New home sales grew significantly in the first 11 months of 2018, accompanied by a rise in the number foreign buyers, government data shows.
The Spanish property market continued to grow last year with sales rising by 11% between January and November, compared to 2017, – averaging 43,747 sales per month – according to the National Statistics Institute (INE).
During the same period, new home sales grew 11.5% year-on-year, while demand from foreign buyers increased – accounting for 12% of property sales in Spain, compared with only 4% in 2009, according to the Land Registry.
The new homes market has made considerable progress – in terms of growth and recovery – over the past couple of years and developers are now trying to keep up with the rise in demand for new housing projects. Popular city locations and desirable beach areas are attracting second-home buyers looking for holiday homes and properties for potential holiday lets.
The lack of new housing across the country coupled with favourable market conditions and an overall return of confidence in the Spanish property market led to an 8% rise in house prices in the first 11 months of last year; taking the average price per square metre from €1,586 to €1,720, according to property portal Idealista.
Malaga’s property market is expected to grow this year, but there may be a shift in the type of properties being sought; quality modern homes with an emphasis on technology and environmentally friendly buildings will mainly come to the forefront, while some buyers will still be keen to snap up any last remaining bargain properties in less affluent areas before the recovery fully starts to consolidate.<< Residential Property Sales Up 10%