June 2017 data reflects improving Spanish economy
The median asking price in Spain has now reached €230,000, according to Kyero’s June 2017 data. The rise represents year on year growth of 3.3%. While that rate has slowed since last month, Kyero remains confident in its expectation that prices will continue to grow steadily over the months ahead.
Despite British buyers showing their post-Brexit vote nerves, Spain’s property market outlook remains healthy. Buyers from elsewhere in Europe are picking up the slack from the UK, providing agents with plenty of opportunity to refocus their target markets accordingly. In the background, Spain’s economy continues to improve steadily, with no obvious headwinds looking likely to change things.
As ever, Spain continues to show wide regional variations when it comes to shifts in asking prices. Kyero’s June data reflects budget adjustments, as buyers’ attention moves away from high end homes towards more affordable alternatives. Malaga is an excellent example of this, with glitzy Marbella experiencing asking price falls of 4.2%, while Mijas Costa prices shot up by 21.6%. The picture isn’t entirely uniform in Malaga though, with pricey Benahavis enjoying an asking price increase of 23.6%. The fluctuations reflect the shifting patterns of changing buyer trends and priorities as the Spanish market adjusts to a new balance of international interest.
Other key regional winners in terms of price rises in June included Platja D’aro in Gerona, with an annual increase of 33.5%, Tenerife’s Adeje (30.2%), Sant Josep de sa Talaia on the island of Ibiza (29.2%) and Port De Pollenca, Mallorca (22.9%).
When examined at a provincial level, the data reveals the continuing popularity of Ibiza, which has enjoyed the greatest annual price increase of any province, at a stellar rate of 32.8%. The island is well ahead of the next nearest contender – Tenerife – which experienced asking price growth of 12.0% over the same period. Gran Canaria took third place, with price growth of 11.3%. The figures reflect the ongoing popularity of the Spanish islands with both overseas and domestic buyers.
Despite the general growth across the province over the past year (of 7.2%), Mallorca has also experienced some notable declines in asking price. The most significant has been in Andratx, where prices have fallen more than in any other region over the past 12 months, dropping by 16.0% in total.
Prices in Salobrena, Granada showed the next largest fall, dropping by 11.7% over the year. Notable price falls were also seen in Frigiliana (8.3%), Sant Antoni De Calonge (7.6%) and Sotogrande (7.2%).
A key factor in the overall slowdown in asking price growth has been the unfolding tale in Alicante. As home to the Costa Blanca, Alicante has long been considered the epicentre for international investors. While prices there have continued to grow over the past year, the rate of growth fell to just 1.6% in June. Given the considerable amount of international interest in Alicante property, this has had a significant impact on the overall rate of price growth during the month.
Despite the slowing growth rate, confidence in the Spanish property market remains strong. As agents reshape their offering to capture international interest from elsewhere, the impact of nervous British buyers is being mitigated by other countries. The outlook remains promising.