“Lifestyle Investors” May Be Essential For The RE Recovery
9 July 2015 – El Mundo
The international estate agency Lucas Fox has published a report about the Spanish real estate sector, which illustrates the changes that the market has experienced since 2005, with prices peaking in 2007 and subsequently dropping until the middle of 2013. During 2014, the sector experienced a period of moderate stabilisation, before the current recovery kicked in with a stronger emphasis on high-quality properties and a long-term view of investment linked to lifestyle.
According to the agency, prices peaked in 2007, and remained stable in popular areas, such as the Costa Brava and Sitges, where they peaked in mid-2008. House prices then decreased by up to 40% in most areas, but less significant declines were observed in the “lifestyle markets” of Ibiza and the most sought-after areas of Marbella.
Meanwhile, prices experienced a steady decrease in Barcelona until Q3 2013, when the sector began to recover gradually to reach €3,263/m2 by the beginning of 2015.
On the other hand, Madrid and Valencia followed a similar pattern, but with lower values. The report prepared by the estate agency shows that both cities still have to maintain their quarterly growth rates in 2015. According to Alexander Vaughan, “over the last two years, thanks to the growing confidence in the recovery of the Spanish economy and in the Euro, in general, we have seen a revival in the market, with price adjustments at the global level”. Moreover, he adds that “Spain is as charming as ever and we are seeing a huge boom in the number of “lifestyle investors”.
Since mid-2013, the number of transactions has increased continuously in all of the regions served by the estate agency. This, the agency explains, indicates greater confidence in the market and more recognition from buyers. Nevertheless, there is still a long way to go before sales volumes return to their 2007 levels.
Original story: El Mundo
Translation: Carmel Drake