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

Rental Costs Fell Slightly in July

admin | 10th September 2024 | Andalucía, Costa del Sol, Málaga, Marbella, News, Prices, Property Market, Rental Property, Renting, Spain
Rental costs fell 0.5% when compared to June

Rental costs fell 0.5% when compared to June

In Spain, the cost of renting a home fell by 0.5% in July, bringing the average cost per square metre, per month, to €12.59. When compared to the same month in the previous year, the variation is +8.6%. This annual increase is the second highest recorded in the last 12 months. Spain has gone from a year-on-year variation of 3.4% in July 2023 to 8.6% in the same period in 2024. In the last 12 months analysed, the price of housing has gone from 11.59 euros/m² in July 2023 to 12.59 euros/m² in July 2024.

“The price of renting property in Spain remains at maximum levels across the board. In fact, 15 of the 17 autonomous communities have reached record levels in rental prices. In addition, for the first time in history, the price of rent already exceeds the tacit barrier of 1,000 euros per month on average. After two consecutive years of very significant increases and after having presented the sharpest acceleration in history, the price of rent is higher than ever. The main reason is the contraction of available supply that has occurred in recent years, of around 30%, together with the intense demand that is increasing because at the moment it is the main housing solution to access housing in Spain“, explained María Matos, Director of Studies for Fotocasa.

Autonomous Communities

If we look at rental prices compared to those of a year ago, we see that all communities saw year-on-year increase in price in July. The communities with increases higher than 10% are: Asturias (17.9%), Madrid (15.6%), Castilla-La Mancha (14.8%), Galicia (11.9%), Region of Murcia (10.3%) and Basque Country (10.0%). They are followed by the Valencian Community (9.7%), Canary Islands (8.4%), Castilla y León (7.9%), Andalusia (7.8%), Aragon (7.8%), Extremadura (5.6%), Catalonia (5.3%), Navarra (4.9%), Balearic Islands (2.7%), La Rioja (2.6%) and Cantabria (2.1%).

Regarding the ranking of Autonomous Communities with the most expensive rental property in Spain, Madrid and the Balearic Islands are in first place, with prices of €19.68/m² per month and €17.64 /m² per month, respectively. Eight more communities follow with prices above €10.00 /m² per month and they are: Catalonia (€16.84 /m²), the Basque Country (€16.00 /m²), the Canary Islands (€13.98 /m²), Cantabria (€13.31 /m²), the Valencian Community (€12.47 /m²), Navarra (€11.45 /m²), Asturias (€10.52 /m²) and Andalusia (€10.41 /m²).

Provinces

In 46 of the 48 provinces, the year-on-year price of rental housing increased in July 2024, except for Burgos and Tarragona. Increases of more than 10% were recorded in 15 provinces.

The provinces with year-on-year increases of more than 10% are: Palencia (25.1%), Asturias (17.9%), Cuenca (17.7%), Ávila (15.9%), Madrid (15.6%), Cáceres (13.6%), Santa Cruz de Tenerife (13.5%), Girona (13.5%), A Coruña (12.4%), Valencia (12.1%), Ciudad Real (11.4%), Málaga (11.3%), Bizkaia (10.5%), Murcia (10.3%) and Castellón (10.0%).

As for prices, 20 provinces exceed 10.00 euros per square metre per month. The three most expensive provinces are Madrid with €19.68 /m² per month, Barcelona with €18.89 /m² per month and Gipuzkoa with €18.30 /m² per month. On the other hand, the three cheapest provinces to rent a home are: Jaén with €6.11/m² per month and Ciudad Real with €6.14/m² per month.

Used Property Prices Up 8.5% on Last Year

admin | 9th September 2024 | Andalucía, Buying, Costa del Sol, Málaga, Marbella, News, Prices, Property For Sale, Property Market, Spain
Malaga is seeing record prices for sale and rental

Malaga is seeing record property prices

The price of second-hand housing in Spain fell by -0.7% in August. Compared to the same month in 2023, the price increased by 8.5%. This brings the average cost per square metre to 2,327 euros. This last year-on-year value (8.5%) is the second highest increase in the last 12 months.

