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The Spanish Property Market

Since Spain turned a corner in 2014, raising its head from the depths of recession to outpace most Eurozone economies last year, select pockets of its mainland and islands have taken on a momentum of their own.

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Ibiza Mallorca Marbella

Rising sale volumes in Marbella suggest confidence is returning to the market. Price growth is slowly shifting into positive territory with newly-built modern villas in good locations, beachfront properties along the Golden Mile and gated communities outperforming the wider market. Interest from Middle Eastern property buyers has increased significantly.

Mallorca’s prime market has entered a new cycle of growth. The island’s prime markets of Andratx, Son Vida and Deià remain firm favourites with British, German and Scandinavian buyers. Not only has foreign demand strengthened but sentiment among local buyers has also improved.

The top-tier of Ibiza’s property market has become uncoupled from the wider market and is witnessing strong price gains as demand outpaces supply. As the southern coast becomes more developed so attention is turning to inland markets and the northern coastline.

In Barcelona, confidence is returning. The number of residential sales in Barcelona increased 86% between 2012 and 2015. Local buyers, buoyed by positive economic indicators, are active once more but foreign buyers continue to dominate the luxury end of the market. For more detailed information about the Spanish property market, please refer to Marbella Insight.