The demand for holiday homes in Spain is definitely on the rise, according ot an article in El Pais. Tinsa-supplied data shows that Areas with clear signs of recovery in the holiday home market are the Balearics, Canaries, Costa del Sol, North Alicante and the Costa Maresme.”
This growth is primarily driven by overseas buyers, with the Nordic countries, plus buyers from Britain and Belgium constituting the major countries of origin. According to Tinsa’s commercial director, Pedro Soria, the price of Spanish holiday homes is rising and keeping pace with demand and Málaga is among the regions with the highest price hikes. Others include Mallorca, Ibiza and parts of Huelva and Alicante. On average, the prices in these areas are up by around the 9% mark, which is in contrast to places like the Costa de Almeria and Costa Tropical, where prices have fallen. The Costa de la Luz has also seen a price decrease of just over 3%. The average for all of Spain is a plus 3.25%.
Some people are concerned about the increase in prices, because they don’t want to see a return to the pre-global recession situation, which proved unsustainable once the crisis hit the construction industry and particularly buyers’ bank balances. Undoubtedly, property valuations were excessive back in 2007, but in the interests of keeping some perspective, it is worth remembering that generally Spanish property prices are still 46% lower than in 2007, according to Tinsa.
Another factor that has boosted holiday home sales in Spain is the re-entry of developers into the market with a swathe of new build projects catering to the lifestyle tastes of international buyers. Until this time, the majority of properties available were resales and as a number of real estate agents have been heard to comment, these didn’t always fulfil buyers’ expectations, with the majority of them looking for residences in the contemporary style.
The local market for holiday homes on the Costas, or in the Balearics is still somewhat depressed due to worries about economic stability and salaries. On the other hand, a number of Spanish investors have returned to the scene and are buying up holiday homes for short-term rentals. This may be affected in the future by the current trend of restricting holiday lets in Spain’s main tourist cities in particular may curb that market sooner rather than later.
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