The official figures for May 2023 have been released by the Spanish property registries.
In the whole of Spain the sale of houses has decreased with 6.7% compared to May 2022 and the number of mortgages granted to buy a home dropped with 24,3%. This is obviously due to the jump in interest rates.
In the whole of Spain 54.063 properties were sold in May and 32.043 were financed with a mortgage, that is 59,27%.
More detailed numbers are made available every quarter. The Q2-2023 figures will be released in September and we will than inform you with a more detailed market report.
As you probably know by now we like to inform our clients based on facts. we provide you with the latest statistics and market figures for the real estate market in our region. Below you can find the key figures.
1. Market Overview May:
Despite the national decrease in house sales, on Costa Blanca we notice a stable demand, while Costa
In the region, where and Costa Blanca are part of, house sales decreased with 0,5% in May 2023 compared to last year. shows a slightly different picture.
In fact, 8.887 homes were sold in May 2022 and this year 8.846. Interesting fact is that the decreased number of houses sold is not in line with the national trend whereas the number of mortgages taken out in the decreased in line with national statistics with 24% compared to 2022.
We believe that the strong demand in the region and the economic forces behind it, be it foreign investors or well off nationals, value the Costa Blanca region and maintain their investment plans as they consider the value for money and expected long term national and foreign demand of the Costa Blanca.
In Murcia, where Costa is, a drop of 10,6% in homes sales was noted in May compared to 2022. That is more than the national average. In May 2022 the property registries filed 2.023 homes sold while this year 1.808 sales were registered. The decline in mortgages taken out in Murcia is on the other hand below the national average with 19,2%.
The reasons of the larger than average decline in home sales on Costa can be various.
The increased interest rates can be one, postponed investment plans due to higher costs of living can be another. On Costa property prices are lower than on Costa Blanca, the region provides great value for money we believe, and possibly some investors have temporarily had to postpone their investment until they can save up again.
A third reason may be that Costa Blanca has even more daily connections by plane with the rest of the European Union, United Kingdom and Norway, than Costa . The demand on Costa Blanca could also be partially sustained by young professionals that have decided to invest in a property in Spain now that most companies allow for employees to work from home for longer periods and only come occasionally to the office in person.
We notice a slight decrease in the average age of the investors we attend. Although no actual statistics have been kept by our team we do notice a change since -19. Our clients seem to be younger than before and the majority is well aware that you need to bring 30% of the purchase price to the table + the 10% taxes. A 70% mortgage can be obtained from a Spanish bank to finance the remainder.
2. Economic Outlook Spain:
- The Spanish economy is performing well, even in the face of rising interest rates the inflation in Spain was in May with 3.2% well below the European average of 8.1%.
- According to the Spanish National Statistics Institute ( ), new job creation has increased by 3% compared to the previous year.
3. Company Formation Costa Blanca & Costa Cálida:
- Entrepreneurship is thriving on Costa Blanca. In May, there was a significant increase in new company formations in the . Again Murcia, Costa , showed a slightly different picture.
In the , where Costa Blanca is, 3.640 new companies were created in May, 21,7% more than the year before.
On Costa 654 new companies were created in May, 2,3% more than in 2022.
By comparison, in the whole of Spain 29.592 new companies were created in May. 10,2% more than in May 2022.
Insolvency proceedings Q2
The number of companies in serious financial difficulties that filed for insolvency proceedings in Spain between April and June was 1,073, a fall of 20.2% compared to the same quarter of 2022.
In the , in May 177 companies filed at the courts for insolvency proceedings. A decrease of 19,2% compared to last year.
Murcia however saw a jump of 60% as 40 companies’ files at its courts for insolvency proceedings.
4. Housing Market:
- While there was a decrease in house sales nationwide in May, Costa Blanca bucked the national trend with a decrease of only 0,5% while Costa took a hit of 10,6%.
It seems that investors and entrepreneurs alike remain positive about Costa Blanca. The number of properties sold and the creation of new businesses are a strong indicator of the attractiveness and economic strength. If we than also take into account the new job creations and hotel occupation rates on Costa Blanca, we are confident for future!
Whatever your reason is to invest in a property in Spain, we are here to help you!
See you soon on Costa Blanca!
& the friendly team at real estate agency
When buying a property - wherever that my be - it is good to know that you can travel to your home from within the European Union whenever you want, no matter how adverse the circumstances. The Free Movement of persons in the European Union is one of the corner stones of the E.U. European Citizens and their family members have the right to move and reside freely within the European Union.
You can read more about the possibilities to travel to Spain during the -19 health crisis and restrictions that were applicable here on our website.
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