Taylor Scott International News
It is clear that the Spanish property market is recovering in terms of sales and even prices but the rental market is not doing as well. The average rent fell by 0.3% in February compared to the same month of 2015, according to the latest data from the National Statistics Institute. Rents have now fallen in Spain for 35 months in a row but the outlook is not too negative as rents are down less than the consumer price index which fell by 0.8% and month on month have been fairly stable lately. A breakdown of the figures show that all regions saw rents fall apart from Galicia, the Balearics, Navarre and Catalonia with slight rises of 0.3%, 0.3%, 0.1% and 0.1% respectively while rents in Murcia were unchanged. The biggest decline was in La Rioja with a fall of 2%, followed by Castilla y León and Castilla La Mancha both down 0.9%, Madrid and Extremadura both down 0.8%, the Basque Country down 0.6%, Asturias and Cantabria both down 0.5% and Valencia down 0.4%. Elsewhere in the market is regarded as good news that overseas buyers have returned to Spain. But it may be that some are more interested in older properties rather than new homes. According to data from the Spanish Ministry of Public Works, foreigners bought 69,196 homes in Spain during 2015, up 13% over the previous year, and accounted for almost one in every five of the homes sold in the country last year. Non-resident foreigners purchased a total of 4,846 homes in Spain last year, up 10.1% over a year earlier, while resident foreign buyers bought 64,350 homes last year, an increase of 13.3% compared to the previous year. Valencia was the top region for foreign buyers in 2015 with a total of 20,219 sold to foreign buyers, followed by Andalucía with 14,384 homes being registered to foreign buyers and then Catalonia, with 10,264 homes sold to foreign buyers. Research from boutique overseas real estate agency Ideal Homes International has found that resales now account for 76% of sales to British buyers but there is still interest in new properties from Scandinavian and Belgian buyers. According to director Chris White many British buyers are looking for dual purpose properties. In the immediate term they want a holiday home that also has the potential to earn income as a holiday let. In the longer term, they want somewhere that can act as investment for their golden years, either as somewhere to escape to for a life in the sunshine or as somewhere that will grow their capital so that they can sell it to fund their retirement. ‘There was a time when British buyers flocked to new build developments in Spain. The financial turbulence of the past decade has had an interesting impact on British property purchases in Spain. Confidence is back and the market is growing at a healthy pace, but the type of property that buyers are seeking has definitely… Taylor Scott International
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