Did you know we produce regular reports using the data that is available to us through the Kyero portal and various governmental organisations? This month we’ve dug into the stats for each province to build a picture of buyer activity online, looking at popular destinations and average asking prices as well as the types of properties that are the most sought after. We’ve also looked in depth at buyer demographics and reviewed how each region is performing for our agents.
The hope is that by providing you with this valuable information we can help to inform your sales strategy for the coming year.
So, let’s look at each province in turn.
Average asking prices in Alicante have increased 2.6% year on year with Villamartin the biggest riser (15.7%) and Alicante itself saw the biggest drop (-12.8%). In the last year demand has outstripped supply for apartments and townhouses at the lower end of the budget, particularly under €150k. In terms of interested buyers, the majority are in the 45+ age range with 61.3% European and 29.5% British with a clear majority of English speakers among potential buyers.
Asking prices in Almeria continued to fall and plateau long after some other provinces began to rise back to popularity. They’re now seeing something of a resurgence with average asking prices rising by 4.6% to €135,995 in the past year. Demand for properties under €100k outstrips supply as does demand for country houses and to a lesser extent apartments. Only 8.6% of interest in this area comes from outside Britain and Europe and – like Alicante – interest is strongest from the older age ranges.
With an average asking price of €570k, the province of Barcelona has seen a decrease in house prices of 6.6%. Having been generally rising since pre-2015, the last year has seen a steep fall. The city of Barcelona led the way with a decrease of 8% year on year. Supply outstrips demand for properties over €500k while prospective buyers seem to be looking for apartments that are a little less expensive. Buyers showing interest in this region are much more varied in age and are spread across the globe.
The province of Cadiz has struggled to regain popularity since the 2008 crash, with asking prices down 10.4% year on year at an average €240k. The only property type for which demand exceeds supply is villas. The area is of most interest to English-speaking Europeans and Brits in the 45+ age range.
We’re seeing asking prices in Fuerteventura continuing to rise strongly, increasing 8.5% year on year. Demand for apartments under €250k is higher than supply, making these a great addition for your portfolio. Buyer demographics show the area is popular for prospects between 35-64, with almost a quarter coming from Britain and only 3.4% from outside Europe entirely. Language preference of buyers is predominantly English with Italian as a close second.
House prices around the province of Girona have floundered in recent years, with a -2.1% annual trend. Both villas and apartments are popular in this area. Buyers are mostly around 45-64 with over 12% coming from outside Europe. Language preferences are for English and French.
Another province that’s seen a downward trend in recent years is Granada, with an annual trend of -3.3%. This is driven largely by a decrease of 25.1% in the historic town of Salobrena. Demand for lower-priced country houses is high in the region with supply unable to meet the needs of property seekers. There is a high proportion of British people buying in the area (36.5% of buyers are Brits).
While the overall trend for this province is slightly negative at -1.5%, there are strong pockets of activity. Prices in Arguineguin have risen by a little over 18% while in San Bartolome De Tirajana the price rise was over 25%. Once again, it’s demand for apartments at the lower end of the scale that cannot be met. The age range of buyers is relatively mixed compared to other regions while over three-quarters of buyers are from Europe (excluding Britain) with strong language preferences for German and Italian outside English.
Prices have rocketed in Ibiza since the crash, with a continuing positive trend of 2.7% in the last year to reach a median price of €1.2m. But we are seeing supply of €1m+ properties far outweigh demand, perhaps meaning those high price properties are becoming harder to shift. Buyer demographics are generally younger than for other provinces with Dutch Flemish the second highest language preference behind English.
Malaga’s star is rising – seeing a trend of 8.4% year on year, with average asking prices reaching beyond their pre-crash peak. The charge is led by popular resorts such as Marbella and Estepona. Demographic data shows a large percentage of Brit buyers, many of whom are over the age of 45.
The Mallorcan market is strong, showing 18.7% growth in asking prices year on year – the highest of all the provinces. Top destinations continue to be Palma de Mallorca, Santa Ponsa and Port De Pollenca, while Palmanova experienced a 31.6% increase. There is high demand for properties below €500k which the supply is unable to meet.
Asking prices in Murcia continue to rise slowly, seeing a 3.8% increase year on year. Demographics show this is a popular area with Brits and English speakers over the age of 55.
This province continues to see a downward trend in asking price, down nearly 2% year on year. There is high demand from lower priced properties in the area with nearly 90% of properties being bought by Brits and Europeans.
Prices in Tenerife have been climbing high of late, and while the past year saw an increase, at just 1.1%, this may indicate a slow down in interest. Over 70% of purchases are being made by Europeans, with a good spread of ages, the majority of whom are English speaking.
Valencia has seen a sustained decrease in asking price, down 4.2% year on year to an average of €160K. There is a large take up of properties in this area by buyers from Britain and the rest of the world, with only just over 50% being bought from within Europe.
How does the data we’re collecting compare to publicly available statistics?
We recently explored the international sales data for Q4 2018 shared by Fomento.gob.es. We reported that trends are suggesting that while there is still interest in the islands, buyers seem to be looking to invest their Euros more carefully, seeking coastal locations on the mainland instead thanks to the more palatable prices. Areas such as Malaga and Girona are becoming more and more popular while island destinations such as Tenerife, Las Palmas and the Balearics are seeing a decrease in sales.
While our data supports these findings, we believe there may be more positive news for agents specialising in island properties. Mallorca, in particular, has seen strong growth in enquiries for properties of these asking prices on our site.
So where are agents seeing the best returns on their investment?
For each province we’ve looked at our agents’ average return on investment (ROI) for each €1 they invest in Kyero advertising. And it makes for interesting reading. Across the board we’re seeing great returns, with the highest ROIs reported for Mallorca (26 times return), Tenerife (21 times) and Fuerteventura (20 times). The lowest (although still strong) returns are being seen in Alicante (9 times), Almeria (12 times) and Malaga (12 times).
This indicates that while general data shows the islands falling out of favour, the high prices that are still being paid in the current market are still creating plenty of opportunities for agents working within the area.
Check back regularly for more market insights from Kyero.