UK Investors And Changing Demographics
Recently published reports relating to last year, show that the impact of Brexit on UK property investment in Spain was negligible, with a decline of just 3% in sales overall between 2016 and 2017. A shift has been seen in preference, however, with a fall in the number of enquiries relating to properties priced at under 100,000€, whilst the mid-to-high range market has remained largely unchanged. This could suggest caution on the part of potential buyers who have a limited budget.
Interest from the UK market varied widely, with regards to average property price, depending on the area of Spain. Average prices ranged from under 50,000€ in the Tarragona region of mainland Spain, to 440,000€ on Ibiza, a testament to the island’s exclusivity. The most sought-after area on the Balearic island was around the capital of Ibiza town, followed by San Jose which incorporates the bay of San Antonio and stretches down towards Salinas and Playa D’en Bossa. This was followed by Santa Eulalia on the east coast, the western town of San Antonio, the beach resorts of Cala Vadella, Cala Tarida and Port Des Torrent, the golf course at Roca Llisa and the regions of San Carlos De Peralt and San Agustin Des Vedra.
The majority of British investors in Ibiza spent between 250,000€ and 500,000€, on their properties last year, with the second largest group buying properties priced between 500,000€ and 1 million euros. This was followed by buyers investing between 150,000-250,000€, whilst approximately the same number of investors spent more than 1 million euros. There were significantly fewer property purchases in Ibiza costing less than 100,000€. The picture was a similar one on the island of Mallorca, with the exception that there were more property purchases priced at under 100,000€ and the average value of properties attracting enquiries from UK investors was significantly lower at 255,000€.
The difference could be due to the larger island of Mallorca having a wider range of properties and providing tailored leisure facilities in more of its resorts. It would appear from the data, collated by a leading real estate agent, that UK buyers, in Spain, are mostly in the market for detached Villas or Apartments with 2-3 bedrooms, but there are exceptions in regions on the mainland such as Barcelona, where larger properties with up to 4 bedrooms are more popular with British investors. There are also regional discrepancies, of course, with more sales of country houses on the mainland.
In destinations such as Granada and Tarragona the requirement of a swimming pool was expressed in only around 20% of enquiries, whilst on the islands and in coastal areas, approximately 50% of UK buyers listed a pool as a necessity. British people have been investing in Spanish property for many years and figures published in 2017 show that almost 300,000 UK citizens have resided in Spain for more than a year. It would seem, therefore, that, whatever the future brings for Europe, Britons will continue to make up a significant segment of overseas investment in the Spanish property market.