Once again, we turn our attention to the data this week, looking at international activity in the Spanish housing market as reported by Fomento.gob.es. By investing time in understanding where foreign buyers are interested in making a purchase you can stay a step ahead of them, filling your portfolio with desirable properties.
Trends this quarter
There are still many positive signs in the international housing market. Q4 2018 saw 23,933 Spanish sales to international buyers, down only 1.25% on Q4 2017. International sales represent almost 16% of total house sales making the rate of foreign purchases relatively static over recent years. We’re certainly not seeing any signs for concern for agents working in international property sales.
Where are international buyers buying?
From our sales data we can see the favourite locations for foreign buyers in Q4 2018. Yet again Alicante tops the table with 49% of the market share. Showing the continued popularity of the islands, Tenerife and the Balearics take the second and third spot, while the popular coastal regions of Malaga in the far south and Girona to the north, complete the top five demonstrating a continued preference for living and holidaying by the sea.
What does this mean for you?
As the islands continue to remain popular, it makes sense to seek well-priced island properties for your books. When advertising these properties, it’s worth sharing the benefits of island life – the friendly expat communities, laidback lifestyle and of course the year-round sunshine.
Include beautiful photographs in your marketing to help long-distance viewers imagine themselves living there. And why not share our useful guides to these island locations to keep the prospective buyers coming?
Which locations are rising and falling in popularity?
When we look at locations that are rising and falling in popularity, it’s important that we pause to understand the data thoroughly. In some cases, a large percentage increase can be attributable to very few sales in reality. Sometimes the rise could simply be due to a new housing development or another such peak of activity in the area. There are, however, some trends worth mentioning.
Even though the data shows the islands are the most popular locations among international purchasers, they are in fact experiencing a decrease in sales across the board. Year on year, Tenerife and Las Palmas both saw a 21% decrease in foreign property sales while the Balearics saw a fall of 15%. Does this mean the islands are falling out of favour? Or are we simply seeing shrewd buyers looking to make the most sensible investment they can in the current market?
Let’s look at the locations that are seeing the biggest rise: Top risers are mid-country Soria, in the region of Castilla y León, with a 70% increase, and Albacete, an inland province in the south-east of the country (a 69% increase), both apparently disproving our observations that foreigners are choosing coastal locations. But when we look more closely at the numbers, Soria saw only 17 sales, while Albacete saw 54, a very small percentage of the overall sales made – meaning these findings are not statistically significant.
Perhaps more interesting is the trend we’ve seen in popular coastal provinces: Almeria is now in sixth place in the list, up by 8% from eighth place last quarter, while Murcia is up by 15% and Valencia by 5%.
What does this mean for you?
When we see a list of locations that are performing well it can be tempting to invest time looking for properties to market in these areas. But it is important to interrogate the numbers properly and look at the facts behind the trends.
In this case, it’s the rise in popularity of coastal regions that should be of interest to you. We can only assume that investors are seeing many of the same benefits as the islands, but without the hefty island price tags. By finding properties in these areas for your books you should find yourself ahead of the curve.
Keep an eye on Spanish Housing market data with Kyero.