Two sectors of the Andalusian property market operate completely independently of each other, with separation more obvious since the 2008 global crash.
Domestic market is totally bound to what happens in Spanish economy. Spanish purchasing power remains quite weak because the economy has not yet recovered from the crisis and unemployment is still high. At the same time, the purchase of homes by foreigners has been living its sweetest moment for a decade, especially on the coasts, almost doubled and already represents 2 out of every 10 operations closed in Spain, according to data from General Council of Notaries.
The overseas buyers are benefiting from prices that are still below the pre-crash numbers and fixed rate mortgages on offer in Spain.
Overseas Andalusian Property Market
Andalusian overseas property market looks really bright. About 65% of all property purchases in Spain currently happen in a few locations and Andalusia is among them.
According to the notarial information, in 2017 overseas buyers represented 19% of the total market nationally, while in Andalusia they represented 28.1%. Foreigners also dominate at luxury property market, with 75% market share of purchases above 1mln Euro.
In 2017, 18% of all foreign buyers in Spain bought in Andalusia (2nd highest after Costa Blanca). Increase in Demand and Prices. These statistics are actually amazing. During half a year Andalusia welcomed 8,995 foreign buyers, while Cantabria just 152. While activity is low and prices are still falling in some areas with domestic buyers, the regions with active overseas sector are enjoying strong growth and rising prices. And in the most prime areas like Marbella demand for quality property is outstripping supply.
Which Part of the Andalusian Market is most attractive?
According to data kyero.com presenting Andalusian real estate activity data in January – March 2018, most of all transactions were made in Malaga province (8,472), while Sevilla had 4,642, Jaen 1,316 and Granada, Cordoba, Cadiz, Almeria, and Huelva were in between.
Property market along Costa del Sol traditionally has been offering the best returns on investments. Andalusia’s overseas tourism market is booming, allowing property owners generate rental income, from both long and short-term lets.
Andalusia’s hotspot is definitely Costa del Sol, with its own hottest spot Marbella area!