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

Cost of Renting Increased 10% in August

Average rental cost increased 10% in August
Average cost of renting increased 10% in August

Average rental cost increased 10% in August

The average cost of renting increased by 10% year-on-year in Spain in August. This is the third year-on-year increase over 10% in 2017, in addition to 30 consecutive months of annual growth, according to the latest data from fotocasa.

The year-on-year variation recorded this month is the third highest recorded this year: in May it rose 10.5%, and in April the increase was 10.2%.

The average cost of renting in July (8.08€/m² per month) returns us to the figures of November 2010 when the average monthly rental cost was 8.10€/m².

“The rise in rental prices is widespread throughout the country, although it is most evident in Catalonia, the Canary Islands, the Balearics and Madrid. But our data starts to show year-on-year declines in some regions and monthly and quarterly declines in some districts of Barcelona and Madrid that indicate a trend towards the normalization of this market. This does not mean that we will not continue to experience strong price increases, as revealed by this third year-over-year increase of over 10% so far this year,” explains Beatriz Toribio, Head of Studies at Fotocasa.

Price Evolution by Autonomous Community

In August 2017, the average cost of renting increased in 10 autonomous communities on a monthly basis and 16 in the inter-annual level. The largest annual increases were in Catalonia (18.2%), the Canary Islands (11.3%), Madrid (11.2%) and the Balearic Islands (10.4%).

As for the price ranking, Catalonia is the most expensive community to rent a second-hand home, with an average monthly price of 12.13€/m² per month. It is followed by Madrid (11.66€/m² per month) and the Basque Country (10,80€/m² per month). On the opposite side, Extremadura (4.78€/m² per month) and Castilla-La Mancha (5.03€/m² per month) are the two communities with the most affordable rental prices.

Looking at the price evolution by province, 30 of them recorded an increase in the average rental price with respect to the month of July, with increases ranging from 3% in Teruel to 0.1% in Murcia and Segovia.

The rental price fell in 18 provinces with variations ranging from -0.1% in Girona and Pontevedra to -3.9% in Huelva. Navarre and Orense maintained stable prices with respect to the month of July. The price increased in 16 districts of Madrid.

Costa del Sol Q1 House Sales 2004-2017

Q1 Sales Graph - 2004 - 2017

According to the latest figures from the INE, July saw a 16.8% increase in the number of homes sold in Spain, when compared to the previous year. So, has the market stabilised? Are sales back up to pre-crisis levels? To try and answer those questions we take a brief look at the Q1 sales results since 2004 in Estepona, Benahavís, Mijas and Marbella – four of the most popular areas on the Costa del Sol.

Some areas of the coast have now not only recovered from the financial crisis, but surpassed pre-crisis sales numbers, while others have remained stable.

Based on the financial crisis taking hold at the end of 2007, you would expect 2008, ’09, ’10 to be the worst years but it doesn’t seem so clear cut. For example, from ’07 to ’08 Estepona saw a big increase in sales, while Benahavís was almost unchanged. Marbella and Mijas however took a hit with their sales figures dropping significantly.

To 2009 Benahavís actually saw a significant increase while the other three areas continued to drop with Estepona seeing fewer than 200 sales for the first time since 2004. 2010 seemed to be a turning point for Estepona and Marbella with both seeing an increase in sales. However, the following year saw the lowest figures in Benahavís over the last 13 years. From 2012 it is almost all positive and therefore I would tentatively put forward 2012 as the year the Costa del Sol recovery began in earnest.

Q1 Sales Numbers since 2004

Estepona

Estepona has had a good start to 2017 with 946 home sales in the first quarter. Compare this to the 108 sold in 2004, or even the 616 sold in 2007 just before the crisis took hold. We see that the town has recorded its highest Q1 sales figures in 13 years. First-quarter sales figures in Estepona have increased year-on-year since the start of 2015 having been up and down for the preceding few years.

From 2010 to 2013 the results were quite stable with figures in the two-hundreds recorded each year. 2014 saw a leap with the number of Q1 sales more than doubling, compared to the previous year. A slight decline to 2015 preceded two years of increases.

Estepona has seen a lot of investment over recent years with government money cleaning up the old town and investing in the marina. The town, only 20 minutes from Marbella, is an “up-and-coming” area as far as real-estate is concerned. With prices typically 10-20% lower than in Marbella, Estepona is becoming a first-choice for many house hunters.

Benahavis

Q1 sales figures in Benahavis seem to have remained stable for the last 13 years with the exception of a peak in 2009 and a dip in 2011. Following the dip there appeared to be a recovery in 2012 which was short lived, dropping again in 2013. Since then, the numbers have always been above 100 with each year being only marginally different. This year has seen sales almost matching those of 2006/07 which were considered “boom” years.

