Real estate market trends for 2017
Experts in the real estate market of Spain say that we are facing a phase of recovery. This makes the Spanish real estate sector extremely attractive for investment. In this post we will analyze all the trends of the real estate market for the year 2017.
1. The number of rents increases considerably compared to the previous year
Whether it is an usual or a holiday residence, a considerable increase in the rent of apartments and rooms is taking place during this 2017.
There is a tendency to rent apartments and rooms because of its numerous advantages, since with this type of rentals you get an extra income in the family economies and it is also a much cheaper option than the traditional accommodation or the purchase of a property.
The low salary level that still exists in some parts of the Spanish territory makes that young people prefer to rent before purchasing a property. Some municipalities of the Spanish territory promote by means of incentives the renting of houses with the purpose of favoring the independence of the youth and the economic reactivation of the real estate market.
2. Rental prices increase in the cities
Having a large demand for rental of flats, prices in cities have been rising exponentially. In large cities, such as Barcelona and Madrid, the average rental price of a property amounts to 1,800 euros. Due to this, it is very common to find the rental of rooms in the same property in order to obtain lower, affordable prices for young people. Young people between the ages of 18 and 30 prefer the rental of apartments rather than purchasing one.
One of the main trends observed in consumers is the purchase of properties, often second-hand, to reform and later rent them. This practice, which is an initial investment, is greatly favored by the need for youth previously exposed to rent properties because of their low income.
3. Increased purchase of residences in the peripheral and beach areas
The gradual recovery of the economy in Spain has speeded up again the purchase of residences in the peripheral areas of the big cities and the beach side.
Due to the crisis of the last 8 years, the offer that we can find of houses considered as “second residences” is very high. This makes prices very competitive and for less than 100,000 euros we can buy villas or apartments on the beachfront.
There is a clear tendency among the population of the big cities to move to areas with less population, but well communicated with the city center.
In the Community of Madrid many people buy their homes in areas such as Las Rozas, Rivas, Getafe or Alcobendas, where they can enjoy natural spaces, more tranquility and better prices than in the center of the capital.
With regard to beach areas, the improvement of the Spanish economy has led to an increase in the demand for properties in coastal areas, greatly revitalizing this sector that was so affected by the crisis.
According to the APEI (Spanish acronym for Professional Association of Real Estate Experts) in 2017, the upward trend in prices and sales in the real estate sector has continued. The prices are adjusted to all the autonomous communities according to the pace of the economic recovery. For this reason all real estate developments are planned taking into account the real needs of each of the autonomous communities, unlike what was done in previous decades.
4. Energy saving and efficiency in properties
The EPBD (Energy Performance of Buildings Directive), which is the European Union’s main standard to ensure compliance of the established building objectives, ensures that the year 2020 will be key for the newly built real estate sector to approach the ideal of energy certification. This means that the real estate sector will be able to reduce to the maximum the environmental impact and to use efficiently the natural resources.
In 2017 we are seeing how sustainable housing, colloquially called “green housing”, is a reality and not an utopia.
These properties are characterized by at least the Energy Rating B, high levels of lighting, heating and cooling themselves or by means of clean renewable energies.
Although they tend to cost more than traditional homes, they mean a great deal of energy savings in the medium and long term, which means that their environmental pollution is considerably lower.
5. Increase in the purchase of new homes
According to data provided by the General Council of Notaries, the year 2017 is being characterized by an increase in the purchase of new properties compared to the previous year. The purchase “off plan” has been favored by the progressive salary improvement of some sectors of the Spanish population.
One of the main destinations to buy both new and second-hand properties is the province of Malaga, especially on the well-known Costa del Sol.
According to the report “Housing in Costa 2017”, carried out by real estate appraiser Tinsa, the holiday housing market in La Axarquía (Málaga) is in a clear recovery phase. Proof of this is that the increases in housing prices on the Andalusian coast with Málaga capital, Manilva and San Fernando have been accentuated as the most revaluing enclaves in the last year.
Although the recovery of the real estate market takes place in most of the Spanish territory, there has been a fundamental increase in the purchase of houses in the area of Axarquía, Tarifa and the West coast of Málaga, Marbella-Manilva.
Since 2014 it has been observed that prices continue to evolve strongly in the towns of Málaga, reason why the investment in these moments in real estate purchase has assured benefits in the next years.
At DeLuxEstates we have advised hundreds of people in the purchase of homes on the Costa del Sol. As a real estate agency specialized in the sale and rental of luxury properties, we know the best options on the market in the areas of Marbella Center, Puerto Banús, Marbella East, the Golden Mile and Estepona.
We can guarantee buyers who will find the house of their dreams and sellers that their property will have the market price in a real time, using all the knowledge and experience of our team.
At DeluxEstates we offer a wide variety of properties for both sale and rent, which have been previously selected by our team of professionals.
Our clients are always satisfied and endorse the great professionalism we have in each of the services we offer.
We hope you enjoyed this post on the trends in the Spanish real estate market for this year 2017. If you want to obtain any kind of information related to the services we offer in DeLuxEstates, feel free to contact us.
Posted on 17/08/2017