Once in a while we like to bring our readers an overview of what’s happening on the Spanish property market. All property markets fluctuate, and it’s sometimes hard to keep up with the changes. When people are looking at investing in one of the many properties for sale in Spain’s lovely Costa del Sol, they want to feel that this is a wise decision.
It is very easy to be swayed by the idea of a dream lifestyle and all the joys it promises, but most people want to understand exactly what they’re getting themselves into when signing on the dotted line for a huge asset in a new country. It’s quite understandable.
If you’re one of the aspiring expats thinking of checking out the houses for sale on the Costa del Sol, rest assured it’s a smart move.
May sales figures show a considerable increase
Spanish notaries witnessed just over 47,000 home sales in May this year, which is 17.5% more than in May 2016. The Notaries Association has reported that sales of homes in Spain have climbed more or less every single month since January 2014.Going by the recently released May figures, no downturn is expected and home seekers on the Costa del Sol can go about their search safe in the knowledge that their investment will be worthwhile.
The sales figures published by the Government also confirm that Spanish residential property sales are still booming. There has been a 22.9% increase in sales, with a year-on-year rise of 9.2%. With just over 29,000 sales, numbers are at their highest since the start of 2012.
Average house prices are also on the up. During May the average price of homes being sold went up by 0.3%. The price of apartments went up by 1.6%. The property market was at its peak during the boom of ten years ago, and as prices are still 30% lower than they were at that time, there is plenty of room for them to continue creeping up. This would therefore be a great time to buy, making a significant return on your investment in later years if you decided to sell.
Spanish mortgage lending also rose in May
Of course, not everybody can afford to buy their home outright, and many will need to find an agreeable mortgage lender. As it happens, there is also good news for homebuyers who are depending on getting a loan to secure their Costa del Sol dream home.
Mortgage lending in Spain has actually reached a five-year high, so the banks are clearly feeling more comfortable. With the increase in Spanish property sales came an increase in mortgage lending, which was up by 17% this May, compared to May of last year. Mortgage loans for new residences in Spain went up by 11.7%, and around 50% of all new homes bought were backed by a mortgage loan.
The average loan capital rose by 7.6% too. So far this year, almost 130,000 mortgages have been granted, which is a 6.3% rise on the same time period last year. The total for the last 12 months equates to an 8.3% increase on the previous year, with just below 290,000.
Your dream is within your reach
Whatever your situation, these figures demonstrate that the dream is within reach. The costs of homes here in Spain is still a lot less than those in the UK, for example. Many Brits can’t get on the property ladder in their home country, and as house prices continue to rocket while wages remain roughly the same, it seems that owning a decent property there will remain a pipedream for them.
It’s little wonder that so many of them are turning to Spain’s temperate climate and beautiful coastal properties. If people can get more ‘bang for their buck’ with all the trimmings that a relaxed Spanish lifestyle brings, it’s a no-brainer.
Dining out is generally cheaper here in Spain than it is in the UK and France, and you will find that many other things are cheaper here, which may be a useful factor in your decision to move. On average, prices are 18.76% lower than in the UK.
One of the best things about this part of the Costa del Sol is that there’s so much choice. If you want peace and quiet, a property in a remote location, you can easily find it. If you love the bustle and beauty of Marbella city, or the buzz of Puerto Banus, you can situate yourself amidst that. If the traditional lifestyle of the quaint pueblos (white villages) appeals to you, it’s within your reach. For others, an apartment with a sea view is the only requirement. Why not take a look at Paradise Marbella’s properties and get the ball rolling?