# Increase in property prices



## jay1970 (May 2, 2012)

Hi All
I've noticed property prices in mainland Spain and the Canary Islands has drastically increased over the past few months.
Can I assume this is a seasonal (summer) thing, to entice holiday makers, and that they will/may deflate to their previous prices over the winter periods, or has the demand for housing stock just shot through the roof?

Thanks 

Jay


----------



## danboy20 (Jul 10, 2017)

Certainly not a seasonal thing....we´ve been very busy for over a year and a half. 

Hell of a lot of Brits - I presume because they want to buy before Brexit is finalised.


----------



## jay1970 (May 2, 2012)

danboy20 said:


> Certainly not a seasonal thing....we´ve been very busy for over a year and a half.
> 
> Hell of a lot of Brits - I presume because they want to buy before Brexit is finalised.


Bloody hell, panic buying. Looks like I may have to look at buying when things have settled down, god knows when that will be.


----------



## xabiaxica (Jun 23, 2009)

danboy20 said:


> Certainly not a seasonal thing....we´ve been very busy for over a year and a half.
> 
> Hell of a lot of Brits - I presume because they want to buy before Brexit is finalised.


Will that make a difference?


----------



## jay1970 (May 2, 2012)

xabiachica said:


> Will that make a difference?


My initial thought it may be a ploy to try and extract as much dinero as possible, that's the only reason, unless folk are panic buying before brexit ( not that anyone knows what brexit will be) so who knows?


----------



## danboy20 (Jul 10, 2017)

xabiachica said:


> Will that make a difference?


Probably will be exactly the same as before, but I definitely think it is one of the reasons for increased sales to Brits....a kind of "we should do it now or we never will"


----------



## Alcalaina (Aug 6, 2010)

Let's get this into perspective. In 2017 only 12% of the 60,000 properties sold in Spain were purchased by foreigners. Of that 12%, just 15% were Brits.

Sales are picking up and therefore prices are rising, but that's because the Spanish economy is picking up and unemployment has fallen.

https://www.idealista.com/news/inmo...uelve-a-batir-record-superan-las-61-000-casas


----------



## Pesky Wesky (May 10, 2009)

Alcalaina said:


> Let's get this into perspective. In 2017 only 12% of the 60,000 properties sold in Spain were purchased by foreigners. Of that 12%, just 15% were Brits.
> 
> Sales are picking up and therefore prices are rising, but that's because the Spanish economy is picking up and unemployment has fallen.
> 
> https://www.idealista.com/news/inmo...uelve-a-batir-record-superan-las-61-000-casas


Absolutely. It's true that Spain's economy depends on tourism and people from the UK make up a large part of that and it will hurt if for some reason this percentage falls, but Spain does not depend on the British holiday maker nor the British home buyer.
House prices are going up in many parts of Spain and building is increasing, although nothing compared to pre recession when Spain was the world's largest consumer of cement!!! It does look as though we might be heading for another crash in construction in a couple of year's time though


----------



## trotter58 (Feb 8, 2017)

jay1970 said:


> Hi All
> I've noticed property prices in mainland Spain and the Canary Islands has drastically increased over the past few months.
> Can I assume this is a seasonal (summer) thing, to entice holiday makers, and that they will/may deflate to their previous prices over the winter periods, or has the demand for housing stock just shot through the roof?
> 
> ...


I'm not sure whether property prices are increasing as such but there's lots of new building taking place near us. Apartment blocks that were once abandoned are now being completed and marketed. Plots of land that only had basic infrastructure are now being fully developed and our local estate agent is constantly taking new arrivals to view property. 
I suspect this surge in new building will keep resale property values at a sensible level though. It's a supply & demand sort of thing, with an eye on the exchange rate and a nod to the Brexit negotiations ..... All looking more positive for Spain though.


----------



## Isobella (Oct 16, 2014)

Couldn' say for the whole of Spain but the CDS is still depressed. Every year prices are said to be rising but I don't see it in places I know. Agents were saying prices were rising years ago when anyone on the ground knew it was rubbish. Saw this and had to smile. I am curious to know how they can predict price rises.
https://www.spanishpropertyinsight.com/2018/01/10/property-prices-to-go-up-6-in-2018/

The link doesn't work, perhaps it can be found!!


----------



## danboy20 (Jul 10, 2017)

Isobella said:


> Couldn' say for the whole of Spain but the CDS is still depressed. Every year prices are said to be rising but I don't see it in places I know. Agents were saying prices were rising years ago when anyone on the ground knew it was rubbish. Saw this and had to smile. I am curious to know how they can predict price rises.
> https://www.spanishpropertyinsight.com/2018/01/10/property-prices-to-go-up-6-in-2018/
> 
> The link doesn't work, perhaps it can be found!!


