Spanish property sales highest since financial crisis

Spain’s Development Ministry has reported a surge in property sales since the beginning of October, giving a 16 per cent increase on last year’s figures.

Between September 2016 and the end of September this year, just over 510,000 homes were sold, with 121,000 finding buyers during 2017’s third quarter. The figure is only slightly lower than in the third quarter of 2008, just before the financial crisis hit. Foreigners living in Spain accounted for 20,257 homes purchased during 2017’s third quarter, a 17.6 per cent increase on last year’s figures for the same period. The most popular provinces were La Rioja with just under a 33 percent increase, Murcia with 25.6 per cent and Andalusia with 23.6 per cent, with Melilla and Ceuta not far behind.

Overall purchases by non-Spanish nationals including non-residents were up by 24,000, 17.4 per cent of the total increase. Alicante, Malaga, Barcelona, Madrid, Valencia and Santa Cruz in Tenerife were the most popular locations overall. The figures are the most encouraging since the financial crash which saw Spanish property values heading through the floor, with the scandal of expat home demolitions due to illegally-obtained building permits hitting hard on the shrinking market.

Spanish real estate prices have mostly remained in the doldrums until recently, when a surge in overseas investors and Brits claiming their place in the sun before Brexit kicks in caused a much-needed resurgence. This year’s third quarter figures underline the market’s long-delayed recovery, and the rush by Brit would-be expats to establish residence by buying a home is now well underway and unlikely to slow down soon. Recent reports on building permits and other legalities are encouraging, with a good number of local real estate agents reassuring potential purchasers there’s now no risk of getting caught up in similar scams.