Last week the official figures for the second quarter of 2023 have been released by the Spanish property registries (Colegio de Registradores de la Propiedad bienes Muebles y Mercantiles de España)..
As you probably know by now, me and the team here at nardia real estate agency like to inform you based on facts. Therefore we provide you with the latest statistics and market figures for the real estate market in our region. The complete report you find here below.
The results from this market report in a nutshell:
Homes sold in Spain -7,3%
Costa Blanca home sales +9,7%
Mortgages: 62,56% of homes sold were financed with a mortgage.
Prices in Spain went up with +3,1%
Costa Blanca prices went up
Foreign demand: 14,94% of Spanish homes are bought by a foreigner
Top 4 nationalities: British, Germans, French and Moroccans (see all 13 nationalities below)
Costa Blanca foreign demand: 44,67%
Costa Cálida foreign demand: 23,56%
In This Market Report:
Homes Sold in the Second Quarter of 2023
Trend: price rises start to slow down
Market Overview Second Quarter 2023
Comunidad Valenciana, Andalucia & Balearic Islands
Shortage of Quality Homes for sale
Trend towards Custom Build Homes
Q2-2023 Foreign Demand by Region
Nationalities that bought most homes in Q2-2023:
Trend: More Cash Buyers
The Spanish Economy
Insolvency proceedings Q2
In the whole of Spain 151.983 homes were sold. 7,3% less compared to the same period last year. The decrease amounts to 5,6% compared to the first quarter of 2023.
Once more the Comunidad Valenciana, where Costa Blanca is, shows that it is different with an increase of 9,7% in homes sold!
The Comunidad Valenciana is with 25.114 home sales in Q2-2023 the second region of Spain with a market share of 16,12% of the total Spanish property market.
Alicante and Valencia are again among the provinces with the most homes sold with 12.622 and 9.829 homes sold respectively.
Compared to the first three months of 2023 In Alicante prices rose with 6,1% for new build homes and 0,5% for existing homes. In Valencia new homes were 5,3% more expensive and existing homes 2,4%.
Murcia noted a rise of 7,5% for new homes and 1,4% for existing homes.
In Spain the average price of the homes sold however has gone up with 4,1% for new build homes and 2.7% for existing homes. Overall home prices in Spain rose with 3,1% compared to the first three months of 2023.
A trend of slower rising property prices becomes slowly visible for the whole of Spain. The quarterly price levels are still on the rise although the annual trend seems to slow down.
Compared to a year before this quarter prices rose with 3,1% whereas the increase was 4,9% in the first quarter compared to a year before.
- In our team we notice a stable demand from our clients who wish to invest in a property in Spain. The Costa Blanca region offers a very attractive – and affordable –life style that our clients highly appreciate. In the second quarter the amount of home sales closed by our team was just above the sales closed a year before and slightly below the first quarter.
The Comunidad Valenciana, where Costa Blanca is, is with 25.114 home sales in Q2-2023 the second region of Spain with a market share of 16,12% of the total Spanish property market.
As we mentioned in our May 2023 market report, property sales went fast and strong in the first part of 2023, right from the start of the year. At the time we were not sure if the season just started sooner or maybe there was a seasonal shift in the buyers’ market. The unusually high amount of sales closed in the first months of the year now seems to have been somewhat compensated in the second quarter when 3,1 % less homes were sold in the Comunidad Valenciana compared to the first 3 months of the year.
Below you find an overview of the most sought after regions, the number of homes sold in the second quarter of 2023, the market share in the Spanish property market and the variation compared to the first quarter of 2023:
#1 Andalusia, 30.698 homes sold, market share 20,46% (-/- 5,0 % compared to Q1-2023)
#2 Comunidad Valenciana, 25.114 homes sold sold, market share 16,12 (-/- 3,1% compared to Q1-2023)
#3 Cataluña, 24.210 homes sold, market share 15,95% (-/- 4,8 % compared to Q1-2023)
#4 Comunidad de Madrid, 18.995 homes sold, market share 12,35% (-/- 4,6% compared to Q1-2023)
#5 Canary Islands, 6.570 homes sold, market share 4,53% (-/- 17,8% compared to Q1-2023)
#9 Murcia, 5.195 homes sold, market share 3,52% (-/- 14,4% compared to Q1-2023)
In the Comunidad Valenciana region, where Alicante and Costa Blanca are part of, house sales rose with 9,7% compared to the same period last year. A total of 101.702 homes were sold in the last 12 months. Murcia, where Costa Calida is shows a rise of 2,5% compared to last year with 22.239 homes sold.
By comparison, in Andalusia a slight decrease of 1,6% was noted whereas the Balearic Islands sold in total 12,4% less homes compared to last year. For the Balearic Islands it is worth mentioning that the decline seems to be completely due to a lack of homes available for sale. The number of new build homes on the Balearic Island rose with 8,7% and the sale of existing property declined with 16,3%.
