Average house prices in Spain grew by an average 5.7% in 2018, which puts a smile on the face of anyone who invested in a permanent home or vacation investment rental property in the preceding years. However, rising prices are a good thing for those contemplating buying a property in Spain, particularly on the Costa del Sol where prices have risen by 9.9% in the last year.
Far from feeling that you have “missed the boat”, these increases from a study by Idealista show the strength of the property market in Spain’s tourist hotspots. They also indicate a high demand for luxury properties which is driving closing prices higher. As well as being a solid investment in a rising market, properties that cost more to purchase will similarly command higher rental income.
While average house prices in Spain’s Costa del Sol topped the price increases, other less in-demand areas of Spain saw prices drop. These include the Cantabrian coasts in northern Spain including Marina Lucense (down 6.5%), Costa of Biscay (down 0.7%) and Costa Verde in Asturias (down 0.16%).
Along with Andalucía, other areas that are basking in a rising market are the Barcelona/Maresme Coast (up 4.6%), Murcia’s Costa Calida (up 4.1%) and the ever-popular Balearic Islands (up 9.3%).
When it comes to prices per square meter, there is more good news for potential buyers and expats looking for homes in Southeast Spain. Expect to pay just 2,030 euros/m² on the Costa del Sol for a luxury apartment or private villa with pool. Even with the latest property price increases in 2018, that is still a bargain compared to 3,144 euros/m² in the Balearic Islands; 2,972 euros/m² on the Costa Guipuzcoana; 2,368 euros/m² on Costa Maresme/Barcelona and 2,259 euros/m² on the Costa Brava.
Prices like these continue to show the excellent value that properties in Andalucía represent, with excellent amenities, stunning beaches and a sunny climate as well. Buying a property sooner rather than later on the Costa del Sol could see your investment attracting the same excellent growth next year.
From an article written by Idealista News.