Spanish Property Market Report | Q2 2016
UK referendum jitters may be slowing Spanish property sales after two solid quarters of real estate investment growth that has been led by British buyers with a keen eye for Spanish bank bargains and low cost mortgages.
Spanish property registrars reported a record number of foreign buyers in Q1 2016 with most of the bank bargains and an increasing number of new homes being snapped up by UK purchasers. Although still the busiest nationality in the market, their share of sales was down slightly at 2.7%, as some UK-based buyers took in the full implications of a possible UK exit (Brexit) from the EU.
Sales to foreigners reached a new peak in the registrars’ records in Q1 2016 and hit 12,856 – which was 12.9% of the total sales made in that quarter. The top five were unchanged, with the Brits leading the way followed by France, Germany, Sweden and Belgium.
Since publication of the registrars’ report there has been a further slowdown by British buyers, but some real estate professionals are booking high levels of property viewings for the peak months of July and August. “It looks like many British buyers have rescheduled their purchase timetable so that they know whether Britain is in or out of the EU,” said Spanish real estate lawyer, Javier de Juan.
Much of the buying interest is in Spanish bank owned bargain property that comes with generous mortgages of up to 100% of prices that still average 44% below the pre-recession peak.
A spokesman for international property and mortgage brokers, WalkerSpain.com said:”Regardless of the UK referendum result Spain will remain the number one holiday homes destination for northern Europeans. Tourism arrivals are currently at record levels and it’s no surprise that the same goes for property sales in Spain.”
Despite some recent price increases, Spanish homes remain undervalued compared with other countries.
Best buys in the Spanish property market for Q2 2016 include new sea view apartments in the ever popular Costa del Sol at EUR 131,000 with 100% mortgages at 2% rate of interest and Spanish bank owned, walk to beaches new apartments at Cala Pi, Mallorca from EUR 128,000 – the lowest 2-bed apartment prices on the holiday island.
Locations to watch in 2016: Fuerteventura and Murcia where there are still brand-new bank-owned key ready apartments and villas at sub EUR 100,000 prices.
Spanish property market report Q2 2016 update | Author: Walker Property Spain