They definitely are rising, and the CDS market is certainly not depressed. They calculate price rises by the price houses are selling for, and the price houses are being advertised for.


Please take a look at most recent statistics from one of the biggest online advertisers:

https://data-assets.kyero.com/reports/province/malaga.pdf


----------



## Pesky Wesky (May 10, 2009)

Map of Spain showing increases March to June this year.
https://www.idealista.com/news/inmobiliario/vivienda/2018/07/02/766339-la-vivienda-usada-se-encarece-en-primavera-el-precio-sube-un-2-7-entre-abril-y-junio


----------



## jay1970 (May 2, 2012)

trotter58 said:


> I'm not sure whether property prices are increasing as such but there's lots of new building taking place near us. Apartment blocks that were once abandoned are now being completed and marketed. Plots of land that only had basic infrastructure are now being fully developed and our local estate agent is constantly taking new arrivals to view property.
> I suspect this surge in new building will keep resale property values at a sensible level though. It's a supply & demand sort of thing, with an eye on the exchange rate and a nod to the Brexit negotiations ..... All looking more positive for Spain though.


Yeah I get that prices will increase on market principles of demand and supply, and I guess you would expect a natural market increase, but genuinely, I've noticed a vast increase since the winter. Maybe, I should of brought in the winter 🙄


----------



## Megsmum (Sep 9, 2012)

Those links show “ some “ areas of Spain increasing, my own area down 1.4%. Spain is not just the costas and Andalucía


----------



## Pesky Wesky (May 10, 2009)

Megsmum said:


> Those links show “ some “ areas of Spain increasing, my own area down 1.4%. Spain is not just the costas and Andalucía


I agree, but the map I gave a link to is updated monthly and there are quite a few changes between months. It's not just Andalucia and the Costas that are affected. Madrid, Barca, Bilbao, Cantabria have all seen rises recently. Your area though is quite rural I think and not usually so affected by issues of construction perhaps?


----------



## Horlics (Sep 27, 2011)

Beware of talking about property prices "in Spain". It's a big country with regional differences, just like any talk about prices in the UK should take into account the so-called north south divide.

Over in Javea prices have been going up. A friend bought an apartment 2 years ago for 120k. The same thing now would cost 150k. There are new builds and the ones in the best areas are being fully sold before completion.

I don't know if this means somebody should hold back though. We've just passed through an almost decade long period of depressed prices. There were bargains to be had. Anybody observing all of this should have got on the pot, had a p*ss, and should by now be listening to the cistern refilling having been flushed.


----------



## Lynn R (Feb 21, 2014)

https://www.idealista.com/inmueble/81528064/

This development, in Torrox Costa (an area very popular with German buyers) was finished just as the property crash began, and I remember that the apartments were originally marketed at over €300k and gradually reduced, until I saw some reduced to €180k. This 2 bedroom example is now on the market for €350k (nothing to say they'll achieve that, of course, but it just shows how asking prices have gone back up) - in some areas.

This time last year I bought an ático here in Vélez-Málaga. There aren't any currently advertised for sale within €20k of what I paid, apart from ones with sloping ceilings (abuhardillados) which I can't stand. Although given what we've spent on it, plus the buying costs, I certainly wouldn't make a profit if I sold, so it's immaterial really!


----------



## 95995 (May 16, 2010)

Well at least LynnR noticed that *it's not just Brits who buy property in Spain*! If property prices are on the rise, *it may well be : probably is a good thing *and there are other statistics that indicate the economy has improved - and Spain is I think 'off the hook' as far as the Euro zone is concerned. Nonetheless, property prices are still cheap compared with the UK. You take your chances, but those who hesitate …..


----------



## Lynn R (Feb 21, 2014)

EverHopeful said:


> Well at least LynnR noticed that *it's not just Brits who buy property in Spain*! If property prices are on the rise, *it may well be : probably is a good thing *and there are other statistics that indicate the economy has improved - and Spain is I think 'off the hook' as far as the Euro zone is concerned. Nonetheless, property prices are still cheap compared with the UK. You take your chances, but those who hesitate …..


Where my own property is, buyers are almost exclusively Spanish - we do have some foreign buyers but on the whole they tend not to go for apartments near the centre of town. Therefore I think it IS a sign that the Spanish economy is improving that the type of property Spanish buyers are interested in is increasing in price.

