Spain rising: ailing property market now ranks top ten worldwide

Spain’s real estate market has become one of the world’s most popular real estate markets in just half a year. It made it to sixth place in CBRE’s ranking of the world’s most successful property markets after investments into residential and commercial real estate reached $9.3 billion between January and June 2015.

This astounding recovery, up from 16^th place in 2013 and 11^th in 2014, is yet another sign confirming growth forecasts over the next two years. A notable change is the return of foreign buyers to the marketplace: overseas investors made up 31% of the total investments during H1 2015.

Houses for sale in Spain 4,506 listings on Tranio

2,550,000 €

Renovated villa with a garden and a view of the sea in a residence with a swimming pool, Blanes, Spain

Total area 408 m² Land area: 1,132 m²

650,000 €

Two-storey furnished villa with a swimming pool, Lloret de Mar, Spain

Total area 472 m² Land area: 880 m²

770,000 €

Three-storey villa with a swimming pool and a view of the sea, Lloret de Mar, Spain

Total area 340 m² Land area: 964 m²

1,250,000 €

Modern villa with a swimming pool and a panoramic view of the sea, Begur, Spain

Total area 388 m² Land area: 849 m²

749,000 €

Three-storey villa with a swimming pool, a garden and a picturesque view, Lloret de Mar, Spain

Total area 293 m² Land area: 1,000 m²

1,200,000 €

New villa with a swimming pool and a panoramic view, Lloret de Mar, Spain

Total area 223 m² Land area: 945 m²

1,650,000 €

Designer villa with fantastic sea views and a pool in Benidorm, Alicante, Spain

Total area 325 m² Land area: 1,000 m²

1,424,000 €

Modern designer three-level villa with a swimming pool and sea view, Valtocado, Mijas, Spain

Total area 373 m² Land area: 2,363 m²

A weakened euro against the British pound and the US dollar has attracted the interest of investors looking for new ways to maximise their capital. At the same time, turmoil in BRICS countries is also benefitting Spain. China’s slowing economy has seen its citizens’ investments into Spain increase almost five times over the last year according to Juwai.com. At the same time, a recession in Russia and easier access to mortgages has heightened interest in commercial property: Russian and CIS investors are currently overspending local budgets by 40% according to the forthcoming Tranio report on Russian and CIS property investment activity overseas 2015.

Tranio’s findings are corroborated by CBRE who reports investors are shifting their interest to commercial property. Furthermore, the office segment is losing popularity to accommodation property such as hotels, hostels and other types of income-generating residential property. This new trend is possibly a response to renewed Euro-tourism on the country’s costas as political instability and terrorism rises in recent tourist destinations like Egypt and Tunisia.

The local real estate market is benefitting from overall economic recovery, compounded by GDP growth, increased access to home loans and falling mortgage debt. According to Servihabitat, a Spanish real estate agency, price growth could reach 5.0% in 2016.

Our observations confirm the conclusions of the CBRE report: market recovery is still young and prices of property for sale in Spain are still relatively low, which is attracting more and more investors. Currently, commercial property is the most popular, namely retail premises and hotels as well as income-generating residential property. The most popular locations for commercial property are, traditionally, Madrid and Barcelona.

Anna Kurianovich Head of Commercial Real Estate Department

Ivan Chepizhko, Tranio

Read more:

• Spain’s real estate market recovery has experts divided
• Russians choose most expensive real estate abroad despite crisis
• Buyer profile: meet the British who buy property in Spain