- 62% of enquiries in September were for properties costing €150k or less
- Interest in properties costing €250k or more is falling
- Top 5 Spanish destinations all boast average enquiry price of €150k or less
“Brexit isn’t denting Brits’ love for Spain, but it is taking a bite out of their budgets.”
This is the message from the latest market report from leading Spanish property portal Kyero.com.
The company’s Spanish Property Report September figures reveal that buyers are beginning to trim their budgets, with enquiries falling on properties over €250,000 and increasing on homes costing €150,000 or less. Overall for the month, 62% of enquiries were for properties costing less than €150,000.
Richard Speigal, Head of Research at Kyero.com, comments,
“September has thrown up the first visible effect of Brexit on the Spanish holiday home market. Overseas interest remains extremely buoyant but buyer budgets have notably reduced.
“With British buyers making up 21% of foreign house sales in Spain (and 27% of Kyero.com’s traffic), the strength of sterling is important. Its fall since the referendum has reduced purchasing power, but seemingly not people’s willingness to buy abroad.
“If Brits do drive a harder bargain it is possible we will see some localised discounting in the coming months, particularly in provinces where they are most active such as Alicante and Malaga. On the flip side, the ballooning price of property in the UK has gifted the 50+ age group enormous power to purchase second homes. With an abundance of property for less than £90,000 and a market returning a steady 5% per year, Spain remains a hugely compelling option.”
Kyero.com’s analysis of trending destinations emphasises buyers’ pursuit of less expensive properties.
The top five destinations were all priced at €150,000 or less. Torrevieja was the most popular area for enquiries during September, with an average price of €110,000. While that kind of money wouldn’t go far in the UK, in Torrevieja €110,000 is enough for properties ranging from a three bedroom penthouse apartment just 200m from the sea to a picturesque townhouse close to the beach.
Homes at Murcia’s Alhama Golf Resort were the second most enquired after location during September, with an average price of just €73,000. Properties in LLiria were next, at an average cost of €110,000, which is sufficient to buy a detached, four bedroom villa with its own pool.
The fourth most popular destination – Alicante – saw prices rise to an average of €144,900, which is enough for anything from a three bedroom apartment with communal pool to a four bedroom country house with pool and barbecue. Corralejo, on the island of Fuerteventura, took the fifth spot, with an average price of €150,000 – enough for a range of contemporary villas close to the beach.
With 434,000 users in September and 62,596 recorded property enquiries, Kyero.com’s research provides significant insights into the state of the Spanish property market and in particular the impact that British buyers are having. Brits are the single largest overseas nationality in the market and their actions are significant as a result. Analysts will be watching carefully to see the knock on effect that Brexit may have on Spanish house prices as a result of British buyer activity over the coming months.