Spain’s coastal locations are attracting increasing numbers of mid to high-end foreign buyers as the second home market goes from strength to strength at the start of 2019, new research shows.
Overseas buyers in Spain are becoming more diverse but overall the number did not increase in the final quarter of 2018, new research shows.
Although the property market in Spain continued to see overall growth in 2018, some areas have done better than others, according to real estate experts.
A proliferation of property market regulations, the rising cost of finance, uncertainty surrounding Brexit, and in some markets, a high volume of new prime supply, is weighing on prime prices across the world.
The property market in Spain is set to remain buoyant in 2019 with one firm predicting that prices could rise between 5% and 7% in 2019.
Fewer overseas buyers have been buying homes in Spain in 2018, with the latest available figures suggesting that domestic demand is growing faster than that from foreigners.
The coastal province of Valencia is cheaper and more manageable than Spain’s major metropolises, making it an appealing alternative for many home buyers.
Home-building, buoyed by foreign investment, is thriving in Spain 10 years after a property bubble burst, and the new Socialist government is now looking to rein in some areas of the market
Home prices in Spain, which plummeted after the market crash in 2008, started to recover about three years ago in most areas. At the end of 2017, prices were up 7.2 percent since they hit bottom in 2015, although they are still 37.2 percent below their 2007 peak, according to a report from Tinsa, an appraisal company.
The Spanish resort city of Palma, on the island of Majorca, is to ban flat owners from renting their apartments to travellers, becoming the first place in Spain to introduce such a measure.
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