After a hugely successful 2015 UK tour, the Overseas Property Show is set to draw to a close with a bumper show in Birmingham on 28 and 29 November. The free to attend show will be held at the Ramada Birmingham Sutton Coldfield Hotel, presenting local residents with the opportunity to explore their dream of home ownership overseas.
spanish property
Carrie’s Spanish property blog – 17th November 2015
Carrie Frais, Head of Marketing & PR, Lucas Fox.
This year Lucas Fox celebrated 10 years in business. It has been a decade during which the company has witnessed huge changes in the Spanish property market. When Lucas Fox was launched in 2005, the market in Spain was approaching its peak but as we all know, there ensued an almighty crash from midway through 2007 to around midway through 2014 where prices began to level out. During this 7- year period of tumbling prices, the focus was on high end overseas clients looking for exclusive properties in prime areas of Spain. But, during the last 18 months or so, with prices 40% below their peak, the economy back on track and banks willing to lend again, confidence has returned to the market. We’re registering significant numbers of investment clients as well as increasing numbers of national buyers.
Our latest market report for the first half of 2015 reflects this, showing that the number of high-end clients buying property for investment purposes in Barcelona doubled in the first half of 2015. In Madrid, 60% of Lucas Fox clients who bought homes with a value of more than €900,000 did so for investment purposes. The ratio of wealthy clients buying Barcelona investment property doubled from 30% in the first half of 2014 to 60% in the six months of 2015.
For the first time, our in-house reports also include data from buyers purchasing mid-range properties from €400,000-€900,000. In this price range, a third of all buyers purchased property for investment purposes with the same proportion buying as a primary residence, a significant rise on last year. This again reflects the growing numbers of local buyers coming back to the market, traditionally a sure sign that the recovery is underway.
In its European attractiveness survey, Comeback Time, accounting firm Ernest & Young put Barcelona and Madrid among the top ten cities for investment in 2015 alongside the likes of London, Paris and Berlin. The growing number of property purchases is expected to be one of the key drivers of economic growth in Spain, which has already surpassed forecasters’ predictions.
According to Spain’s Land Registry, El Colegio de Registradores, foreign buyers accounted for 13% of all purchases in Spain in the third quarter of 2015, the same figure as during the whole of 2014. Significantly, El Colegio de Registradores also states that a fifth of all foreign property sales were by British investors, who, as we know, are traditionally lovers of all things Spanish. This figure is up from 16% during 2014. It seems low interest on UK savings accounts, high housing costs and the strong pound have all been catalysts in luring Brits back to the Spanish property market.
In response to this growing demand for investment products, we decided to establish a new business ‘Lucas Fox New Developments’, turnkey homes that offer higher-than-average rental yields and a good return in the long term.
It is currently focused on Barcelona & Madrid as well as in and around Marbella. Lucas Fox New Developments will expand to incorporate other regions such as Ibiza, the Costa Brava and Valencia in 2016. Watch this space!
Got a question for Carrie? E-mail her here
Canarian property market sees ‘upward bounce’
The market in the Canaries is looking very positive right now, with almost every indicator showing an upward bounce since the middle of 2015.
Commenting on this data, Martin Dell, Director of Kyero, said, ‘We have already seen some talk of another bubble, I’d only add that market activity is still 58% below its peak in 2006 and we have a long way to go before hitting those levels. 2015 looks more like the very early stages of a recovery, mostly driven by international buyers.’
Visitors to Kyero.com searching for property in the Canary Islands have increased by 36% in Q1 – Q3 2015, compared to the same period in 2014.
Spanish Property Reports – Download Lucas Fox Q1/Q2 2015 Market Reports
The expert analysts at Lucas Fox have put together definitive property market reports for Q1/Q2 2015 with a wealth of in-depth information, statistics and insight.
From special reports on each of our main regions, to detailed market overviews and forecasts, this is a must-read for anyone looking to invest in Spanish property.
Download the Lucas Fox Q1/Q2 2015 Market Reports today for free expert advice, opinion and analysis
LM Experts Alerts for Landlords, Letting Agents & Property Developers 