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

Property Prices to Increase 4.7% Annually to 2019

New property accounts for 10% of sales
Property prices will increase 4.7% until 2019, says Moody's

New property accounts for 10% of sales

Moody’s, a credit rating agency, expects property prices in Spain to rise by 4.7% per year up to 2019.

However, the agency point out that the number of units sold is equally as important to the recovery of the housing sector.

They point out that it is necessary to “decouple” the sale price from the number of operations, since although the volume is slightly lower, new property “now represents only 10% of sales, far from the pre-crisis levels”, when new property sales accounted for 50% of the total.

No Bubble

There is, says Moody’s, no risk of “overheating” of the mortgage market, nor any likely mortgage bubble, as for every four euros that were loaned in 2007, only one euro is loaned today.

This is despite a warning from the president of the European Central Bank (ECB), Mario Draghi, that there is a danger in the euro area of a new housing or credit bubble.

Spanish banks are now much more restrictive when it comes to mortgage lending, says Moody’s analyst Antonio Tena, adding that a distinction needs to be made between the number of mortgages and the number of sales. In 2007, banks gave more mortgages than the number of homes sold, while in 2016 the reverse was true.

Sales Increasing

Housing have grown steadily at around 14% per year, more than the increase in property prices, but still represent half of what was sold in 2007; The data that Moody’s assessed shows that in no city of more than 200,000 inhabitants did the number of sales decline, and that Madrid and Barcelona – and the bordering towns – as well as the Mediterranean coast see the majority of sales.

Another positive indicator, Tena points out, is that the average age of a mortgage applicant, which in 2007 was 34 years old, has risen to 38, a profile with greater capacity for savings and personal financing of a home purchase.

Repayment periods have also been reduced which will have a positive impact on the banks’ balance sheets and their credit risk, as well as their default rate.

As for the proliferation of fixed rate mortgages, a “rarity” in Spain, Moody’s analyst José de León says it is “not clear” whether or not it is better, and for whom, that the banks are not keen to offer such conditions.

Huge Investment for Hotel Don Miguel in Marbella

Hotel Don Miguel New Plans
Hotel Don Miguel New Plans

The plans include multiple pools

More good news for Marbella this month with the announcement that the Magna Hotels and Resorts Group plan to invest 70 million euros into the region to reopen the Hotel Don Miguel. The hotel was an emblem of tourism during the seventies and eighties which sadly closed its doors in 2004.

The hotel is scheduled to open in spring 2019 and will be managed by French chain Club Med. The group were chosen from 23 international operators during a selection process that lasted over 18 months. The announcement was made by Jihad Megharief, the president of the Magna group. He appeared with the mayor, José Bernal, and the vice president of Development and Construction for the French groups, Gregory Lanter.

“Magna Hotels will invest 70 million euros to give [the hotel] a second life, a new beginning and a big and lasting future for the hotel,” said Megharief.

The hotel will have 486 rooms of different categories. It will also offer tennis courts, golfing facilities, multiple pools, a spa and restaurants. The hotel will not retain the name Don Miguel and the group are already working to find a new one.

Good For Marbella

The investment will involve reviewing the hotels electrical and mechanical installations. The look and feel will also be updated. The interior and exterior of the complex, including the facade, will be remodelled. The group estimate some 300 jobs will be created during the construction period. A further 300 more will be created when the hotel opens its doors.

With this plan, the redevelopment of Marbella’s Puerto de la Bajadilla, and the plan to bring W Hotels to Marbella, all the signs suggest the continuation of Marbella as the jewel in the Costa del Sol crown.

Home Sales Increased 26.9% in March

Rural property sales increased by 24.3%
Rural home sales increased by 24.3%

Rural property sales increased by 24.3%

The total number of property transfers registered in March 2017 was just short of 170,000. This represents a 17.7% increase when compared to March 2016. When comparing to the previous month (Feb 2017), the increase is 13.4%.

The purchase and sale of residential properties increased by 26.9% when compared to March last year. The monthly variation, comparing to February 2017, was +13.6%, according to the latest figures from the INE.

83.9% of properties purchased in March correspond to urban properties, with 16.1% rustic. Of the urban properties, 56.7% were home sales.

The number of rural properties sold increased by 24.3% when compared to the same month last year.

The number of urban properties sold represented an increase of 28.8%. When looking at the monthly variation, we see a 26.5% increase in the number of rural properties sold. There was a 13.1% increase in the sale of urban properties, when compared to the previous month.

18.2% of the homes transferred by purchase or sale in March were new properties, while 81.8% were used.

Sales of new property rose by 21.2%, while the number of used properties sold increased by 28.3%, when compared to March 2016.

