Taylor Wimpey Invests €95M in Costa del Sol to Meet Demand from Brits

14 June 2018 – Eje Prime

Taylor Wimpey España is going to invest €95 million in seven of the developments that it has up for sale on the Costa del Sol. The property developer is strengthening its commitment to the Malagan coast after verifying that Brits, one of its main client cohorts, have doubled their investment in housing in Spain.

“Demand is increasing in general”, explained the Director of Sales and Marketing at  Taylor Wimpey España, Marc Pritchard. The executive also added that “although the Brexit effect caused Brits to buy less in 2017, the fear is disappearing”.

Another important factor in the evolution of house purchases by Brits is the devaluation of the pound, which last year made investment in Spanish housing more expensive for buyers from the islands.

Nevertheless, Spain is still the preferred destination for Brits looking to buy a home, something that is reiterated by the British Embassy in the country. Across the whole of Spain, there are around 300,000 British citizens and “they are still the main overseas buyers of homes, accounting for 15% of the total”, says Pritchard.

In the ranking of foreign nationalities who buy homes in Spain, the Brits exceed the French, who account for 8.64% of the total; the Germans, with 7.77%; the Belgians, with 6.39%; and the Swedes, who continue as a historical investor, accounting for 6.38% of the total.

Original story: Eje Prime

Translation: Carmel Drake

Servihabitat: 9 out of 10 Non-Resident Buyers Prefer the Beach

18 December 2017 – Eje Prime

17% of the homes purchased in Spain today have a foreign accent. During the first half of 2017, 83,675 homes were acquired by foreign buyers, which represents an increase of 10% with respect to the same period last year. Nevertheless, that increase weakened slightly if we look at the previous quarter, according to the Servihabitat Trends report published by the national servicer.

The reason for this annual increase is found in the climate: 83.7% of non-resident buyers in Spain during the first six months of this year focused their attention on just seven provinces, all of which offer sun and sand. Málaga leads the ranking, exceeding even Alicante according to the latest figures. According to data from the Ministry of Development, 30% of all house purchases by foreigners were recorded in Málaga, compared to 23% in Alicante (…).

The data is clear. Almost nine out of every ten foreign buyers in the Spanish market values the quality of life offered by the Mediterranean climate. Another factor to take into account is the reason for the purchase. In this sense, the Government reports that 95.8% of new foreign house buyers in Spain are resident in the country, which accounts for 80,191 properties in total (…). ,

Besides Málaga and Alicante, the other most sought-after provinces by these investors are: Almería (9.6%), the Balearic Islands (9.2%), Las Palmas (5.2%), Tenerife (4.7%) and Murcia (3.5%). Beyond these coastal areas, the remaining 12.7% is spread over the rest of the country, with large cities such as Madrid and Barcelona accounting for a large share.

Influence in the regional market  

As well as the growing number of international investors, their influence in the regional markets where they are interested in buying homes is noteworthy. In regions such as Alicante and Tenerife, overseas investors account for almost half of all residential property purchases in the regions. Similarly, in the Balearic Islands, Málaga, Las Palmas and Girona, the figure exceeds 30%.

In Cataluña and the Community of Madrid, house purchases by foreigners account for 15.9% and 8.8% of the total number of operations, respectively.

At the other end of the spectrum, the regions where fewest foreign investors are active are Extremadura (2.2%), followed by Galicia (2.5%) and País Vasco (3.3%).

Brits lead the investor ranking

In terms of the country of origin of overseas investors in Spain, British buyers continue to constitute the largest community of house buyers in the country, although their market share decreased during the third quarter of this year, from 19% to 15.13%, according to data from the College of Registrars.

The collateral damage from Brexit may have led to that decrease, although the loss in the purchasing power of UK households will have also played its part, due to the depreciation of the pound against the euro, according to the servicer’s report.

After Brits in the ranking of foreign investors in Spain, come the French and Germans, although neither group manages to account for 10% of the total market. The Swedes, Belgians, Italians and Romanians, all with a percentage market share of around 5%, buy similar numbers of homes in the Spanish residential market, which is speaking more languages every day.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

College of Registrars: House Prices & Sales Rise in Q3 2017

11 December 2017 – Registradores.org

According to the Real Estate Statistics from the College of Registrars, which took the temperature of the housing market in the third quarter of 2017, house prices continued to strengthen during the period. The House Price Index of Repeated Sales (IPVVR) increased by 2% with respect to the previous quarter, to record a cumulative YoY increase of 6.8%. Since its most recent minimum levels, recorded in 2014, the index has increased by 18.6%, which means that the reduction since the maximum prices of 2007, has moderated, to 22.4%.

Between July and September, more than 119,000 house sales were registered in the Property Registries, up by 15.6% compared to the same period in 2016. That volume of operations, like the level recorded in Q2, has not been seen since 2011 and exceeds the volumes recorded in certain quarters of 2010, 2009 and even 2008.

Over the last twelve months, 445,725 operations have been registered, the highest YoY figure for the last six and a half years, and representing a YoY increase of 13%.

The latest report from the Registry Statistics also shows an incipient change in the trend, given that new homes are also showing their first signs of recovery. In fact, they recorded the highest QoQ increase, of 4%, whilst the sale of second-hand homes decreased by 1%. Even so, second-hand sales still account for more than 80% of all operations.

The distribution of operations by autonomous region retained its typical structure, with Andalucía, Cataluña, the Community of Madrid and the Community of Valencia recording the most sales, whilst, by province, the list was led once again by Madrid, Barcelona, Alicante, Málaga and Valencia.

Purchases by foreigners

After more than a year with overseas demand exceeding 13% (of the total), the figure decreased slightly to account for 12.8% of all house purchases. In absolute terms, that means more than 15,300 operations per quarter and 59,200 per year are being closed by foreigners. According to the report from the Registry Statistics, “in a scenario of growth in the absolute number of house sales, it is normal that in percentage terms, foreign demand would tend to stabilise in the best of cases, and decrease slightly under normal conditions, without that meaning that interest from foreign citizens in house purchases in Spain is decreasing”.

By nationality, Brits maintained their traditional position of leadership, although with a slightly lower percentage than in Q2, followed by the French, Germans, Swedes, Belgians, Italians and Romanians.

The Balearic Islands, Canary Islands and Community of Valencia were again the regions with the highest foreign presence, in such a way that foreign citizens account for between one third and one quarter of all purchases in those regions. They are characterised by their high tourist appeal, primarily in terms of their “sun and beach tourism” offerings. The same thing happened in the classification by province, which were led by Tenerife, Alicante, the Balearic Islands, Málaga and Girona.

Original story: Registradores.org

Translation: Carmel Drake