Spain has gone from a year-on-year variation of 7.9% in August 2023 to 8.5% in the same period in 2024. In the last 12 months analysed, the price of housing has increased by 182 euros per square metre, rising from 2,145 euros/m² in August 2023 to 2,327 euros/m² in August 2024.

“The price of housing continues to rise and increase at a significant rate due to the imbalance between supply and demand that is becoming more and more pronounced. Spain’s housing capacity in the most sought-after areas is being compromised. At the moment, the limited supply cannot absorb the intense demand for purchases, which causes strong tension in prices. This context of such high price increases has been occurring for two consecutive years, since the rise in interest rates by the European Central Bank. However, now, with the de-escalation of rates, reductions in the Euribor and improvement in mortgage conditions, it is feared that demand will become even stronger, putting more pressure on the supply of available housing,” explained María Matos, director of Studies for Fotocasa.

Price by Autonomous Community

Looking at the price of second-hand property for sale in Spain compared to a year ago, we see that 17 communities saw a rise in the year-on-year price in August. Increases of more than 10% were seen in six communities. They are Madrid (19.2%), Balearic Islands (16.7%), Valencian Community (16.3%), Canary Islands (13.6%), Andalusia (13.4%) and Region of Murcia (11.2%). They are followed by the communities of Galicia (9.1%), Cantabria (8.9%), Asturias (7.3%), the Basque Country (6.0%), Castilla-La Mancha (4.6%), Castilla y León (3.2%), Extremadura (2.4%), Catalonia (2.3%), Navarra (1.9%), Aragon (1.9%) and La Rioja (1.7%).

As for the ranking of Autonomous Communities with the most expensive second-hand housing prices in Spain, the Balearic Islands and Madrid are found with prices of 4,407 euros/m² and 4,181 euros/m², respectively. They are followed by the Basque Country (3,193 euros/m²), Catalonia (2,819 euros/m²), the Canary Islands (2,624 euros/m²), Andalusia (2,166 euros/m²), Navarre (2,066 euros/m²), Cantabria (2,043 euros/m²), Valencian Community (1,971 euros/m²), Galicia (1,852 euros/m²), Asturias (1,758 euros/m²), Aragon (1,738 euros/m²), La Rioja (1,673 euros/m²), Castile and Leon (1,511 euros/m²), Region of Murcia (1,425 euros/m²), Extremadura (1,228 euros/m²) and Castile-La Mancha (1,226 euros/m²).

Provinces

In 44 of the 50 provinces analysed (88%) the year-on-year price of housing rose in August. In 16 provinces it exceeded 10%, specifically in Malaga (20.0%), Madrid (19.2%), Alicante (17.7%), the Balearic Islands (16.7%), Pontevedra (14.0%), Granada (13.9%), Las Palmas (12.9%), Segovia (12.7%), Valencia (12.1%), Toledo (11.9%), Cadiz (11.6%), Girona (11.6%), Castellón (11.4%), Santa Cruz de Tenerife (11.3%), Murcia (11.2%) and Lleida (10.6%). Provinces with year-on-year decreases are: Córdoba (-0.01%), Ávila (-0.1%), Jaén (-0.2%), Soria (-0.3%), Teruel (-3.9%) and Cuenca (-5.3%).

As for prices, the Balearic Islands and Madrid have exceeded 4,000 euros per square metre. The two provinces with the highest prices are: the Balearic Islands is the most expensive province with 4,407 euros/m², followed by Madrid with 4,181 euros/m². On the other hand, the province with the price per square metre below 1,000 euros is Ciudad Real with 964 euros/m².

Top Reasons to Invest in Marbella Real Estate

admin | 12th August 2024 | Andalucía, Costa del Sol, Holiday homes, Málaga, Marbella, Property For Sale, Property Market, retire, Tourism
The Marbella lifestyle is one of a kind!

The Marbella lifestyle is one of a kind!

