Although the complete set of statistics for annual property sales in 2016 will not be available until Feb/March 2017, we can tell by the trends in the 3rd quarter and October's figures that there has been a distinct slowing down of the market since June 2016.
According to the National Institute of Statistics, home sales in Spain grew by 7% in October, compared to the same period of the previous year. Although that is a respectable figure post financial crisis, it is well below the average growth for the first and second quarters of 2016, where in some regions of Spain growth was well into double figures.
The majority of the slowdown has been attributed to the cooling down of the overseas buyer's market – and of course, linked to the Brexit decision in the middle of the year and due to the uncertainty that has arisen across the whole of the EU.
From our own experiences, there is no reason to question these figures; there has been a noticeable slowdown in enquiries and footfall. From experiencing prolific growth well into the summer, we now find buyers' concerns regarding residency and healthcare in Spain more prevalent. In some cases potential buyers have put their plans on the back burner until there is more clarity regarding the major issues of movement and reciprocal services.
Our politicians have not helped! There has been much procrastination on all sides regarding the plight of foreign residents in Europe; who will be allowed to stay and who will have to go back to their home country? Instead of providing assurances and steadying the ship, we see the question kicked around like a political football.
No doubt there will be more of this to come in the New Year as the rhetoric is ramped up on both sides prior to the Brexit negotiations in the spring. Ultimately we will get a conclusion to our questions and things will improve again, so until that happens, we must keep our heads down and carry on as we always do.
We would like to take this opportunity to wish everyone a Healthy and Prosperous New Year.
Fuente Alamo Real Estate/Murcia Coast & Country Properties
Tel 0034 968 598 173