The Spanish property market is still looking strong despite financial challenges in other parts of Europe

There is still no sign of the property market taking a down turn in Spain. We find property prices are still going up and more and more people decide to relocate and take advantage of remote working and at the same time enjoy the many days of sunshine southern Spain has to offer. We have seen a decline in buyers from the Northern part of Europe due to interest rates being hiked up and the usual Swedish majority of buyers have dropped significantly from being in the top three down to tenth place amongst foreign buyers in Spain according to the Spanish registration authority Registradores.

The statistics we see is very clear, the Swedes are no longer the top foreign buyers in Spain. There is a lot of concern and nervousness of increase in interest rates and stock market down turn which supports the current plunge in property prices in Sweden.

After the property boom in 2021 and with the war in Ukraine earlier this year, the general feeling was that the property prices would be likely to stagnate or drop especially after the announcement of increase in interest rates and high inflation across Europe, but instead we have seen an increase in demand for properties on the Costa Del Sol and also rising prices, says Fredrik Serneholt, CEO at Serneholt Estate. He also mentions Serneholt Estate has always had a high activity amongst Scandinavian buyers but have seen the demand shift to Eastern Europeans such as Ukraine, Poland, Rumania, Bulgarien and Estland who has strong rent and purchase power along the Coast. Holland, Belgium, Denmark, France and Italy are other European countries where we have seen an increase in demand.

Increase in Property prices

The increase of property prices and number of completed property purchases across Spain is on the up, according to recent analysis released by Registradores. To share some statistics, 640 082 property completions have been registered in 2022, which is the highest number since 2008, which makes it a yearly increase of 19.8%. We can still see an increase in property prices, however it has stabilised somewhat to 1.59% in the 3rd quarter and 7.59% on a year-on-year comparison. Looking at the price per square meter, the average is roughly around 2000 Euro per sq m.

It is still seen as a good time to invest in a property in Spain, there is a high demand in rental properties and can be cost neutral if you rent your property out between 10-15 weeks per year and enjoy your property the rest of the time. If you are looking to sell, your property has most likely increased in value says Fredrik Serneholt.

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