Marbella, a gem on Spain’s Costa del Sol, has long been a magnet for property investors and holidaymakers alike. Its allure stems from a combination of stunning landscapes, a vibrant lifestyle, and a promising investment climate. As of 2024, investing in Marbella real estate remains a highly attractive proposition. Here are the top reasons why:

1. Prime Location and Climate

Marbella’s location is one of its greatest assets. Nestled between the Sierra Blanca Mountains and the Mediterranean Sea, it offers breathtaking views and a unique microclimate. With an average of 320 sunny days per year, the climate is consistently warm and pleasant, making it a year-round destination for tourists and expatriates. This constant influx of visitors and residents supports a stable and lucrative real estate market.

2. Strong Rental Market

The demand for rental properties in Marbella is robust, driven by both short-term holiday rentals and long-term leases. Tourists flock to Marbella for its beaches, golf courses, and cultural events, creating a high demand for vacation rentals. Additionally, expatriates and retirees seeking a permanent or semi-permanent residence in a sunny, luxurious setting contribute to the demand for long-term rentals. This dual market ensures steady rental income for property owners.

3. Luxury Lifestyle and Amenities

Marbella is synonymous with luxury. It boasts world-class amenities, including high-end shopping centers, gourmet restaurants, and exclusive beach clubs. The famed Golden Mile, a stretch between Marbella and Puerto Banús, is lined with opulent villas and five-star hotels. The area’s sophisticated lifestyle attracts affluent buyers from around the globe, driving up property values and ensuring a high return on investment.

4. Excellent Infrastructure

Investing in Marbella means benefiting from its excellent infrastructure. The region is well-connected with the rest of Europe, thanks to Málaga-Costa del Sol Airport, which is just a 45-minute drive away. Marbella also has a modern road network, making it easy to travel to nearby cities and attractions. The presence of international schools, top-notch medical facilities, and efficient public services further enhances its appeal to expatriates and investors.

5. Cultural and Recreational Attractions

Marbella offers a rich blend of cultural and recreational activities. From historic sites like the old town (Casco Antiguo) with its charming narrow streets and ancient architecture to modern art galleries and music festivals, there is something for everyone. Outdoor enthusiasts can enjoy water sports, hiking in the nearby mountains, or playing on one of the many prestigious golf courses. These attractions not only enhance the quality of life but also keep the real estate market vibrant and in demand.

6. Stable and Growing Real Estate Market

The real estate market in Marbella has shown remarkable stability and growth. Despite global economic fluctuations, Marbella’s property market has remained resilient, often outperforming other European markets. The demand for luxury properties continues to rise, driven by both domestic and international buyers. With a well-regulated market and transparent legal processes, investors can have confidence in their investments.

7. Favorable Investment Conditions

Spain offers favorable conditions for real estate investors. The country has implemented various incentives, such as the Golden Visa program, which grants residency to non-EU investors who purchase properties worth over €500,000. This program has attracted numerous investors from around the world, contributing to the growth of the real estate sector in Marbella. Additionally, property taxes in Spain are relatively low compared to other European countries, enhancing the attractiveness of investing in Marbella.

8. Potential for Capital Appreciation

Marbella properties have a strong track record of capital appreciation. The demand for high-end real estate in prime locations continues to drive prices upward. Investors who purchase properties in sought-after areas, such as the Golden Mile, Sierra Blanca, or beachfront locations, can expect significant returns on their investments over time. Moreover, with the ongoing development of luxury projects and infrastructure improvements, the potential for future appreciation remains high.

9. Diverse Property Options

Marbella offers a diverse range of properties to suit different investment strategies. Whether you’re looking for a modern apartment with stunning sea views, a traditional Andalusian villa, or a luxurious penthouse, Marbella has it all. This diversity allows investors to find properties that align with their investment goals, be it for rental income, capital appreciation, or a combination of both.

10. Quality of Life

Ultimately, one of the most compelling reasons to invest in Marbella real estate is the exceptional quality of life it offers. The combination of a mild climate, beautiful natural surroundings, rich cultural heritage, and a luxurious lifestyle makes Marbella an ideal place to live or vacation. This high quality of life attracts affluent individuals and families, ensuring a steady demand for high-end properties and sustaining the overall health of the real estate market.

