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Coastal markets lead Spanish property comeback

Monday 3rd October 2016

Written by Roy Weatherby, The Overseas Investor

The Spanish property market is springing back from years of adversity, with buyers both domestic and international getting involved again in a big way. Some of the nation's key tourist markets, primarily popular coastal locations such as Malaga, are very much leading the recovery and proving popular with buyers of every kind.
Through 2016 up to the end of June, nearly 33,500 homes have been bought and sold in Spain. This is an increase of roughly 20% compared to the same portion of last year, and also marks the fifth consecutive month of sales growth exceeding 10% across the majority of Spain's regions.
Popular coastal regions represented many of the first areas to show signs of recovery and, along with major cities, have been consistently at the forefront of Spain's bounce back ever since. It is these coastal regions that are now bringing the post-downturn Spanish property market to new highs, and they seem to be doing so in a much more stable and sustainable fashion than in the boom years from before the global financial crisis that hit Spain's market with so much force.
Data from the School of Property Registrars shows that Spain's sunny Mediterranean coast is, as ever, a key driver of its property market and therefore plays a central role in its recovery. For example, in the ranking of regions in which property sales are showing the fastest growth, Alicante came in third place beaten only by Barcelona and Madrid. 
When you consider the huge disparity between the populations of the two cities that topped the list and the comparatively quiet Alicante, this is no small feat and shows just how disproportionately strong coastal regions are in property terms right now.
A large portion of sales in Spain's coastal regions are from foreign buyers. Expats, particularly retirees, and second home owners who want a property near a sunny, sandy coast have always been drawn to Spain. Property investors from across the globe are also actively buying in Spain's prime coastal areas, keen to take advantage of the recovery as it continues to drive the value of Spanish coastal homes upwards.
One of the key regions right now is Malaga. It is true that, in June, this part of the Costa Del Sol was one of only two coastal regions to miss out on double-digit growth in property sales – albeit barely with growth of 9%. However, in a sense Malaga did not need as much growth as other regions to distinguish itself as a strong performer. 
Once figures are adjusted for density of population, Malaga has the highest level of property sales of any province. As such, it is important not to be misled by the slower growth of an area which is already ahead of the competition.
Alicante follows as the second busies market for sales after adjustment for population density. However, right now it is hard to find a region on Spain's Mediterranean coast that is traditionally popular with tourists and expats and is not doing well at the moment.
For more information on property investments in Malaga, please contact Hopwood House

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