Housing Update June 2017

Foreign buyers increase as British buyers decline by 28%.

Six months into 2017 and some very interesting Spanish property market figures have been released by the official bodies.

The Spanish property market is still expanding for foreign buyers, but whilst Dutch, German and Scandinavian buyers are increasing, we can now see for the first time that UK buyers have dropped off by 28%. UK buyers still, by far, are the largest group among overseas buyers, but where once they made up over 30% of all foreign buyers in Spain, pre-Brexit, they now account for only 19%!

With the decline in value of the UK pound and uncertainties over free movement, we shouldn't be surprised that a significant proportion of UK buyers are holding off their decision to purchase until they receive more assurances from the EU and British government; at which point, it is anticipated the pound will gain in strength against the Euro resulting in a surge of UK buyers returning to Spain.

Who else is buying Spanish property?
Unsurprisingly, northern Europeans where the Euro is the national currency are the fastest growing group of property buyers here in Spain. There has been an increase of 58% in Dutch buyers, 44% in Italians and 23% of Germans. Countries that don't operate the Euro, such as Norway and Russia have, like the UK, also shown a decline in buyers, largely due to the weakness of the Krone and Ruble against the Euro.

Are property sales increasing?
The simple answer is yes!
According to the Land Registry there was a healthy year-on-year 28% increase in sales in the first quarter of 2017. This figure varies across the 27 regions in Spain; however Murcia was in a healthy 10th place with an increase in sales of 17%!

From our perspective.
Yet again, our experiences over this period reflect the market realignment described above, with healthy sales increases and a larger slice of the Northern European market. Property prices have been quite static since the start of the year and buyer's offers are generally 10-15% below the asking price.

Kenneth Whettall
Commercial Director
Fuente Alamo Real Estate/Murcia Coast & Country
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Tel 0034 968 598 173