International property buyers are taking advantage of Spain’s recovering economy and low interest rates, triggering a rise in the number of property sales and a hike in property prices.
In the first quarter (Q1) of the year 273,151 unique visitors searched on one of Spain’s largest property portals for properties in Malaga region. With such a huge amount of property searches taking place online we can use this data to build up a profile of an international buyer and obtain an insight to occurring trends and patterns.
Buyers in the age bracket 55-64yrs were the most dominant, accounting for 29.1% of enquiries in Q1, according to Kyero’s Malaga report.
Interest from European buyers made up 59.2% of searches, whilst British buyers and buyers from the ‘rest of the world’ accounted for 31.3% and 9.5%, respectively.
The types of properties that international buyers are searching for are mainly apartments, making up 47.1% of enquiries, followed by villas (19.8%), townhouses (17.6%), and country properties (14.2%) and ‘other properties’ (1.3%).
A majority (28.3%) of foreign buyers have a healthy budget of €150,000-€250,000 to buy a property in Malaga. The luxury market (properties over €1 million) attracted 2.41% of buyer enquiries.
Property prices have been steadily rising over the past year thanks to an increase in demand from international buyers. Average property prices in Malaga have grown 4.9% annually to €307,000.
In Q1, Marbella remained the most expensive area for property with average prices reaching just over €508,000; however, this represented a small annual decline of 5.3%. Property prices in Estepona increased by 5.7% to €360,000, €53k above the regional average. Malaga, Nerja and Benalmadena also saw prices grow by 1.7%, 14.5% and 2.2%, respectively.
With a recovering economy and low interest rates demand for Spanish property from international buyers can only increase. As house prices rise to a sustainable level the outlook for the Spanish property sector is looking rather healthy.
To take a look at other regional reports from Kyero click here.