If you’re considering moving to Spain, it pays to keep an eye on the property market. Prices here are still well below their 2006/07 peak but have been rising steadily for some time. With this in mind, Spain Buddy talked to Marc Pritchard from leading Spanish home builder Taylor Wimpey España to get his insights into the market.
What sort of properties are buyers interested in right now?
Coastal and golf properties are always popular, both with holiday home buyers and those seeking a permanent residence. New builds are also proving particularly popular right now and are outstripping previously owned properties in terms of rising prices. Kyero’s recent House Price Index (Q2, 2019) shows that property prices in Spain rose by 5.3% year-on-year, but that the price of new builds over the same period rose by 7.2%. Resale properties saw price increases of 5%.
Why do you think that new builds are enjoying such popularity?
I think it’s a combination of factors. When the market crashed, it took a lot of developers with it, which meant that the supply of new build properties tumbled. So, on the one hand we’re facing years of pent up demand, which is pushing up new build prices. On the other hand, many buyers are simply more taken with the idea of a new, high quality home with superior fixtures and fittings. Traditional properties can be very charming, but they can also come with a host of issues. With a new build (from a trusted developer!), the standard is clear from the outset.
Those buying off plan can also sometimes have a say in the design of their home, which many people consider to be a huge bonus. Shaping your home to meet your precise requirements as part of the build process can be really satisfying.
Which area do you think offers particularly good value for money at the moment?
Anyone buying on a budget would do well to look at the Costa Blanca right now. We’ve been building in Spain for the last 60 years and so have seen some incredible house price fluctuations during that time. However, certain areas manage to offer just the right combination of low prices and welcoming communities (along with lovely beaches, lively towns and so much more). The Costa Blanca is one such area.
At our Kiruna Residencial development, for example, we’re selling three bedroom/two bathroom townhouses with private gardens and roof terraces for just €178,000€ plus VAT. There’s an on-site pool, golf and mountain views, a supermarket, a clubhouse and even a bilingual Spanish/English school. That’s incredible value compared to pretty much any location in the UK, as well as compared to many areas in Spain.
For those with a limitless budget, where would you recommend?
Obviously big city pads can command eye-watering price tags, but there are also some superb coastal properties available for those who don’t need to keep an eye on the purse strings. This is where island properties really come into their own. Ibiza has some superb properties available, as does Mallorca.
If I had to recommend a particular property, it would be Cala Vinyes Hills II in Calvia, Mallorca. The large, three-bedroom townhouses have simply stunning terraces with views out to the sea and the landscaped gardens and sizeable pool are just lovely. Understandably, the development has proven really popular, with just five homes left for sale there now, despite us launching it only six months ago.
What does the future hold for the Spanish property market?
Savills’ latest report on Spain highlights the country’s strong potential for a brighter future in terms of its real estate market. Construction activity is increasing and so is interest in relocating to Spain from a number of other countries. Property in Spain offers exceptional value when compared with homes in many other European nations, plus we have all the charms of the weather, beautiful beaches, exciting cities, peaceful countryside and so much more.
At the same time, Spain’s visitor economy continues to boom, with tourist numbers rising year on year. This means that Spain has a buoyant holiday home market, with foreign buyers seeing it as a place of retreat from their day-to-day lives.
Altogether, this spells out a very promising future for the Spanish property market, with strong, sustained demand both from domestic buyers and from those in other countries.