For foreign buyers into the Spanish property market, the situation for real estate investors is stable at the moment, even though the purchase of homes has slowed slightly during the first two quarters of this year. Marbella follows this trend, but as market leaders, Engel & Völkers can still offer a fresh portfolio with plenty of choice.
Foreign interest in the Spanish market has held steady since the recovery of 2010, which was followed four years later by an increase in local demand on the Costa del Sol. In the last two quarters, it has dropped a little, with the Association of Land Registrars stating in its latest report that the number of sales to buyers from abroad, recorded in Spain's land register in the second quarter of the year, is 16,209 compared with 17,338 last year, a drop of only 7%.
British investment in Spanish real estate has always been high, and once again, they have outperformed other nationalities, registering 2,159 purchases, which represents 13% of the overseas market. The French account for 8% and the Germans for 7%, with other countries increasing their share, while top buyers of past years are going the other way. All markets slowed in the second quarter, apart from Romania, Morocco, France and the remainder of the world, so there is still plenty of cause for optimism.
Luckily, positive growth has returned for most countries during the second quarter, so now is a good time to contact market leaders Engel & Völkers. The previously-buoyant UK market in Spain, particularly in the area around Marbella, is still taking a downward turn, however. This is partly due to the uncertainty surrounding Brexit, Britain's proposed exit from the European Union, and the changeable nature of its politics at present, which makes it difficult to predict on any subject. However, this will change in the future.
The often-parlous state of the British pound is another factor holding back UK buyers, together with worries about the post-Brexit continuance of reciprocal agreements and services between the two countries, including residency regulations. While the Spanish government has made provisions for these situations, its British counterpart has not, leaving Spain unable to act. Resolving this will improve confidence in the UK section of the market.
It's worth noting that national sales show signs of slowing too, and this of course covers the local property market in Marbella. International buyers in real estate took up just 12.5% of the Spanish market in the second quarter, and it's possible that this trend could continue for a short while. In the event of any possible fluctuations, Engel & Völkers is waiting to steer clients through a market which has benefits for all. Any falling prices would benefit those who have the vision to buy now, while we can help sellers to get the best deal for their property, even in a more cautious market. However, owners who are prudent enough to wait for the markets to recover, which will surely happen in the near future, will reap the financial rewards.
