There has, understandably, been a huge focus on Brexit recently. While much speculation has been said about how the UK will fair, what does this mean for our European counterparts?
Spain’s recovery has been phenomenal over the last two years which has filtered through into the property market. Much of the property recovery only started to happen when we saw prices rising around 12-18 months ago and whilst there was some initial concern as to whether Spain would bounce back to its former glory, it certainly seems like the appetite is back with a vengeance.
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
The global real estate crisis hit Spain in early 2007. In Barcelona, home prices plunged by as much as 40 percent and sales didn’t pick up until 2014, said Alexander Vaughan, a partner at Lucas Fox International Properties.
“From 2014, there were a lot of international and institutional investors coming into Spain, and that really brought confidence back into the market,” he said. “Only last year prices started going up slightly, but they’re not yet close to recovery.”
Definitions of the Costa del Sol can differ, but it is frequently seen spanning roughly from Nerja in the northeast down to Algeciras in the southwest, and running up to 10 miles inland. However, few brokers dispute that its heart and soul is Marbella, a cosmopolitan city of almost 150,000 near the geographic center of that stretch...
Spain's convalescing construction sector was hoping to move on from a national economic crisis which at its height saw abandoned building sites and bankrupt infrastructure projects littering the landscape.
Residential property sales in Spain increased by almost 20% in the first half of this year suggesting that the real estate market recovery is well underway.
The latest figures from the General Council of Notaires shows that transactions were up by 19.6% in the first six months of 2016 to a total of 225,551 sales, and prices increased by 6.1% year on year.
The data reveals that new home sales are not boosting the recovery and indeed falling. Sales of non-new homes increased by 19.29% year on year, accounting for 68.1% of all the homes sold but new homes sales fell 13.6%.
Rents on prime office assets across Europe grew by 1.5% quarter on quarter in the second quarter of 2016 compared to 0.7% in the previous quarter, the strongest increase in the past five years.
Rents in Europe outpaced the Americas and Asia Pacific regions with Stockholm recording the strongest growth in region of 9.4% followed by Berlin with growth of 6.3%.
The data from real estate firm JLL also shows that Paris saw growth of 3.4% as limited new supply and more robust take-up pushed up prime rents for the fourth consecutive quarter while in Southern Europe, the momentum in the market recovery has continued in Milan with rents up 2% and in Barcelona up 3.7% and Madrid up 0.9%.
Residential property sales in Spain increased by 23.6% in May year on year, the highest figures since January 2013, the latest official figures show.
The figures from the National Statistics Institute also show that home sales have now increased year on year for four months in a row. However, sales did fall back slightly from the year on year figure of 29% recorded in April.
The second hand market and, to a lesser extent, sales of new homes, were responsible for the May increase, up by 26.7% and 12% year on year respectively.
There are signs that British buyers are still keen on buying property in Spain but those selling are likely to be more successful if they lower their asking price.
Agents are reporting continued interest in the Spanish property market from British buyers despite the decision to leave the European Union. This is coming from holiday home buyers and those considering moving to Spain to live.
But the latest index suggests that sellers in Spain are having to be realistic about the price their property is likely to achieve outside a few popular areas. Data from the latest asking price index from Idealista shows they fell national by 3.1% in June year on year.
The prime property market in Spain has recovered strongly with buyers from Latin America and the Middle East rising, according to the latest index report.
The recovery of the market mirrors the recovery of Spain’s economy which is expected to see growth of 2.6% in 2016, more than the UK and Germany, says the analysis from international real estate firm Knight Frank.
‘Ultra-loose monetary policy by the European Central Bank and low oil prices have led to an increase in consumer spending, higher employment and rising household incomes. The market fundamentals are improving,’ said Kate Everett-Allen, Knight Frank partner, But she added that a backdrop of global uncertainty remains.
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