After seven years of stagnation the property market in Spain is experiencing an uptick in sales and prices have reached bottom.
With the Spanish economy improving, unemployment falling, tax revenue growing and a more stable banking system, lending figures are on the rise.
The typical mortgage lending rate dropped from 4.21% to 3.29% over the course of 2014 and this has fed through to buyer confidence. Andalucía and the Canary Islands have seen some of the strongest surges in mortgage lending, up 25% and 26% respectively month on month, compared to the national average of 14.2%.
The return of large US investment funds has been notable but not just in Spain’s main cities. Marbella, a popular area with overseas buyers is building on a property market recovery that began in 2013 despite Spanish buyers failing to return in any significant number in 2014 and the Ukraine crisis impacting on the number of Russian buyers.
There was strong demand from an increasingly diversified client base of Scandinavian, Benelux, French, Arabian and Moroccan buyers which added to the record tourist numbers lending a certain buoyancy to the local economy.
Marbella, however, outperformed its neighbours, by experiencing an 89% jump in property sales between 2008 and 2014 according to Spain’s Ministry of Public Works. Benahavis and Estepona, by comparison, recorded rises of 62.3% and 22.8% respectively over the same period.
The amount of time properties spend on the market is dropping if realistically priced, while in some prime beachfront locations there is even a shortage of available homes, complete with waiting lists for specific property types.