Statistics from the National Statistics Institute.
Property investment in Spain continues to grow, increasing by 5.1% for Q2, helping to expand the Spanish economy by 3.1% during Q2 year on year. Employment in the sector has risen significantly by 9.2%. Job creation is rising at its fastest pace so far this century!
The total amount of wealth created in the sector has also been on the rise and was up by 5.8% in Q2. This is the largest increase since 2001. Driven by greater demand for properties together with increased employment in the sector.
Property prices are up by 5.1% year on year for Q2, having registered a 2.65% increase overall year on year. The correction in prices during the crisis topped out at an average decrease of 30% but this is now 29% signalling the market has already bottomed out on average.
Property sales so far for 2015 are up a massive 11.12% year on year. The increased sales were mainly due to the increase of resales up by a substantial 43.56% whilst new builds decreased by 39.61%.
The Valencia Community were one of the best performers in property sales taking a 10.1% slice. According to the Spanish land registry, foreign buyers made up 12.82% of all property purchases made in Spain during Q1. Sales have been primarily driven by the increase of British buyers, up a massive 37.3% year on year. This means British buyers made up 19.85% of all foreign purchases, meaning one in five buyers are Brits!
All this positive news means property stock has been selling well, especially in the Valencia Community. In Javea and Moraira which has become extremely popular with the more discerning buyer, well priced quality property stock has been pretty much stripped out up to 350,000 euros. Most of what is left behind are projects in need of modernisation. This is leaving property agents with a major problem because it is not being replaced at the same pace! Current demand in this price band has overtaken supply, consequently you see nearly every agent advertising for more stock with clients waiting! All in all well priced property is getting very hard to find but fortunately, we have our finger on the pulse!