Spanish Property Market is Booming despite Brexit

Spanish Property Market is Booming despite Brexit

 Are you planning to sell your property in Spain fast? This is certainly a good time to be involved in the Spanish property market as the economy has been growing fast. Exports are on the up, unemployment is at a low and the country has raced back to normalcy after years of an economic slowdown.

Certainly, this is good news not just for Spain, but for the whole of Europe. There is a huge demand for properties for sale in Spain, especially as the tourism in the country hits record levels. In 2016, there were an estimated 75 million tourists that visited Spain. This time the numbers are expected to cross 80 million.

Since the tourism sector is closely linked to the overseas property market this is good news indeed for those who want to buy property in Spain online.

So the demand for Spanish properties remains high despite Brexit. While the British interest has flagged off slightly because of the uncertainty in the UK not just over Brexit but also over the political situation in the country, fast is buyers from other nationalities are picking up from where the Britons have left off, and are making up for the shortfall.

As a report from CaixaBank Research puts it, there is a huge demand from foreign investors for properties in Spain:  “On the one hand, most of the purchases are located on the Mediterranean coast and the Islands (Canaries, Balearics). These account for over 30% of the total of property buys in some areas. On the other hand, the trend in the purchases is very different, according to nationalities.”

CaixaBank Research notes that there is certainly a shortfall in the demand from Britons for properties in Spain by 13% since the previous year. But buyers from other countries have made up for it: “This drop is being more than offset by demand for homes on the part of French, German, Belgian and Swedish nationals. In Q1 2017, their purchases rose by 20% or more on a year-on-year basis (data accumulated over four quarters),” the CaixaBank Research report says.

Britons are still on the top of the list of overseas buyers, but they now account for 15% of total foreign purchases in Q1 2017 compared to 21% in 2015, according to CaixaBank Research.

Now, as the Brexit negotiations go forward and the British pounds regain some of the lost ground, it is certainly possible that British buyers will return to the Spanish housing market. Analysts from CaixaBank note that any further uncertainty over Brexit could make things more difficult and even “cast a cloud over any recovery…UK nationals have traditionally been very sensitive to economic conditions in their own country.”

Meanwhile, there is a real demand for properties in Spain, especially in Costa del Sol, Alicante, Murcia, Canary Islands and other popular tourist areas from German and Swedish buyers. They have been gradually replacing Britons and are on their way to becoming the most prominent investors in Spain. 

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