2018 Spanish Property Outlook

Property News

2017 was a good year for Spain’s residential property market. The market enjoyed steady growth with the Ministry of Development (Fomento) reporting a surge in housing sales since last October, giving a 16% rise on 2016 figures. Over 510.000 homes were sold from September 2016 to September 2017.

The year was also a record-breaking year for Taylor Wimpey España. During the summer season, the leading Spanish housebuilder witnessed the largest growth of the last six years with a 13% increase in enquiries for Spanish holiday homes.

The company, which has been building homes in Spain for 60 years (1958 – 2018), also reported growth in international buyers, delivering another year of growth in operating profit* in 2017.

“We are very proud of the results that we have generated in 2017. The Spanish housing market has remained strong throughout the year as we have witnessed international demand rising again, having sold homes across Spain to more than 30 different nationalities”.

Marc Pritchard, Sales and Marketing Director, Taylor Wimpey España

Looking ahead with optimism to 2018, Taylor Wimpey España has highlighted three key trends in the Spanish second homes market:

  1. British buyers splash out more with a view to Brexit in 2019

Whilst the UK’s decision to leave the EU did undeniably affect the Spanish second homes market, it seems this was just a blip with Taylor Wimpey España recording enquiry levels returning to pre-Brexit vote levels.

December 2017 saw the sixth consecutive month of growth in sales to British buyers for Taylor Wimpey España with the majority being made at the upper price point of €450,000 and beyond, a trend never seen before.

Whilst conscious of the potential implications of the wider macro-European economic environment, our latest figures confirm that Spain remains very much at the top of the list for British second home buyers.

“Affluent British citizens are looking to place their money outside of the UK, in Spanish property, with view to Brexit in April 2019. Spain is deemed a safe heaven and we expect to continue to see greater number of purchasers at this higher price point.”

Marc Pritchard, Sales and Marketing Director, Taylor Wimpey España

  1. The Costa Blanca goes international

Official figures show that Spain has once again seen record-breaking levels of tourism with 77.8 million foreign nationals visiting between Jan – Nov 2017, up from 75.6 million for the whole of 2016 (Frontur).

British tourists accounted for 18 million (23%) visitors for the 2017 period, a 7% increase on the same 11-months in 2016 followed by German and French tourists at 11.4 million and 10.7 million respectively.

Perennial favourite, the Costa Blanca (White Coast) saw its popularity rise once again in 2017 not only with holidaymakers but also second home buyers from all over the world according to Taylor Wimpey España.

A 50% year-on-year rise in Costa Blanca sales was recorded by Taylor Wimpey España in November 2017 with more than 20 nationalities in total purchasing in the region through the housebuilder last year.

Well regarded as offering a wide variety of quality homes at affordable prices, the Costa Blanca attracts those with a budget between €170,000 and €210,000. The historic fishing village of Torrevieja has become a hotspot for Russian buyers attracted by developments such as La Recoleta III whilst Scandinavian buyers are already registering their interest in the next phase of the hugely popular Brisas de Alenda Golf development in Elche.

3. Benahavis and Santa Ponsa are areas to watch in 2018

With demand set to rise further still throughout 2018, Taylor Wimpey España is on hand to provide a number of new developments for prospective buyers in the most sought-after areas.

New releases are to come in the three areas Taylor Wimpey Espana is working this year; Mallorca, Costa Blanca and Costa del Sol. Two areas to watch include Benahavis, one of Costa del Sol’s most exclusive area located In Malaga. Known for its high-class restaurants and fine cuisine, buyers from all over the world will be clambering to secure one of the stunning homes at Taylor Wimpey España’s  Botanic new development.

Situated in Mallorca’s southwest, the quiet town of Santa Ponsa will also be one to watch in 2018. Offering panoramic views of both the shimmering Mediterranean Sea and Santa Ponsa III golf course upon which the new Marina Golf development sits, these new homes will offer peace and seclusion as well as a whole host of on-site amenities and traditional village charm.

For more information please contact Taylor Wimpey España today on 08000 121 020. If you reside outside of the UK you will need to call 00 34 971 706 244.

 *Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures.

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