Although, EverHopeful, other posters have pointed out in this thread (Alcalaina and Pesky Wesky) that the number of properties bought by British people in Spain as a whole is actually only a very small percentage.


----------



## Pesky Wesky (May 10, 2009)

Horlics said:


> Beware of talking about property prices "in Spain". It's a big country with regional differences, just like any talk about prices in the UK should take into account the so-called north south divide.
> 
> Over in Javea prices have been going up. A friend bought an apartment 2 years ago for 120k. The same thing now would cost 150k. There are new builds and the ones in the best areas are being fully sold before completion.
> 
> I don't know if this means somebody should hold back though. We've just passed through an almost decade long period of depressed prices. There were bargains to be had. Anybody observing all of this should have got on the pot, had a p*ss, and should by now be listening to the cistern refilling having been flushed.


 Beware about talking about anything "in Spain". I have posted about this frequently in the past... bars on windows, having mains gas, carpets, cutting the grooms tie at a wedding, availability of fresh milk, the temperature, mosquitos... all vary depending on where you are in Spain.
Property availability and price also depends on where you are in Spain.


----------



## Pesky Wesky (May 10, 2009)

EverHopeful said:


> Well at least LynnR noticed that *it's not just Brits who buy property in Spain*! If property prices are on the rise, *it may well be : probably is a good thing *and there are other statistics that indicate the economy has improved - and Spain is I think 'off the hook' as far as the Euro zone is concerned. Nonetheless, property prices are still cheap compared with the UK. You take your chances, but those who hesitate …..


 As did Alcalaina and PW!


Those who hesitate...may save themselves a lot of future headaches


----------



## 95995 (May 16, 2010)

Pesky Wesky said:


> As did Alcalaina and PW!
> 
> 
> Those who hesitate...may save themselves a lot of future headaches


You know, I specifically eluded to LynnR but I did NOT specifically exclude others 

As with most property markets, you take your chances (just like those who have gone before) - there will inevitably be winners and losers. That said I certainly hope that the market doesn't overheat this time and that the banks etc have at least some controls in place - problem is financial institutions are in reality global (whether or not you think they are local) and the world is full of sharks (some/many really are great whites irrespective of what they might lead you to believe).


----------



## jay1970 (May 2, 2012)

EverHopeful said:


> You know, I specifically eluded to LynnR but I did NOT specifically exclude others
> 
> As with most property markets, you take your chances (just like those who have gone before) - there will inevitably be winners and losers. That said I certainly hope that the market doesn't overheat this time and that the banks etc have at least some controls in place - problem is financial institutions are in reality global (whether or not you think they are local) and the world is full of sharks (some/many really are great whites irrespective of what they might lead you to believe).


This is the impression that I'm getting, the sharks may be circulating. 
I know who sold his 2/3 bed apartment in tugise, lanzarote, less than 6 months ago foe around 80k, you'd struggle to get a one bed box now.


----------



## Rabbitcat (Aug 31, 2014)

Well I think things are def on the up in our village

Our council recently had a " pride in your house contest and although my Spanish is still pretty poor it appears we won one of the prizes which can only be good news for our property price 

As ever our council appear to be inclusive as one bit I can translate is where they mention Ireland in the award they put on our door. All quite touching. Cannot wait to get full translation 

"Esta cámara está condenada y será demolida por el consejo
Por favor, saca tus muebles de basura y vete a la mierda a irlanda"


----------



## Overandout (Nov 10, 2012)

I can't help but see these reports in the same way as I see the reports on "extortionate" rental price increases; reported as absolute fact, but actually difficult to evidence.

According to the data reported in the last few years, we should be able to sell our property in Madrid today for around 40% more than when the market started its upturn in Q1 2015... but I can assure you that this is absolute nonsense. By simply looking at asking prices of similar properties (ignoring the actual sale price), the reality is that the price has increased by around 10%.

The same can be said about rents.

Of course, it could be said that we are unlucky, or don't have a property that fits the "average" profile, but what we have to remember is that the figures are just that, an average which most people and properties are not. A few upturns in the high end of the scale distorts a lot of lower end data.

I sometimes get the feeling that these reports are propaganda to entice (frighten?) the consumers into purchasing, even though for the majority of purchasers, the actual price hasn't risen anywhere near as much as is being reported.


----------



## danboy20 (Jul 10, 2017)

Megsmum said:


> Those links show “ some “ areas of Spain increasing, my own area down 1.4%. Spain is not just the costas and Andalucía


I was replying to a poster who referred specifically to CDS.


----------

