Infrastructure revitalization and a generous government tax incentive is stoking prices and sales in Spain’s property market according to research provided by real estate portal Kyero.com and Spanish development firm Taylor Wimpey Espana. The national average house price in Spain rose to €266,100, and analysts from one large overseas mortgage broker have noted a 7% rise in property inquiries from international buyers. Areas that have seen significant price increases include Alicante, Murcia, Costa Calida and Costa Blanca. For more on this continue reading the following article from Property Wire.
Spanish property prices are rising with interest from second home owners likely to increase as the country experiences record tourist numbers, it is claimed.
Statistics from Kyero.com, Spain’s largest English language property portal, show that in the third quarter of the year the national average asking price for property in Spain increased to €266,100.
It suggests that there a shortage of quality properties in the most popular regions, according to Marc Pritchard, sales and marketing director of leading Spanish developer Taylor Wimpey España.
He pointed out that as prices rise and tourism booms with some Costa hotels enjoying 100% hotel occupancy over the summer months, potential buyers will be on the hunt for attractive opportunities.
Indeed, property professionals across the nation have already witnessed an increase in inquiries and inspection trips, with overseas mortgage specialist Conti recording a 7% rise in enquiries about Spanish property in August this year.
‘The price rises in certain parts of Spain is an encouraging sign for investors with locations such as the Costa Blanca, Costa Calida, Alicante and Murcia experiencing marked price increases,’ said Pritchard.
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‘Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors,’ he added.
Alicante has seen average property prices rise steadily since the end of last year with average asking prices of €220,000 seen in December 2010 gradually rising to €231,000 last month according to the figures from Kyero.
With prices in Alicante province below the national average it saw the biggest number of sales to foreign buyers between April and June 2011. Malaga hit the top spot for sales to foreigners with 1,110 sales taking place in the second quarter of this year.
Malaga has been nominated as a candidate for the 2016 European Capital of Culture, destined to boost future tourist numbers as well as property sales.
Kyero’s Spanish House Price Index also shows that the Balearic Island of Mallorca has the third highest average asking price in Spain at €416,300.
The Spanish government’s 4% reduction in IVA (the equivalent of VAT) on new stock properties until 31st December 2011 offering a potential saving of €8,000 on a €200,000 home is also encouraging buyers.
On top of the Taylor Wimpey España’s additional 4% contribution is certainly a big factor at play in attracting more buyers to the country. And, whilst property on Mallorca is more expensive than many of its counterparts, savings such us this can make a real difference, offering a quality property in a popular location at a discounted price, the company says.
Following the success of Cala Magrana I and II, Taylor Wimpey España is now launching phase III, comprising 20 apartments on Mallorca situated close to Cala Anguila beach, a selection of golf courses and the marina of Porto Cristo.
This article was republished with permission from Property Wire.