Spain Explore Travel Discover Adventure.

The return of foreign buyers!

With the free movement between countries and the generalization of vaccination, foreign buyers are back in Spain. They came first to the border areas, Costa Brava and Basque Country, then to the capital, Madrid, and to Barcelona, Valencia, Palma, Malaga and Seville. But also this summer in rural areas in Catalonia, the Valencian region, Andalusia and northern Spain. Some agencies have never had so many foreign clients.

Madrid
Barcelona
Valence
Palma
Seville

And for most of these buyers, it was a good surprise. Because the prices have remained stable, and they are still negotiable. On the coast, they are looking for a villa with sea view or an apartment on the upper floors with terrace and on the front line. In large cities, it will be more “aticos” (top floor) with terrace.

This return of foreign buyers, combined with strong domestic demand, is expected to drive up prices by the end of the year. So if you have a purchase plan in Spain, don’t delay!

Record of residential real estate transactions for 13 years!

The 48,201 real estate transactions recorded in June are the highest monthly volume this year, according to INE statistics. January to June 2021 is the best semester in terms of the number of real estate transactions since 2008, with more than 267,700 transactions between January and June. The residential real estate market is boosted by the economic recovery and the catching up of unrealized transactions in 2020.

Reduced roommate prices

For a year, the prices of roommates have fallen in all major Spanish cities according to Idealista. Significant drop as in Madrid (-8% / € 370), Malaga (-7% / € 292), Barcelona (-5% / € 395) and Seville (-4% / € 283). More moderate decrease in Valencia (-2% / € 289) or Bilbao (1% / € 364). The prices are the most expensive in San Sebastian with 406 €. The average age of roommates is 33. 39% of shared apartments are in Madrid and 18% in Barcelona.

The luxury real estate supply concentrated in 4 provinces

Three-quarters of sales of luxury apartments and villas (unit value over 1 million euros) are concentrated in four provinces. Malaga and the Balearics (23%), Madrid (15%) and Barcelona (12%). Follow (10%) and Girona (5%). As for ultra-luxury

Alicante (unit value over 3 million euros), it is concentrated in Malaga (37%) and the Balearics (32%).

The island of Menorca is increasingly attracting foreign buyers.

The Balearic Islands are not limited to and to Mallorca. Their neighboring sister from Menorca is enjoying growing success with foreign buyers, particularly from France. The 700 km2 island (10 times smaller than Corsica) has 200 km of coastline dotted with 70 beaches. The vast majority of its territory is protected and it offers great natural diversity. Populated by only 100,000 inhabitants, it has managed to preserve a strong culture. And the prices are still very attractive, 2500 euros on average.

Ibiza

Madrid and Barcelona, 20% more expensive than other cities.

Madrid and Barcelona are 20% more expensive than other Spanish cities but with private sector salaries 45% higher. After adjusting wages to prices, the citizens of Madrid and Barcelona enjoy 21% more purchasing power than other cities. The price difference between urban areas has increased over time. Thus, in 2004, the difference between the two most expensive cities and the cheapest was 22%, against 31% in 2020. It is housing that is expensive in the two large Spanish cities. For example, the cost of renting accommodation in the urban areas of Madrid and Barcelona was, in 2020, 82% higher than the average for the rest of the urban areas. For other consumer goods and services – which includes food, clothing or communications – the price differences are much smaller.

Real estate investments back to pre-pandemic level

Real estate investments are expected to reach 12.5 billion euros in 2021, or 25% more than in 2020, and will be at the pre-pandemic level (12.5 billion euros in 2019). Madrid, Barcelona, Valencia, Malaga, Bilbao, Seville and Zaragoza are the most prominent cities for most investors. And the star real estate assets are logistics and residential. The neglected sectors are office real estate, hotels and commercial spaces.

According to Barnes, a good view can increase the value of an apartment in Barcelona by up to 30%.

Two-thirds of real estate agencies recorded an increase in their turnover in the first half of 2021 compared to the first half of 2019.

Benidorm’s InTempo skyscraper, Europe’s tallest residential building, has already sold half of its 256 homes.

Spain is the preferred destination for British tourists, especially for the price / quality ratio. The most expensive streets in Spain are calle Sant Carles, in the municipality of Calvià in Mallorca, and Urbanización Coto de La Zagaleta in Benahavís in the province of Malaga.