A recent market forecast has added further weight to the belief in a recovery of the Spanish property market. According to the forecast, which is the result of a collaboration between the Instituto de Practica Empresarial business school and Mar Real Estate, reveals a definite upward trend led by Mallorca thanks in part to a lot of activity from overseas buyers.
The report focused in particular on the Costa del Sol, a key center for Spain’s recovery thanks to its incredibly strong tourist appeal. The forecast predicts overall growth of 5-7% in the property market, with the Balearic Islands as a whole and Mallorca in particular highlighted as a key positive force in the Spanish real estate market at present.
According to the report, the Costa del Sol has already seen prices rise by 10% this year, and represents around 5% of all property sales in Spain. However, further growth is expected, and IPE predicts that by the end of the year the province of Malaga alone could represent up to 20% of all property market value in Spain.
Indeed, it is the Mediterranean coasts that seem to be the center of Spain’s recovery. Many experts are saying that this is down to desire for luxury properties close to one of Europe’s most desirable coastlines, with high net worth individuals and families seeking out some of the most expensive and luxurious holiday homes in these areas. In particular, it is foreigners looking for holiday homes, especially at the top end of the market, which is said to be stimulating the market in the Balearics islands, in which luxury property forms a key component of the market.
Mallorca, especially, is attracting wealthy overseas buyers for its most comfortable, well-located and spacious properties and this is stimulating the levels of market growth which led the report to single the island out as a top-performer of Spain’s current recovery. Buyers are drawn to the Mallorca and the other Balearic Islands for the quality of property and location on offer, relative affordability, and the islands’ comparative economic stability at present.
The UK has always been one of the biggest markets for Spain in terms of both tourism and foreign property ownership. As prices grow again yet remain affordable after the crash that followed the financial crisis, more and more Britons are picking up properties in Spain and represent one of the key groups driving this aspect of the recovery. An influx of buyers from China is also playing a very prominent role in driving recovery, along with a number of other nations.
Foreign buyers are currently proving especially important at the top end of Spain’s property market, but are present and indeed prominent at all levels. These buyers are not all looking for the same thing. Some are buying second or even primary homes, others are looking for investments – either residential buy-to-lets or an attempt to capitalize on recent record-breaking tourist numbers. Others are looking for a hybrid of more than one of the above, for example a holiday home that can be let to tourists when not being employed for personal use.