notary for the legal control they perform and the legal security provided by the public deed.