Autonomous Communities

In March, the total number of transferred properties per 100,000 inhabitants reaches its highest values in La Rioja (826), and Aragon and Castilla y León (both 693).

The highest annual variations were seen in Asturias (52.3%), Galicia (49.5%) and La Rioja (35.4%).

The lowest annual variations were seen in Castilla-La Mancha (1.6%), Aragon (2.8%) and Extremadura (4.9%).

The communities to see the highest number of home sales in March per 100,000 inhabitants were Valencia (150), Balearic Islands (148) and Andalusia (121).

The communities with the highest annual variation in the number of homes sold were Cantabria (48.3%), Aragon (45.2%) and La Rioja (41.4%).

At the other end of the scale, we find the communities with the lowest annual variations were the Canary Islands (-3.5%), Extremadura (11.5%) and Community of Madrid (14.9%).

Prices in Capitals and Large Cities Increase 6%

Coastal property remains popular
Coastal property remains popular and prices increased

Coastal property remains popular

Positivity in the real-estate market continued over the last 12 months. The average price of finished housing (new and used) in Spain has improved in the year to April 2017 showing a year-on-year increase in prices of 2%, according to the Tinsa IMIE.

The category “Capitals and big cities”, with an increase of 6.1%, shows the biggest positive annual variation. The “Balearic and Canary Islands” showed annual growth of 4%, when compared to April 2016.

The “Mediterranean Coast” showed an annual variation of +1.3%, yet remains at -46% from the maximum prices reached in 2007. In contrast, the categories “Metropolitan Areas” and “Rest of municipalities” continue to average less than a year ago. “Metropolitan Areas” recorded a year-on-year decline of -2.6%. “Rest of municipalities” showed a decline of -1.4%.


The average cumulative decline in prices compared to the maximum levels reached at the end of 2007 is, for the second consecutive month, below the 40% mark, sitting at -39.9%. The lowest cumulative falls are seen on the islands with “Balearic and Canary Islands” prices currently 27.8% below the maximum. “Metropolitan areas” and “Capitals and big cities” both remain above the 40% mark with cumulative falls of -45.9% and -41.7%, respectively.

First Quarter 2017

In the first four months of this year, the “Mediterranean Coast” is the category where the average price has increased the most, with a 5.4% increase. A similar trend is seen in “Capitals and big cities”, which showed an increase between January and April of 4.3%. The “Balearic and Canary Islands” also surpassed 4% in Q1 with prices on the islands increasing by 4.1%. There was almost no change in the category of “Rest of municipalities” with a variation of +0.4%. “Metropolitan areas” is the only category to show negative variation in Q1 with a decline in prices of -2.1%.

Malaga Airport Passenger Numbers Increase

The airport handled 12.9% more flights in Q1
Malaga airport handled 12.9% more flights in Q1

The airport handled 12.9% more flights in Q1

Málaga-Costa del Sol Airport closed the first quarter of 2017 with an increase in both passenger numbers and flight operations. When compared to the same period in 2016 there was an increase of 13.7% in passenger numbers, while the airport handled 12.9% more flights. Between January and March 2017, the airport handled 2,982,158 travellers and 23,797 flights.

It is worth noting that in 2016 Semana Santa (Easter) was in March while in 2017 it was in April. This means this year’s Semana Santa traffic will be included in the figures for the second quarter. This makes the increase even more impressive as despite last year’s Q1 figures including Easter travellers, 2017 still recorded an increase.

The bulk of passengers using Malaga airport in Q1 were on commercial flights, with the majority being carried on international flights. There was a 16.1% increase in the number of international travellers, while the number of international flights increased by 17.4%.

Almost half a million passengers travelled from Malaga to other Spanish cities, representing an increase of 2.6%. However, the number of domestic flights in or out of Malaga fell by 2%.


In March, the UK remained as the main source and destination for flights passing through Malaga. The airport handled 367,246 British travellers, 16.3% more than in March last year. German passengers were the next most numerous with just short of one hundred thousand, followed by Dutch travellers (73,067).

In terms of passenger numbers the busiest day in March was the last Sunday of the month, the 26th. On this day, the staff at Malaga airport handled 52,080 passengers. The busiest day in terms of flight operations was the last day, Friday 31st, when the airport managed the take-off and landing of 371 flights.


It is also worth mentioning that Malaga airport have added new parking facilities close to arrivals. The new lot has 91 spaces for light vehicles. Among the spaces there are several spaces reserved for those with reduced mobility.

AENA say the new parking seeks to improve the quality of the facilities on offer by meeting the demand for better parking in the proximity of the arrivals hall. Until now it was impossible to park close to arrivals and drivers had to use the main departures car park.

The new spaces are located close to the RENFE train station.