Conclusion

Investing in Marbella real estate in 2024 presents a compelling opportunity for both seasoned investors and those new to the market. With its prime location, strong rental market, luxurious lifestyle, and favorable investment conditions, Marbella stands out as a top destination for real estate investment. Whether you’re seeking stable rental income, capital appreciation, or simply a piece of paradise to call your own, Marbella has something to offer. As always, thorough research and professional advice are essential to making informed investment decisions, but the potential rewards make Marbella a highly attractive option in today’s real estate landscape.

How to Finance Your Property Purchase in Marbella

admin | 7th August 2024 | Andalucía, Buying, Costa del Sol, Investment, Málaga, Marbella, New Developments, Property For Sale, Property Market, Spain
Always seek professional advice.

Always seek professional advice.

Marbella, with its stunning coastline, luxurious lifestyle, and warm climate, has long been a magnet for property buyers from around the globe. Whether you’re looking for a holiday home, a retirement paradise, or an investment opportunity, understanding how to finance your property purchase in Marbella is crucial. Here’s a comprehensive guide to help you navigate the financial landscape of acquiring a property in this sought-after Spanish city.

1. Assess Your Financial Situation

Before diving into the property market, it’s essential to have a clear understanding of your financial situation. Evaluate your savings, income, and existing debts. Determine how much you can afford as a down payment and what your monthly budget allows for mortgage repayments. Consider consulting with a financial advisor to get a realistic picture of your financial health.

2. Understand the Costs Involved

Purchasing a property in Marbella involves several costs beyond the property price. These include:

– Down Payment: Typically, you will need at least 30% of the property’s value as a down payment if you’re a non-resident. Residents may need less.
– Mortgage Costs: These include the interest rate, which can be fixed or variable, and the associated fees for setting up the mortgage.
– Taxes and Fees: Expect to pay property transfer tax, notary fees, land registry fees, and legal fees. These can add up to 10-12% of the property’s purchase price.
– Maintenance and Community Fees: Depending on the property, you may have ongoing maintenance and community fees.

3. Explore Mortgage Options

Securing a mortgage is a common way to finance a property purchase. In Spain, both residents and non-residents can obtain mortgages, though terms and conditions may vary.

– Spanish Banks: Major Spanish banks offer mortgages to non-residents, typically financing up to 70% of the property’s value. Residents might secure up to 80%.
– International Banks: Some international banks provide mortgages specifically tailored for purchasing overseas properties. These might offer more favorable terms for non-residents.
– Mortgage Brokers: Utilizing a mortgage broker can help you find the best deal. They have access to multiple lenders and can offer advice on the most suitable mortgage products for your circumstances.

4. Pre-Approval for a Mortgage

Obtaining pre-approval for a mortgage can give you a competitive edge in the Marbella property market. Pre-approval means that a lender has agreed, in principle, to lend you a certain amount. This not only gives you a clear budget but also demonstrates to sellers that you are a serious buyer.

5. Currency Exchange Considerations

For international buyers, fluctuating exchange rates can significantly impact the overall cost of your property purchase. Consider using a currency exchange service to lock in favorable rates and manage the timing of your currency transactions to minimize costs.

6. Legal and Tax Implications

Hiring a local lawyer is advisable to navigate the legal complexities of buying property in Spain. They can help with:

– Due Diligence: Ensuring the property has no legal issues, such as unpaid debts or encumbrances.
– Contracts: Drafting and reviewing the purchase contract.
– Taxes: Advising on tax obligations, including property transfer tax, annual property tax (IBI), and capital gains tax on future sales.

7. Investigate Alternative Financing Methods

While mortgages are common, there are other ways to finance your property purchase:

– Cash Purchase: If you have sufficient funds, a cash purchase can simplify the process and might provide leverage to negotiate a better price.
– Equity Release: If you own property elsewhere, you might release equity to finance your Marbella purchase.
– Developer Financing: Some property developers offer financing options directly, which could be beneficial, especially for new developments.

8. Consider Investment Potential

Marbella is not just a beautiful place to live; it also offers excellent investment potential. The demand for rental properties is high, particularly for holiday rentals. If you plan to rent out your property, factor in potential rental income into your financial planning.

