You might think that Spain has always been a popular destination for property investors, but has Brexit meant that the Brits are now choosing to stay at home?
Sun, sea and sangria is a popular combination for the British and for years we have flocked to the Spanish shores not only for holidays, but also for property.
Whether it is a holiday home, a complete relocation or simply an investment, many homes in Spain have been snapped up by the British.
However, since the decision to leave the European Union was made, many markets have been in a state of limbo as they wait to find out what the effects will be. It would be easy to think that Spain would have felt the force of that too, but it seems that the opposite is true...
Spanish property sales
The Spanish property market is actually seeing positive activity at the moment, despite Brexit. Prime property sales in the country have grown year-on-year by 27%, and the number of British buyers is growing.
The most popular areas have proved to be the traditional second home destinations of Marbella, Ibiza and the Costa Brava. Figures show that as many as 87% of sales in these areas were made by foreign investors, which is 24% more than the start of last year. The majority of those buyers originated from the UK, France and Scandinavia.
The properties that are being sold vary in size and value, with price tags over €1.5 million not sitting in estate agents’ windows for long.
The typical holiday destinations have obviously been the most popular areas for property, but sales in the capital were up by 20%, and Valencia sales grew by 10%. Barcelona saw a dip in sales as a result of the political turmoil in Catalonia but this is now showing signs of turning around with locals continuing to buy, positive price rise forecasts and rentals increasing by 17%.
The British buyer
Unsurprisingly, British buyers were responsible for 33% of the sales of Marbella property. They also made up 27% of sales in Stiges, 25% on the Costa Brava and 13% in Ibiza.
This is not only due to the British love of the Spanish lifestyle, but also because they see an opportunity to move money into European assets before the deal with the EU is done.
Uncertainty about what that deal may hold has meant that many feel moving now will be easier before extra restrictions are imposed.
The Spanish housing market grew by almost 8% in the first five months of 2018, continuing a five-year period of real estate recovery.
While many people believe it’s best to be cautious with investments before Brexit is completed, however, it seems that investors from Britain feel it best to make sure they hold assets in Europe now, rather than try to deal with the red tape and penalties that might be imposed in another year.
*For more information on Spanish property investment, please contact Hopwood House.