Spanish Property Market Moves With The Times

The latest figures from the National Institute of Statistics (INE) show an increase in Spanish property transactions of 2% during the first five months of 2019 when compared with the same period in 2018. The sharpest rise in the market was seen in purchases of new properties where a growth of 11% represents some 19% of total sales. Foreign investment, however, saw a slight decline during the first quarter of 2019, according to information from the Spanish Property Registry, falling to 12% of new house sales throughout Spain from 13% during the same period in 2018. Property prices across Spain recorded a 6% annual increase in June 2019. The Spanish economy in general also experienced a healthy growth of 2.5% last year, and although the International Monetary Fund has predicted this to level out to 2.2% during 2019, there is still far more optimism than in predictions for its European neighbours. The French and UK economies are only expected to grow by 1.5% and Germany 1.3% over the year according to the IMF. Unemployment in Spain also fell by almost 11.7% during the first quarter of 2019 which may be responsible for a rise in demand for property from Spanish nationals and an increase of 16% in sales of mid-market properties with a value of between 450,000€ and 900,000€. The tourism industry has proved extremely beneficial to the overall economy of Spain as visitors have reached unprecedented numbers with more than 29 million recorded in the first five months of 2019. Foreign tourists have also spent more than ever before, according to the National Institute of Statistics (INE), contributing more than 30 billion euros to the country’s finances. Here in Ibiza the property market, for families from overseas, is mainly a blend of holiday homes and primary residences as they wish to make the island their home. The new demographic of the average investor is a professional or business owner, often with young children, wishing to take advantage of the reputable, international schools and range of public amenities that Ibiza now offers. The type of properties most in demand are villas with three to four bedrooms with private pools. The south-west region of San José has always been popular with such settlers as it is close to Ibiza Town, fabulous beaches and San Antonio but, due to the size of the island and ease of access, many are looking to Cala Vadella, Cala Tarida, Es Cubells and north-eastern areas such as San Carlos which also offers international schools and everyday amenities in the nearby town of Santa Eulalia. New tourism license regulations in the Balearics have served to discourage some from investing in second homes which are often purchased with a view to generating income from holiday lets. This may be more difficult than in the past but is still possible provided the correct procedure is followed and expert advice sought. Growth in demand for accommodation on the island could make buying a property “to let” a highly lucrative prospect.

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