Ibiza recorded a 5% increase in property prices
Knight Frank’s Global Wealth Report 2016 has been released and it paints a rather pretty picture of Spain’s property market.
According to the report, global residential property markets rose on average by 1.8% in 2015, slightly under the previous year’s 2% increase.
However, in the latest report the data shows that 66% of the 100 cities included registered flat or positive growth, compared to 62% in the previous year.
Spain has four entries in the top 100, all of which saw increase above the global average.
Madrid placed highest at number 20, with a recorded increase in property prices of 5%. Furthermore, Madrid was the sixth highest ranking city in Europe.
Following the capital at number 21 is Ibiza, also recording a 5% increase in residential property values.
Also in the top 30 was Barcelona where residential property prices recorded an increase of 3.3%.
Our beautiful city of Marbella also made it into the chart and placed at number 35 with a recorded price increase of 2.8%.
Residential Hotspots
Spain also fared well in the report’s look at residential property hotspots with two entries.
The report states that the residential hotspots are picked according to a number of measures including economic and employment growth, new infrastructure, regeneration, quality of education, environment and lifestyle.
In the category of Best City for Investment, Madrid came in second, below Los Angeles, but above Shanghai.
The report highlighted the recovery of Madrid’s prime market with 2015 recording a 25% year-on-year increase, and also that the Spanish market has been outperforming many neighbouring European cities. Confirming what I have been saying recently, the report predicts steady price growth for the rest of 2016, although this could be down to supply constraints in some parts of Salamanca, Jerónimos and Chamberí.
Second Home
The party island of Ibiza was named as the third best location to purchase a second home. The island, who’s prime market has continued to outperform that of mainland Spain, was named along with Australia’s Gold Coast and France’s Côte D’Azur.
The report suggests reasons for Ibiza’s popularity amongst investors can be attributed to the abundance of year-round flights from most European cities, along with good international schools and a great 4G internet connection.
Areas such as San José and Ibiza Old Town have seen increased interest with many wealthy young professionals choosing to settle there.
