2015 set to see strong growth in demand for prime properties in Spain

Taylor Scott International News

The international financial markets are expected to be a key driver in the uptake of Spanish prime residential property during 2015, according to a new analysis. The latest market reports from Lucas Fox International Properties, suggest there has been an increase in demand from UK, US and Swiss buyers thanks to the rise of the dollar, pound and Swiss franc against the Euro. Conversely, the number of Russian investors is expected to dwindle as the rouble goes further into free fall in 2015. ‘With unemployment falling, the economy growing faster than predicted and property reaching the bottom, 2015 is set to be a pivotal year for Spain's property market. Prices are on average 40% below what they were since the start of the crisis in 2007 and we predict a slow and steady recovery. This is an opportune time to invest,’ said Lucas Fox co-founder Alexander Vaughan. The report says that prices in Barcelona have stabilised in the past 12 months and new international interest is impacting on demand for prime residential property. 2015 is expected to be the most significant year of recovery for the prime market in Barcelona since 2007. Lucas Fox sales data shows that Middle Eastern buyers accounted for 12.5% of all purchases during 2014, followed by the Spanish and French both at 11%, the Germans at 8% and the British at 7%. The bulk of prime market property purchases in Barcelona during 2014 was for investment use with two out of five buying for that reason, whereas in2013, the main reason for buying was for use as a primary or secondary residence. The number of transactions in 2014 increased over 2013, with more properties above €1 million selling than in the previous year. ‘We see 2015 as the recovery year for the Spanish prime residential property market, driven mainly by increasing numbers of overseas buyers. We expect that those who were deterred by falling prices during the past seven years or so, will enter the market, enticed by some real opportunities,’ explained Vaughan. ‘Prices have fallen by up to 40% in some areas of the city but, in the last 12 months, these prices have stabilised. Some recent figures suggest that, in some of the most desirable areas of the city such as Eixample and the beachfront, prices for the best properties are starting to creep up again. The key change in the Barcelona Residential market during 2015 will be the return of quality new build residential developments which have not been seen on the market for several years and where demand currently outstrips supply,’ he added. In the Costa Brava, foreign investment in residential property has grown significantly. In 2010, foreign investment in new housing properties accounted for 9% of the market. In 2014, foreign investment represented 26% of the market. Price movement in the prime residential property market for the Costa Brava region is not expected in 2015. However, sales volume is predicted to increase particularly… Continue reading →

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