The latest reports from the provinces give us an interesting picture of which regions are popular right now in terms of international sales. By understanding where foreign buyers are choosing to purchase, you’ll be able to tailor your strategy to make sure you attract those international investors.
Which provinces are seeing the highest property sales?
The Q2 2018 data shows us that Madrid achieved the highest total sales year on year, followed by Barcelona and with Valencia, Spain’s third largest city, sitting at number five on the list. This could simply be indicative of a large housing stock but suggests that investment in the areas surrounding the big cities is still a popular prospect.
The Balearics and Las Palmas are the only islands appearing in the top 10 provinces by total house sales, and sales in both have fallen year on year by 20% and 1% respectively. It’s worth noting that sales in Barcelona have fallen by 10% over the same period, while the smaller city areas of Murcia (+ 26% YOY), Seville (+ 18% YOY) and Alicante (+ 17% YOY) have seen good growth in their sales.
Could this suggest that buyers are looking to spend their money more wisely, eschewing the high property prices and living costs of the islands (Mallorcan prices have risen 16.2% in the last 12 months) and large cities in favour of areas where they can get more for their Euro?
Where are international investors buying?
Our Q2 2018 provincial sales figures give us an indication of which provinces have the highest international market share. By looking at which areas have risen or fallen since last year we can begin to see trends in the popularity of various regions.
Top in terms of foreign market share, with an increase in sales of 17% year on year, is Alicante, just south of Valencia on the Costa Blanca. Here, just under half (48%) of sales during the period were to international buyers. This is an area that remains ever-popular thanks to its expat communities and warm, sunny climate.
Predictably the islands of Tenerife, Las Palmas and the Balearics appear in the top 5 in terms of international popularity. What may be a surprise, however, is that all of them have experienced falling sales since mid-2017. Tenerife down 15%, the Balearics the biggest fall at 20%, and Las Palmas down 1%. This is a trend we’ve seen for some time, and while we don’t expect our international buyers to lose their love for the islands any time soon, there are certainly other opportunities to be found in mainland properties that offer access to the sea, amenities and leisure activities at a fraction of the cost.
The highest risers when it comes to international market share are both on the east coast of the mainland – Castellón (41%), to the north of Valencia and Murcia (26%), slightly inland towards the south of the country.
How popular is your province for buyers from overseas?
We crunched the data to reveal the top ten provinces for a variety of nationalities based on visitor data and enquiries through Kyero, and these were the results:
British top ten: Alicante, Malaga, Murcia, Valencia, Granada, Almeria, Mallorca, Tenerife, Gran Canaria, Tarragona
Dutch top ten: Alicante, Malaga, Valencia, Murcia, Granada, Almeria, Ibiza, Gran Canaria, Mallorca, Gerona
French top ten: Alicante, Malaga, Valencia, Gerona, Murcia, Almeria, Granada, Tarragona, Faro, Mallorca
German top ten: Mallorca, Alicante, Malaga, Gran Canaria, Tenerife, Valencia, Murcia, Almeria, Granada, Fuerteventura
Belgian top ten: Alicante, Malaga, Murcia, Tenerife, Almeria, Valencia, Granada, Gran Canaria, Tarragona, Gerona
Swedish top ten: Alicante, Malaga, Mallorca, Gran Canaria, Murcia, Granada, Valencia, Almeria, Tenerife, Barcelona
American top ten: Alicante, Malaga, Valencia, Murcia, Granada, Barcelona, Almeria, Mallorca, Gerona, Tenerife
There are many similarities between the preferences of the different nationalities. Ever-popular Alicante features highly in terms of its interest from internationals from across Europe and America as do mainland provinces of Malaga, Valencia, Almeria and Murcia which also appear on all lists. While Mallorca is generally popular, it is only the relatively affluent buyers from Germany and Sweden who see it placed near the top of the list. Perhaps due to its own lack of coastline, Germans generally appear to be drawn to islands, while the Swedes are the only nationality for whom Barcelona appears in the top ten.
This could be indicative of the trend we’ve picked up previously for a younger generation of northern Europeans being drawn to the cultural hotspots of the Spanish cities.
What should you do now?
The importance of international buyers in the Spanish housing market is clear to see and the move of foreign buyers away from expensive larger cities and high priced islands to suburbs and smaller urbanisations should not be overlooked. Consider the areas that we’ve highlighted as popular with international buyers and plan how you can adapt your marketing strategy to appeal to a new market.
To gain more insight into working with international buyers, check out our ‘Everything you need to know about…’ series, which kicked off with Everything you need to know about German buyers