In our region we notice that the demand for quality homes is high and when you scroll the internet you will see there are a lot of houses and apartments for sale. However, when we take a closer look at location, building quality and perceived value, the demand is much higher than the actually available quality homes.
In our team we also notice that clients more and more consider a custom build home or brand new apartment over an existing property.
At this moment there are 5 villas under construction for our clients on Costa Blanca.
Our team specialises in completely new build homes and off-plan investments in apartments and villas.
If you want to talk about the possibilities, let us know!
The demand from foreign investors rose with 0,42% compared to the first 3 months of 2023. Of all homes sold in Spain, 14,94% was bought by a foreigner.
However, on Costa Blanca 44,67% of homes were sold to a foreigner and on Costa Cálida 23,56%. Both regions show an increase in foreign demand compared to the year 2022.
Comunidad Valenciana 29,91% foreign demand
Alicante 44,67% foreign demand (41,75% in 2022)
Murcia 23,56% foreign demand (19,08% in 2022)
Canary Islands 30,64% foreign demand
Balearic Islands 30,38% foreign demand
Andalusia 14,19% foreign demand
We firmly believe that the strong demand on the Costa Blanca is based on a combination of excellent location in terms of climate and transportation with the rest of Europe, affordable living standard and also specialist medical facilities that are available in your own language.
Based on our sales closed so far this year and the conversations with clients we expect demand to be stable on the Costa Blanca as clients plan to maintain their investments.
British 8,8% | 1.966 homes
Germans 7,25% | 1.619 homes
French 6,65% | 1.465 homes
Moroccans 5,37% | 1.200 homes
Italians 5,22% | 1.166 homes
Romanians 5,15% | 1.151 homes
Belgian 5,09% | 1.138 homes
Dutch 4,61% | 1.030 homes
Polish 3.92% | 869 homes
Russians 3,43% | 760 homes
Chines 3,09% | 685 homes
Swedish 2,94% | 652 homes
Ukrainians 2,72% | 603 homes
In Spain a total of 151.983 properties were sold in the second quarter of 2023 and 93.557 were financed with a mortgage, that is 61,56%. The amount of mortgages granted dropped with 14,5% compared to the first 3 months of the year.
In Spain the average mortgage granted is 141.059,- euros. Of all new mortgages granted 62,55% opted for a fixed interest rate and the average repayment term is 24,58 years with a monthly instalment of 703,90 euros.
By comparison: in our market report for the year 2022 we noted that 71,72% of all properties sold in 2022 were financed with a mortgage in Spain.
It seems more home buyers in Spain decide to pay cash for their home. The decrease of 14,5% in mortgages granted (15.849 mortgages less) is a much higher than the drop of 7,3% in homes sold (9.041 less homes sold).
In Comunidad Valenciana 10.984 homes were financed with a mortgage in the second quarter of 2023. That is 43% of the 25.114 homes sold.
In Murcia 2.662 mortgages were granted for the purchase of a home. That is 51% of the 5.195 homes sold.
Both Costa Blanca and Costa Calida show that more homes are paid cash than the national average of 61,56%.
- The Spanish economy is performing well, even in the face of rising interest rates the inflation in Spain was in August with 2.6% well below the European average of 5.3%.
- According to the Spanish National Statistics Institute (INE), new job creation has increased in the second quarter of 2023 by 2.88% compared to the year before.
- Entrepreneurship is thriving in Spain!
In July, there was a significant increase in new company formations in the Comunidad Valenciana and in Murcia too.
In the Comunidad Valenciana, where Costa Blanca is, 1.077 new companies were created in July 2023, 15.2% more than in July 2023 (in May a rise of 1,7% was noted compared to May 2022).
On Costa Cálida 258 new companies were created in July, 36,%% (in May a rise of 2,3% was noted compared to May than in 2022).
By comparison, in the whole of Spain 8.292 new companies were created in July. 15,4% more than in July 2022.
The number of limited liability companies in serious financial difficulties that filed for insolvency proceedings in Spain in the second quarter of 2023 1.132, a rise of 38.2% compared to the same quarter of 2022 while compared to the past 12 months a decrease of 12.6% is be noted.
Our agency has been in the business since 2013 and we have a strong connection with the real estate market. Through our clients who trust our market knowledge to invest and on the other side through our extensive network where we deal directly with the best property developers, top quality construction companies, international investment funds, Spanish banks and real estate portfolio managers.
Our vision on the property market for the medium long term is that investors and entrepreneurs alike remain positive about Costa Blanca and Costa Cálida. The number of properties sold is considerable and the creation of new businesses is on the rise. The fact that many more properties than the national average are paid for in cash, without mortgage financing, is a strong sign of a solid property market that investors are confident to invest in.
All of these indicators confirm a solid sentiment with a strong indicator of the regions´ attractiveness and economic strength.
At nardia real estate agency we are confident for the medium long term future