Costa del Sold! Spain gains again as property market picks up

Spain’s property outlook for 2015 looks more assured than it has done for years.

The winters of discontent that have damaged southern Spain’s tourism, hospitality and real estate industries in recent years have skidded to an abrupt halt in 2015.

Despite the Costa del Sol shivering through one of its coldest winters in around a decade so far in 2015, data from its property industry is sure to warm the heart…

According to official figures, the number of mortgage approvals in Andalucia has risen by 25 per cent so far in 2015 compared to last year, which continues the upward trend first noted in November last year when 14,500 mortgages were approved across Spain – a monthly increase of 14.2 per cent.

For the Rightmove Overseas website – a spin-off of the successful UK real estate portal – this trend has been reflected in a 72 per cent month-on-month increase in unique visitors in January compared to December, which suggests that more and more Brits are looking to take advantage of the strong pound and recovering markets to snap up a second home in the sun.

According to Rightmove, the most searched-for country on its dedicated overseas portal was Spain, followed by France, the U.S., Portugal and Italy. A survey by Rightmove found that 37 per cent of Brits looking at buying a home overseas searched for Spain, with 23 per cent opting for France.

“There is a feeling that prices in some of the favourite second home destinations like Spain, France and Italy – which are down between 30 per cent to 40 per cent since the crash of 2008 – are, if not hitting the floor, then at least approaching it,” residential researcher at agents Knight Frank, Kate Everett-Allen, told the Guardian.

Grouped together, there may be some truth in the observation that Europe’s leading real estate destinations may still be experiencing price falls. However, as recent reports in Spain reveal, there are wide regional disparities between price and price trends, with areas of the Costa del Sol actually recording slight price increases in recent months.

As prices have stabilised and slowly picked up, so has interest in the real estate market, particularly from British buyers eager to invest in a lifestyle property on the Costa del Sol – the region of Spain that boasts the widest choice, the most balanced prices and the more mature infrastructure.

“The number of online viewings we have had bodes well for the Spring,” added Everett-Allen, who remarked that Easter is a popular time for enquiries in the Spanish property market.

But why wait until Spring? With economists expecting the pound to stay strong against the euro for at least a couple of months, now might be a good time to get the ball rolling on purchasing that dream home in Spain.