After a decade of uncertainty, the Spanish prime property market finds itself on its firmest footing, according to Knight Frank’s latest Price Index.
As Spain’s property market has undergone a radical transformation over the past five years, the country’s prime market is now appealing to a wider mix of buyers, with investors taking advantage of the recent influx in tourist numbers.
The Index gives an insight of activities in Spain, providing a snapshot of five of the country’s key second home destinations, including an analysis of prime pricing, prime areas and buyer nationalities in Madrid, Barcelona, Marbella, Ibiza and Mallorca.
A rise in disposable income, higher employment, and a boost in consumer confidence is underpinning housing demand with mortgage lending up 20.2% in March 2017 compared to the same period last year.
Mark Harvey, head of European sales at Knight Frank, said: “We are pleased to report increased activity in Marbella, Mallorca and Ibiza all of which have dominated headlines this Summer in terms of both residential demand and record tourist numbers.”
“With enquiries for Spanish homes up 150% year-on-year, it is those established prime international destinations including the cities of Madrid and Barcelona that continue to benefit and outperform peripheral locations.”
Knight Frank also analysed the top neighbourhoods in Spain and estimated how many square metres €1 million can buy, with Es Cubells in Ibiza coming up top as the most expensive neighbourhood to live.
“Whilst the uncertainty surrounding Brexit continues to weigh on smaller budgets the drive for asset diversification, quality and lifestyle is helping to fuel a new real estate cycle based on more stable foundations than the previous credit driven boom,” Harvey continued.
“Indeed, as Europe’s recovery takes hold and the Euro continues to challenge the Dollar’s pre-eminence it is easy to see how Spanish real estate is attracting international interest again.”