Spanish property markets witness recovery
According to Knight Frank, after seven years of stagnation the property market in Spain, the country is experiencing an uptick in sales and prices have reached bottom, according to a new analysis report.
With the Spanish economy improving, unemployment falling, tax revenue growing and a more stable banking system, lending figures are on the rise.
The report points out that the typical mortgage lending rate dropped from 4.21% to 3.29% over the course of 2014 and this has fed through to buyer confidence. Andalucía and the Canary Islands have seen some of the strongest surges in mortgage lending, up 25% and 26% respectively month on month, compared to the national average of 14.2%.
This renewed confidence and interest in Spanish real estate is most evident in Madrid and Barcelona.
Knight Frank also point out that the return of large U.S. investment funds has been notable but not just in Spain’s main cities. The acquisition of Sotogrande by U.S. based Cerberus and developments to the east and west of Marbella by other U.S. funds, as well as the purchase of Monte Mayor golf club by Russian investors hint at the extent to which the recovery is gaining traction.
Marbella, a popular area with overseas buyers is building on a property market recovery that began in 2013 despite Spanish buyers failing to return in any significant number in 2014 and the Ukraine crisis impacting on the number of Russian buyers.