The hillside town of Benahavís is expanding. There are a couple of new projects underway in the village and on the outskirts. It is a quiet town, great for retirement, but is always popular with tourists looking for real Spanish food or a tranquil walk in the hills. There is also a river that runs alongside the town which has waterfalls and plunge pools and always attracts the brave for a cool dip during the summer.

We must bear in mind that Benahavís is not only the small village but also includes areas such as La Quinta, Los Almendros, El Madroñal and La Zagaleta.

Mijas

Encompassing Mijas Costa and Mijas Pueblo, the town has seen a significant drop in the number of home sales since 2007. From 2004 sales numbers increased steadily only slowing when the crisis hit. In the first quarter of 2017 the town saw a little under half the number of sales seen ten years ago. Sales numbers fell year-on-year from 2007 through to 2011 with 2012 showing the first positive annual variation. Only since 2013 do the results begin to rise, followed by 4 consecutive annual increases.

With coastal property prices increasing at a faster rate than rural property, and a higher number of coastal properties on the market, demand is high and I would expect to see the sales figures continue to increase over the next few years in Mijas Costa with a slower yet consistent increase in the sale of property in Mijas Pueblo.

Marbella

Marbella has always been one of the most sought-after areas of the coast and the sales figures prove it. The only one of the four areas to see more than 1,000 sales in Q1 of this year, yet still lower than in 2007, the Marbella area is seeing a huge increase in the number of new developments under construction. Following a few years of little-to-no construction activity this year has seen the return of many cranes to the horizon. This is clearly going to fuel the increase in sales adding a surplus of property to an already saturated market. However, we see that sales in the town have increased every year since 2012 which shows that the resale market has also seen a resurgence in recent years.

With new property going up all the time and with an ever-expanding number of resale properties on the market, expect to see the sales figures for Marbella continuing to increase over the next few years. However, if the weak pound keeps falling there may be a further drop in sales to Brits, who still account for a large proportion of the total property sales across Spain.

Q1 Sales Graph - 2004 - 2017

Source: Fomento

Price of Housing Down in August

Second-hand housing prices fell slightly in August
Price of housing fell slightly in August

Prices have been stable recently

According to the latest monthly sales price report from pisos.com, the average price of second-hand housing in Spain was 1,528 euros per square metre in August 2017. This figure represents an increase of 0.2% compared to the previous month. On a year-on-year basis the variation is -1.99%.

The price of housing has recently been fluctuating slightly month-to-month but within reasonable margins, “except in certain cities like Madrid and Barcelona, where the scarcity of new constructions and the greater accessibility of mortgages are significantly enhancing the market,” says Miguel Angel Alemany, general director of pisos.com. “The second-hand property market is very pressured by demand, which is leading operations that already reach pre-crisis levels.” he added.

Prices

The most expensive regions in August were the Basque Country (2,548€/m²), the Balearic Islands (2,330€/m²) and Madrid (2,000€/m²). The cheapest regions were Castilla-La Mancha (843€/m²), Extremadura (1.063€/m²) and Murcia (1.160€/m²).

Interannually, the only positive variations occurred in the Canary Islands (9.14%), the Balearic Islands (7.63%), Galicia (2.15%) and La Rioja (0.62%). The most significant negative variations seen in Castilla-La Mancha (-9.66%), Aragon (-9.13%) and Navarre (-8.26%).

By Province

The largest annual increases in the price of housing were seen in Santa Cruz de Tenerife (10.21%), the Balearic Islands (7.63%) and Malaga (5.87%). The most pronounced declines in this period were Toledo (-13.24%), Almería (-12.67%) and Albacete (-11.78%).

In the ranking of provinces by price, the first position in August 2017 was for Guipúzcoa, with 2,828€/m², followed by Vizcaya (2,588€/m²) and the Balearic Islands (2,330€/m²). On the opposite side was Cuenca, which closed the ranking with 654€/m², followed by Ciudad Real (766€/m²) and Toledo (770€/m²).

Provincial Capitals

The most significant increases were seen in Barcelona (10.47%), Palma de Mallorca (8.28%) and Logroño (4.33%). Meanwhile, the largest falls were in Cadiz (-15.07%), Albacete (-13.79%) and Zaragoza (-11.67%).

Ordering the provincial capitals by price, puts Donostia-San Sebastián as the most expensive, with 3,806€/m². Behind them were Barcelona (3,780€/m²) and Madrid (2,942€/m²). The capital of Avila was the most affordable with 944€/m². Other capitals of cheap provinces were Cuenca (990€/m²) and Cáceres (1,060€/m²).

Spain Saw Over 10 Million Tourists in July

Everywhere was busy in July!
Everywhere was busy with tourists in July!

Everywhere was busy in July!

As the summer draws to a close and the country begins to relax, the tourist statistics released by the INE once again break records.

