Low Spanish property prices could see British Buyers taking advantage despite Brexit

It seems as though British buyers are still interested in purchasing property in Spain but only of sellers who are willing to reduce their asking price.

Despite the outcome of the EU referendum, British buyers are still showing an interest in Spanish property, especially from holiday home buyers and those looking to move to the country.

The index shows that Spanish sellers may have to reconsider the price of their property especially if they do not live in the more popular areas. Asking prices fell by 1.4% month on month to the lowest level they have been at since the economy ran into problems.

However, there are differences throughout the country and as some areas continue to fall others are showing signs of recovery. Many of the large cities as well as coastal areas have increased considerable since the economy slumped and Barcelona and Madrid are leading the recovery march with growth of 19.5% and 6.4% respectively.

Prices are falling in inland areas while the coastal areas are rising and this shows that there is a two speed recovery in place. In Malaga, prices increased by 1.5% during the first quarter while the Costa Blanca experienced a 0.8% increase. This could lead to more foreign buyers moving into the market and the signs are there as enquiries have increased.

The number of British citizens looking to move abroad has increased by 30% and Spain is one of top destinations. One of the reasons for this is that the pound is weakening and this means that Spanish property is priced at 30%-35% lower than it was when the market peaked in 2007. Spanish banks are also offering mortgage packages that are now very competitive.

As the UK has left the EU, the effect of this decision will be seen in the resort areas such as the Costa Blanca as many British expats live there along with holiday home owners who have taken advantage of the lower priced properties.

It is still relatively early to truly see what effect the decision will have but Spain will always appeal to British buyers even though prices could be slightly higher when they do decide to buy there. It is possible that British buyers, in the long-term could benefit from purchasing property for sale in Spain as the sale price has consolidated and in those popular area prices have continued to grow.

Rental property is also attractive to those buyers who are purchasing new development properties as they come with yields of 4%. Therefore, there is hope that there could be a positive impact of the UK leaving the EU on the Spanish property market.

A large number of non-European purchasers have begun to show an interest in alternative city locations that also offer exceptional investment opportunities. It is also possible that some London Banks could move staff to Madrid.

Mark Burns

Mark Burns is a Director and Property Investment Consultant at Hopwood House. With over 10 years' experience in property investment, Mark has provided investors with a wide range of opportunities in exotic locations around the world.

You May Also Enjoy

Breaking News

Barclays: Mortgage and rental spending grows as younger buyers turn attention to new builds

Mortgage and rental spending grows 2.0 per cent, but consumer confidence remains unchanged   Rent and mortgage spending grew slightly year-on-year in January, up from 1.8 per cent in December Consumers’ confidence in their ability to afford rent and mortgage payments remained unchanged month-on-month at 52 per cent Those who have recently remortgaged onto higher…
Read More
Marketing

How to Generate more Estate Agency Property Leads

There is said to be over 50,000 estate / letting / auction agents across the UK, a figure that has remained relatively steady over the last few years. With over 7,000 in London alone, the industry of selling and renting property is undoubtedly well serviced with no shortage of options for consumers to chose from.…
Read More
Breaking News

UK’s Housing Crisis Deepens as 1.4 Million Homes Sit Unbuilt

Cornerstone Tax reveals that 19% of tenants have been forced to move five times in less than five years due to landlords exiting the market David Hannah, Group Chairman of Cornerstone Tax, urges the government to focus on addressing the wider housing affordability crisis by incentivising landlords The government’s plan to develop 12 new towns…
Read More
Rightmove logo
Breaking News

Rightmove House Price Index: Price growth slows as stamp duty deadline looms, but activity remains robust

The average price of property coming to market for sale rises by 0.5% (+£1,805) this month to £367,994, a muted price rise for this time of year as new sellers lower price expectations, due to the looming stamp duty deadline and high competition: The number of available homes for sale is at a 10-year high,…
Read More
Marketing

Attracting the Right Buyers: Digital Strategies for Real Estate Agencies

Okay, let’s talk approximately how real property companies have promoted houses in recent times. It’s not as adored as it used to be! They cannot just place up a signal and expect human beings to be exposed. We stay in a virtual world, and that means they want to use smart online strategies to locate…
Read More
Breaking News

Rise in no fault evictions

No fault evictions have risen according to the latest data published by the Ministry of Justice. Property disputes lawyer says “some landlords are unwilling to wait for the new Renters’ Rights legislation and are choosing to leave the market” Landlords can apply for an accelerated possession order if the tenants have not left by the…
Read More