Nov. 19, 2014
To understand the real estate market in Spain, it is enough to read about the 5 global country trends at the end of 2014. We sorted the most important information and tightened it to 10 paragraphs, leaving a negligible beyond.
"The positive trend applies only to those cities and resorts that are popular with foreigners". On the photo: beach in Alicante
Property in Spain decreased dramatically after the crisis in comparison with other European countries. Prices fell almost two-fold. But it already lasts more than a year when realtors tell us that the bottom was overpassed or is about to be overpassed. But this "by-and-by" still didn’t happen. According to the fotocasa.es, in September, the sellers gave their meters for €1,647 each and in October – already for €1,637. In pre-crisis times it was €2,952.
All the evidence suggests that the bottom is not yet over. Realtors dig in toes: they say that joint Spanish statistics is pulled down by banking offers which fall in price and by homes in unpopular locations far away from the sea and capitals. In their regions situation differs: prices are rising and demand hurries on. It’s partially true: the positive trend applies only to those cities and resorts that are popular with foreigners. Let’s have a look on them.
"Property in Barcelona is in demand because of the coast: the Costa Brava begins from the north of the city, and Costa Dorada from its south"
Accommodation in Barcelona is the second most expensive in Spain, not after Madrid, but after the elite coastal city of San Sebastian near French border. Owners are ready to say goodbye to their real estate in Barcelona for average €3,264 per sq.m. But if you want to live in the heart of the city, for example, on the Gràcia avenue, then the "square" will cost you €8,450. By the way, in the last three years, 9 of 10 luxury homes and apartments in Barcelona worth over €1 million were purchased by foreigners. Locals either haven’t got such amounts or don’t’ want to spend them on like that.
Property in Barcelona is in demand not only because it is a large metropolis with a rich architectural and historical heritage, but also because of the coast: the Costa Brava begins from the north of the city, and Costa Dorada from its south. In general, summer holiday problem doesn’t exist in Barcelona, as there is no shortage of any urban benefits like shopping, entertainment or cultural components.
"Madrid is in line with such capitals like Berlin or Athens: they buy, but without any fanaticism"
Although Madrid still remains in the top of foreigner’s preferences, it’s not among the top’s first three. The capital of Spain is too far from the sea, the climate is continental, so winter is more severe there than on the coast. In terms of real estate popularity Madrid is in line with such capitals like Berlin or Athens: they buy, but without any fanaticism. Unlike London or Paris, being frontrunners in their countries, even without being located near the big water.
Today the capital city of Spain is considered to be profitable to invest in its luxury housing. Madrid real estate prices are rising (at the mainstream – are stagnating or falling). No wonder that according to the appraisers from Tecnitasa, the most expensive housing in Spain is located in the capital, property on Calle de Serrano is sold for €10,900 per sq.m. and this amount is gradually increasing. But in some capital suburbs it’s cheaper – €2,000 per sq.m. Contrast is evident.
"The British, the French and the Russians makes the more real estate purchases in Spain, followed by the Germans and the Belgians". On the photo: beach in Torrevieja
Path to this place will never grow over and planes will always fly there. Affordable seaside real estate in Spain may be purchased on the resorts of Costa Blanca. Apartment for €30,000-50,000 at the secondary market – is real.
Residential complexes in Denia, Benidorm, Alicante, Torrevieja and other cities, replacing each other while moving along the coast, are ideal for northerners looking for inexpensive vacations in warm conditions. And these northerners are the British, French and Russians. It is this trio who makes the more real estate purchases in Spain, followed by Germans and Belgians. Total share of foreigners accounts 13% of such transactions.
"Best beaches and warm weather also gravitate to the south, as well as Hollywood actors and stars of Russian show business"
Properties at the southern coast of Spain are the most expensive and remote from all the major cities and international airports. Expensive means prestigious, that's why it is on the Costa del Sol where elite housing of boaters and golfers is gathered. Best beaches and warm weather also gravitate to the south, as well as Hollywood actors and stars of Russian show business, choosing this region of Spain, do.
Marbella already has the Russian Cultural Centre and now construction of an Orthodox church is expected to follow. A provincial capital of Malaga was recently considered the second European city of medium size which is the most attractive for investors. Expert in the field of commercial real estate, CBRE emphasizes that profitable and at the same time affordable objects are difficult to find in the major cities from year to year; so entrepreneurs turn to other markets, such as Malaga, Bologna or Edinburgh.
Text: Alexander Fetyukov, ee24.com