Numbers inform good decision making, that’s what we always say. And that’s why we think it’s important to share our international buyers’ report with you every quarter. You can then use it to decide which direction you want to take your business in.
We’ve pulled together the most useful data from our International House Sales Report for Q2 2018.
Trends this quarter
The Q2 data shows a similar story to that of Q1 with a generally positive outlook. International sales have risen by 3.93% year on year up to almost 26,000 in the quarter. Purchases by foreign buyers are showing no signs of abating, representing over 16% of total house sales.
Where are international buyers buying?
From our international activity report we can see where the hotspots are in terms of international investment. As in Q1, Alicante remains the most popular province with foreign buyers accounting for 48% of house sales. That’s a 17% increase on the same time last year. And the islands yet again triumph in the tables, with Tenerife in second place followed by Las Palmas in third and the Balearics in fifth. Málaga, jewel of the Costa del Sol, bucks the trend by appearing in fourth position.
How can you act on this?
The islands have remained popular for some time now, so it will come as no surprise that properties in these locations are great to have on your books. People are still flooding to the area thanks to strong expat communities, the laidback lifestyle and year-round sunshine.
When advertising your properties, for example by listing them on an international portal like Kyero, it’s worth selling the virtues of island life. Include beautiful photographs of the coastal areas and surroundings to help long-distance viewers imagine themselves living there. Learn more about what to include in your photo gallery so you can help your island properties stand out from the crowd and attract more international buyers.
Which locations are rising and falling in popularity?
While they may still be at the top of the most popular list this quarter, it’s not all positive news for the islands. We are starting to see a slow-down in island property sales. The Balearics, for example, are 20% down on sales versus Q2 2017 and Tenerife and Las Palmas are seeing falling numbers too. Where are people choosing to buy instead?
We already mentioned that Alicante has cemented its place at the top of the house sales list for another quarter, but it’s no coincidence that Málaga too has risen from fifth to fourth place in terms of house sales year on year. Following this trend, Murcia’s house sales have risen 26% while Castellon’s figures are up a staggering 41%. This suggests an emerging preference for foreign purchases in coastal locations around mainland Spain. It’s a pattern we picked up in Q1 2018 and we will of course keep an eye on this throughout the coming year.
Top riser this quarter was inland Cáceres with its stunning medieval walled city. While only based on 42 purchases, the province boasts a 75% increase in sales since this time last year. Sales in popular cities Seville, Madrid and Valencia continue to experience growth too as international investors look for new homes or second homes in these cosmopolitan areas.
What does this mean for you?
We don’t expect that the expat love for the islands will disappear anytime soon. But we are seeing a rise in international buyers who want the best of both worlds – restaurants, entertainment, beautiful beaches and a laid-back lifestyle as well as easy access to the culturally significant mainland cities. And all without the living costs associated with island life.
Now is the time to start widening your network. Get to know the Costas, learn about popular expat locations on the coast as well as those situated a little further inland. International buyers are being more careful with their budgets as they are looking to get as much as they can for their money. So, when you write your listings, consider drawing attention to aspects of your properties that offer great value for money – that way you’ll be sure to get plenty of attention from potential buyers.
Keep an eye out for future updates. We’ll make sure we continue to bring you the big data that can help you to make the big decisions.