Spain received a massive 10.5 million international tourists in July, 10.1% more than in the same month last year.

Source

No prizes for guessing where the majority of those tourists came from; the UK accounted for 2.3 million visitors, a huge 22.1% of the total visitors. This represents an increase of 7% when compared to July 2016.

French and German travellers also came in large numbers. Over 1.5 million French and 1.4 million Germans chose Spain for their July holiday. These figures represent increases of 2.8% and 8.7%, respectively.

Among other countries to show significant increase in the number of visitors, Ireland sent 36.5% more than in July last year. Russian travellers increased by 23.9% while travellers from Switzerland increased by 17.7%.

Destination by Autonomous Community

Catalonia was the most popular with 24.3% of tourists choosing it for their primary destination. This represents 2.5 million tourists, 6.5% more than in July last year. The main countries of residence of the tourists in this community are France (with 23.4% of the total) and United Kingdom (10,1%).

The Balearic Islands were next with 23.6% of the total choosing the islands as their primary destination. Around 2.5 million descended on the islands in July, an increase of 5.3%. Of those, 29% came from Germany and 27.5% came from the UK.

Andalusia, home to Marbella and Puerto Banus, took 13.0% of the total (1.4 million tourists) in July, an annual increase of 12.5%. The United Kingdom is the main country of origin with 25.6% of the total, followed by Nordic countries (13.0%).

In the rest of communities, the number of tourists in July increased by 17.1% in Valencia, 14.8% in the Community of Madrid and 4.0% in the Canary Islands.

Year-to-Date

In the first seven months of the year, the total number of international tourists visiting Spain was 46.9 million, an annual increase of 11.3%.

The main emitting country for that period is the UK with 10.9 million Brits arriving in Spain, an increase of 8.7% over the same period in the previous year. Germany accounts for 6.9 million tourists, growth of 9.4%. French travellers account for 6.3 million, an increase of 4.3%.

In the first seven months of 2017, the communities that received the most tourists are Catalonia (with almost 11.2 million and an increase of 9.4% over the same period in 2016), the Canary Islands (with more than 8.1 million, growth of 8.8%) and the Balearic Islands (with about 7.9 million, an increase of 7.5%).

Cost of Renting Increased in Second Quarter

Rents in Marbella increased 11.6%
Cost of renting increased 11.6%

Rents in Marbella increased 11.6%

The average cost of renting increased in Spain by 4.8% during the second quarter of 2017. The average price per square metre now stands at 9.4 euros per month, according to a report from idealista.

Average rental prices increased in all the autonomous communities during the second quarter except for Euskadi where prices fell by 0.2%. Three communities saw double-digit increases in rental costs: the Balearic Islands (14.2%), the Canary Islands (13.4%), and Murcia (11.1%).

After a slight slowdown in the previous quarter, the city of Barcelona has seen a small quarterly decrease in prices of -1.4%, leaving the cost of a square metre at 17.8 euros per month. On the year-on-year rate, the city continues to record increases (10.6%).

Madrid also ended the second quarter with a fall in the price of rental property of -1.1%, which leaves the average cost per square metre at 14.6 euros per month. On the year-on-year variation the city saw an increase of 11.4%.

The average cost of renting increased 1.7% in the city of Valencia during the second quarter. This rise has left the price per square meter at 7.7 euros per month.

Andalucía

The community of Andalucía saw a quarterly increase of 6.3% with a year-on-year increase of 9.1%. This puts the average cost per square metre at 7 euros per month. In the Province of Malaga, the quarterly variation was +10.2%, while on the year-on-year variation the increase was 16.5%, putting the average cost per square metre at 9.1 euros per month.

In Marbella, the price of renting increased in Q2 by 11.6%. The average cost per square metre now stands at 12.1 euros per month. On the year-on-year basis the increase was 7.2%, ensuring Marbella remains as the most expensive municipality in Andalucía for rental property.

In Estepona, the quarterly increase was 6.9%, leaving the cost per square metre at 9.4 euros per month.

The only town in Malaga to outdo Marbella in terms of the quarterly increase was Fuengirola. In this tourist-magnet the cost per square metre increased by 11.9% in Q2 to reach 9.5 euros per month.

Torrox recorded the largest annual increase with prices rising 15.7% to reach 7 euros per square metre per month.

All other cities in Malaga saw increases in rental costs with the smallest increase being 2.7% in Torre del Mar.

Other Capitals

It is worth mentioning the rise of the island capitals. In Las Palmas de Gran Canaria, owners have increased their asking prices by 11% in the second quarter to reach an average cost per square metre of 10.4 euros per month. In Santa Cruz de Tenerife the increase was 10.8%, reaching 7.2 euros per m² per month. Palma de Mallorca saw the cost of renting increase by 8.9% compared to the previous quarter. The average cost of a square metre of rental property is now 12.7 euros per month.