Spanish property prices rose to absurd levels during the Spanish property boom, which came to a dramatic halt in 2007. Since then Spain has suffered a severe economic crisis, which has further damaged property values, with the result that property prices in many areas are still similar to those existing in 2004. Indeed, house prices have dropped by as much as 35%-50% since the boom and now offer exceptional value for money.
But prices vary wildly between different areas of Spain and the market recovery that began in 2012/13 is certainly not everywhere. Over-supply issues were never such a big issue in Mallorca and Ibiza so prices have begun to rise again already. Spain’s National Institute of Statistics (INE) have reported that the Spanish market has grown every month since March 2014, with sales going up steadily, year on year. The Balearics and Almeria show the biggest year-on-year increases over 2016.
The enduringly popular Marbella arguably led the recovery on the Costas, whilst in 2014 the Costa Blanca market – especially the new-build sector – sprung back into action. The INE have also revealed that 40 per cent of foreign buyers in Spain were in the Alicante region (including the Costa Blanca). Post Brexit vote, British buyers have dipped a little but still lead the way, but are followed by a much more diverse spread of nationalities that include non-EU investors seeking “golden visas” as well as a good range of northern Europeans seeking to escape freezing winters.
Many of the distress sales we heard so much about have now been hoovered up so whilst buyers may still find some great deals amongst resale properties with vendors anxious to sell quickly, the scope for negotiation is narrowing in the hot spots of the Costa del Sol and Costa Blanca.