We recently reached out to some of our estate agents in Spain to gain an insight into the current state of the Spanish property market. Despite global uncertainties, Spain's property market continues to thrive, attracting international buyers and experiencing a big boost in demand for rentals.
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Positive market performance amid global challenges
Antony Neilson, Founder and Managing Director at The Property Group, emphasised Spain's resilience in the face of economic challenges. “There's lots of doom and gloom in the UK and Europe, but Spain is still holding its own.” Anthony highlighted the growing interest of potential investors in Spain, driven by increased demand for property rentals. This could partly be due to the remote working revolution. Anthony says “buying property in a tourist area, such as the Costa Del Sol, is usually a good investment generally because you're pretty much guaranteed to have your property occupied during peak times.” Search Costa Del Sol properties.
Spanish market challenges
Mia Pearlman founder of Affinity Spain says “the increasing number of agents in Spain, including some unregulated ones, poses a concern.” To ensure a safe property purchase, Mia advocates for a licensing system and regulations for agents, similar to those in other countries.
Anthony adds “it’s a challenge to get our clients to understand the market in Spain, because buyers tend to register with all different agents. But that's not really the way it works over here. Real Estate agents collaborate with each other, so the key thing is to find an agent you like and stick with them because that way you'll get more from your agent.”
Another major challenge highlighted by Claudia Zezukiewiets, a marketing strategist for Let Us Ibiza, is the scarcity of available properties, a consequence of heightened demand and reduced stock levels post-pandemic. The supply-demand imbalance poses difficulties in matching potential buyers with suitable properties. However, Claudia anticipates an influx of new properties onto the market in the coming months. Search Ibiza properties.
New API law could be a game changer
The regional Valencian government has introduced a groundbreaking API law that has the potential to revolutionise the market if it gets rolled out across the country. This legislation mandates that estate agents must obtain certification from the local regulatory body, therefore instilling confidence in buyers that they are dealing with legitimate agents. Antony believes this law will bolster transparency and trust in the industry.
Formation of the Leading Property Agents of Spain (LPA)
The issue of trust and transparency has started to be addressed already by estate agents operating on the Costa Del Sol. Mia is excited about the formation of the Leading Property Agents of Spain (LPA), a group of agents on the south coast focused on regulating the market. With a strong code of conduct and accountability, LPA aims to create a safe environment for property transactions. Mia believes that industry-wide collaboration and adherence to ethical standards will benefit both clients and agents.
Who is buying property in Spain right now and why?
Anthony, whose agency covers the Costa Del Sol, all the way up the coast to Alicante, says he regularly talks with international buyers from Belgium, France, Germany and Scandinavia. “We've got quite a lot of American clients coming in now, who want to escape the cost of living crisis and they even mention gun crime as a reason for buying a property out here. They come to Spain because it is generally a really safe place to live.”
The other reasons for buying a property that agents hear all the time is the lifestyle, weather and cheaper cost of living. Anthony says; “it's not as cheap as what people think, but it's certainly cheaper. And the way of life is different, which is another big driving factor. It's a lot more laidback and relaxed here in Spain.”
Future predictions for Costa del Sol property market
Despite occasional predictions of market slowdowns, Mia remains optimistic about the future of Costa del Sol's real estate market. The region's high-quality properties, affordable prices, and attractive lifestyle continue to draw buyers. With demand consistently outpacing supply, Mia anticipates growth and stability in the market.
Ibiza property news & trends
Claudia cites an increase in interest from buyers in various countries, including the UK, the Netherlands, Germany, France, Italy, and even Spain itself. Direct flight availability has played a pivotal role in influencing changing buyer demographics.
1,400 new VPO (state-subsidised) apartments to be built in Ibiza Town
The local government in Ibiza has recently given their approval to a new urbanistic plan and water treatment facility, which is set to pave the way for the construction of 1,400 new apartments in Ibiza Town. This is expected to alleviate the housing problem and stimulate growth in the region, benefiting both locals and second-home buyers. Search Ibiza Town properties.
Need help persuading your partner, children, or even yourself that moving to Spain is right for you? There are so many reasons to live in Spain, we asked our customers and our staff, who have all made the move, and here are their 101 reasons to move to Spain to get you started
Unfortunately since Brexit, Spain has made it more difficult to relocate.
Admin
15 Oct. 2023
Hi Paul, thanks for sharing your thoughts. We know that post-Brexit changes have created some challenges for relocation. The good news is that there are several visa options available, and we hope you can find one that suits your circumstances. Best of luck!
Janice
28 Sep. 2023
I had a home for twenty years in Alicante province and miss so many things.. We’d love to return but can’t afford to now.
Admin
15 Oct. 2023
Hi Janice, we completely understand your longing for Alicante – it's a wonderful part of Spain! We hope your journey leads you back to this beloved place one day. In the meantime, you can always stay connected through our articles and highlighted properties in the area, keeping your memories of Alicante alive!
Chris Marchant
30 Sep. 2023
I have 101 reasons to buy in Tenerife. I was looking to buy an apartment with the view of spending the UK winter there but since Brexit we can only stay a max of 3 months. What are the chances that this will ever change?
Admin
15 Oct. 2023
Hi Chris, we're so pleased to hear of your appreciation for buying property in Tenerife, it's a special place! We understand the challenges UK citizens now face post-Brexit. While we can't predict if or when restrictions may change, we recommend staying informed about updates and seeking advice from legal experts for any potential alterations. Tenerife remains a beautiful destination, and we hope you can make the most of your time there within the current regulations. Good luck with your property search!
Unfortunately since Brexit, Spain has made it more difficult to relocate.