While several market reports and statistics have revealed over the past couple of years that the Spanish property market is on the rebound following the recessions, further recent reports prove that we are currently in the midst of the best rise in the property market in almost six years.
Increasing Property Sales Throughout Spain
The Spanish Economic Ministry published new statistics stating that the Costa del Sol property market is seeing a massive boost, with the number of properties sold in the month of June being higher than it has been in almost six years, with more than 35,000 sales registered nationwide.
These numbers are a 19.4% increase on the sales recorded in June 2015 and are the highest they have been since August 2010.
2016 has so far proved to be a good year for the nation’s real estate market, as we haven’t seen such a year-long positive impact since 2011, when the market only just started to recover from one of the worst recessions in living history.
Is the Nation’s Increasing Tourism to Thank for the Rise in Property Sales?
While it may only be coincidence, experts are wondering if the record-breaking increase in tourism on the Costa del Sol and Costa Brava could be what is boosting the nation’s property market. According to the Airports Council International Europe (ACIS), Spain is still seeing increasing popularity amongst international holidaymakers, with both Málaga and Alicante airports being two of the most popular airports in Europe, with a massive boost in the first half of 2016 alone.
During the first six months of 2015, over 32 million tourists were recorded entering the country, half the number of the tourists that came to Spain during 2015. These numbers were recorded prior to the nation’s busiest months of July and August.
Earlier this year the president of Turismo Costa del Sol, Elías Bendodo, said; “These figures confirm what a magnificent year we’re experiencing on the Costa right now. Not only does it show record numbers, but also our growth in a European context. The steady growth in the past six months confirms our prediction that 2016 will be a record year for tourism here.”
Mr Bendodo’s suspicions were correct, with records showing that Spain has just experienced its busiest July in history, with more than 9.6 million international holidaymakers visiting Spain throughout the month. The Costa del Sol came in second as the region with the largest increase of tourists in Spain, behind Barcelona and before the Balearic and Canary Islands.
Tourism Boosting New Constructions Throughout the Country
While the increase in tourism is always welcome and has helped boost the economy, there are still some Spaniards who worry that this new peak in national tourism could become a problem due to the lack of available accommodation, suggesting that new apartments and hotels should be built.
However, these worries were soon put to rest with data showing that national construction companies have already responded, with new builds being at its highest level in over five years. Many of these projects are being funded by international property investors and developers turning to opportunities in Spain’s more popular regions, including the Costa del Sol.
19% Increase in Mortgage Registrations and a Rise in Loan Capital
Further confirming that the property market is on the rise, the Spanish National Statistics Institute (INE) has published data showing that during the first six months of the year, over 145,000 mortgages had been registered, a 19% increase from last year. With over 25,000 mortgages registered in the month of June alone, an increase of 15.5% from June last year.
The average loan capital has also risen to €112,516, a 7.5% increase since last year, showing that property values are also on the rise, another win for the national property market.
The Costa del Sol: A Spanish Favourite Amongst International Buyers
The beautiful sandy beaches, stunning mountain ranges, historic cities, the grace of the Spanish people, improving economy and, of course, over 320 days of sunshine every year, what’s not to love about the Costa del Sol?
A recent survey by InterNations Expat has revealed that almost all expats that live in Spain are satisfied with their overseas life, citing the warmth, landscape and family-friendly atmosphere as the main reasons for their decision to move to Spain.
The Spanish people are famed for their warmth and friendliness, with over 86% of the 14,000 people quizzed for the survey stating that this is one of the many reasons they love living in Spain. This is far above the global average of 59% regarding their chosen nation’s residents.
Of course, the weather is a huge contributing factor that attracts international buyers as well as holidaymakers, with 84% of residents polled saying that the Spanish climate is a major positive factor of life in Spain.
It’s come as no surprise that Málaga has previously been awarded for having the best climate in Spain, with people singing the praises of the province’s mild winter, low minimum temperatures and moderate summers due to the influence of the sea.
Further surveys conducted earlier in 2016 have also shown that Málaga was rated as Spain’s most satisfactory place to live and that Spain is a first choice for Brits wanting to retire overseas.
