In 2018, the demand for Spanish property in the Costa del Sol, Costa Blanca and Murcia remains high and continues to outstrip supply. If you’ve been considering buying a dream holiday home in Spain, this year has shaped up to be very positive and we’re busy advising clients that now is a good time to take action.
2018 continues to be a great year for the Spanish property market. Don’t just take our word for it, evidence supporting our view is regularly published from various well respected property think tanks including Anticipa, Ministerio De Fomento (Ministry of Development), Trading Economics and the respected real estate focused business school ‘Instituto de Practica Empresarial’.
In the first quarter of 2018, we reported that we had seen an increase in property sales figures compared to 2017. In fact, Spanish property sales in this period were up 18% compared to the same period in the previous year. This is the largest increase for over a decade, so this year really is the right time to buy.
With high quality property developments in desirable coastal areas like Murcia, demand has continued to be strong. Driven by buyers looking for superior quality, good value properties, new build property sales have increased by double digits nearly every month for the past year.
In this article, we highlight some key reasons why 2018 is an ideal time to take action and start the process of buying your dream holiday home in Spain.
Higher quality property developments
In 2018, buyers are spoilt for choice with a wide range of new property developments of a substantially higher quality than in the past. In recent years, leading property developers in Spain have further improved their products to include top quality finishes, fixtures & fittings and 10 year build quality guarantees.
In contrast with a typical development of years gone by, Spanish property developers are focusing on quality over quantity. More time is being invested in developments, construction standards have increased and there is a definite focus on producing high class properties. In 2018, we have seen a wider range of developments available within a broader spectrum of prices, which means buyers can now enjoy luxury features and a choice of locations within their budget.
New build developments in 2018 commonly offer these benefits:
- Large open-plan living spaces.
- Opportunity to customise the property to match the preference of the buyer, such as allowing for disabled access, private swimming pools and basement areas.
- Latest energy saving technologies, which save money in both heating and cooling. Energy efficiency also ensures properties fulfill today’s stricter health and safety regulations, which mean they are ready to rent out.
- 10 year architect warranty.
- Released on an off plan or key ready basis, most offer options to buy fully furnished too.
For buyers, the increasing experience, reliability and professionalism of property developers means that off-plan developments offer buyers high standards and low risk. Construction methods are now in-line with European regulations. Off plan new builds also typically deliver more property for your Euro compared to completed projects.
Sold on the many benefits of new build developments in Spain? See a range of high quality new build properties for sale in Murcia, Costa Blanca.
Attractive borrowing rates
Market borrowing rates in Spain continue to be attractive for prospective buyers this year. Mortgage statistics released in May 2018 by the respected analysts, The Instituto Nacional de Estadisticas, INE, show that the average mortgage rate in Spain decreased by 4.3% compared to a year ago in May 2017.
The growth in demand for property financing is also strong. Spain saw a 7.3% increase in the number of mortgages issued compared to the same period last year.
Summer 2018 borrowing figures show that if you are considering buying your dream property with a record low Spanish mortgage, the favourable economic climate and attractive borrowing rates make Spanish property a valuable asset and an attractive long term investment.
To learn about the favourable mortgage rates available to UK buyers, see Spanish mortgage examples. For further expert advice on finance options for your property purchase, get in touch with our friendly team on 01202 971614.
Positive economic outlook
Spain’s sunny outlook is also reflected in the economy. Earlier this year, we reported that The International Monetary Fund has raised Spain’s 2018 economic growth forecast to 2.08%, the strongest of any country in the Eurozone. Economic growth continues to be significantly higher than the Eurozone overall thanks to thriving tourism and growing exports.
Unemployment has fallen consistently from the 27% high in 2013. With the national budget deficit reducing, more household disposable income and growing GDP, Spain is a highly attractive market for investing in property.
Spain’s economy is showing all of the positive signs of being a stable environment in which to buy a holiday home in the sun.
Increasing property prices
With a positive economic outlook and strong demand for properties, Spanish property prices are on the up. Spanish banks are projecting record property sales this year. With confidence returned in the market, and demand steadily growing as a medium term trend, it’s inevitable that prices will continue to rise.
Strong demand – following the trend of recent years, the demand for properties in Spain continues to grow in 2018. Anticipa, a leading Spanish real estate analyst, projects a 21% increase in home sales between 2016 and 2018.
Rising prices – Jose Antonio Perez, the CEO of the prestigious ‘Instituto de Practica Empresarial’, a Spanish business school specialising in the Real Estate sector, stated earlier this year that he predicts Spanish property prices will rise by at least 6.7% in 2018.
How Spanish Legal Homes Can Help You Buy Your Dream Spanish Property
Whether you are purchasing a new holiday home, looking for a great property investment, or a permanent residence in the sun, we are advising clients that you are likely to benefit financially if you act this year. With rising property prices, increasing rental incomes and low cost borrowing rates, 2018 really is shaping up to be a good time to buy property in Spain.
We are now taking Autumn and Winter bookings for our ever popular 3-4 day relaxed and informative Viewing Trips. The £99 per person trips are conducted on a one-to-one basis with one of our property experts; they will show you 8-10 different properties a day within your chosen locations and preferred budget range.
Keen to learn more? Get in touch with our friendly team on 01202 971614 or email sales@epspain.com.