9. Seek Professional Advice

Navigating the financial and legal aspects of purchasing a property in Marbella can be complex. Engaging professionals such as real estate agents, financial advisors, lawyers, and mortgage brokers can provide valuable insights and help ensure a smooth transaction.

10. Finalize Your Purchase

Once your financing is in place, and all legal checks are completed, you can proceed to finalize your purchase. This typically involves signing the deed of sale before a notary and registering the property in your name.

Conclusion

Buying a property in Marbella is a dream for many, and with careful financial planning and the right advice, it can become a reality. By understanding the costs, exploring financing options, and seeking professional guidance, you can navigate the process with confidence and look forward to enjoying your new home in this Mediterranean paradise.

Rental Costs Continue to Rise Across Spain

admin | 29th July 2024 | Costa del Sol, Marbella, News, Prices, Property Market, Rental Property, Renting
Monthly rental cost up 9% since last summer

Monthly rental cost up 9% since last summer

In the first six months of 2024, Spain has seen continuous growth in the costs of rental housing. The second quarter closed with an increase of 2.3%, and a year-on-year increase of 9%. This brings the average price per square metre, per month, to 12.65 euros.

“Rental prices continue to rise sharply and at a significant rate, mainly due to the imbalance between supply and demand. Currently, demand is intense with growth projections and the available supply is gradually shrinking. The problem is getting bigger and bigger. To stop this tightening, more rental housing is needed through promotion, promoting the rehabilitation and transfer of housing, reinforcing legal security and regulatory certainty and creating a territorial policy of decentralization of opportunities so that demand is not only concentrated in the large urban centers,” explained María Mator, spokeperson for Fotocasa.

Autonomous Communities

The second quarter of 2024 saw the cost of renting a home in Spain increase in 15 communities, while year-on-year, 17 communities saw prices rise.

The increases seen are: Cantabria (13.8%), Region of Murcia (10.2%), Madrid (7.6%), Asturias (6.6%), Galicia (6.3%), Extremadura (6.0%), Basque Country (4.9%), Catalonia (4.7%), Valencian Community (4.2%), Aragon (3.2%), Balearic Islands (3.1%), Canary Islands (3.1%), Castilla y León (2.8%), Castilla-La Mancha (1.7%) and Andalusia (0.8%).

Regarding the ranking of prices by communities, Madrid and the Balearic Islands occupy the first positions, and exceed the barrier of €18.00 p/m², specifically Madrid was up to €19.71p/m² per month, and the Balearic Islands saw prices rise to €18.09p/m² per month. Both communities reach new highs, exceeding the prices of the historical records. They were followed by the communities of Catalonia with €17.26 p/m² per month, the Basque Country with €16.10 p/m² per month, the Canary Islands with €13.87 p/m² per month, Cantabria with €13.74 p/m² per month, Valencian Community with €12.43 p/m² per month, Navarra with €11.21 p/m² per month, Andalusia with €10.56 p/m² per month and Asturias with €10.35 p/m² per month.

Provinces

In the provinces, this second quarter of 2024 presented 42 quarterly increases, with 48 interannual increases. The four provinces that saw the largest quarterly increases were: Guadalajara (15.7%), Cantabria (13.8%), Jaén (11.8%) and Murcia (10.2%). On the other hand, the provinces that saw quarterly decreases are: Toledo Teruel (-7.1%), Huesca (-4.4%), Valladolid (-3.9%), La Rioja (-3.7%), Navarra (-3.3%), Gipuzkoa (-0.7%) and Burgos (-0.6%).

Regarding the ranking of prices by province, Madrid and Barcelona occupy the first positions and exceed the barrier of €19.00 p/m² per month. Specifically, Madrid increased to €19.71 p/m² per month and Barcelona to €19.49 p/m² per month. Both provinces reached new maximums, exceeding the previous historical highs. The most economical provinces are Ciudad Real with €6.09 p/m² per month, Teruel with €6.13 p/m² per month, Jaén with €6.17 p/m² per month, Palencia with €6.86 p/m² per month, Cáceres with €6.88 p/m² per month and Badajoz with €6.95 p/m² per month.

Spanish Property News

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