The Spanish property market in 2019

When talking about the property market in Spain it is important to realise that this is a large country with rather distinct sub-markets. For ease of reference these can broadly be classified into 1) the main urban centres, 2) the towns and rural regions, and 3) the ‘Costas’, as the coastal tourist areas have been known since the 1960s.

Spain was hard-hit by the global financial crisis of 2008, and began recovering in 2013, with the property and construction sectors gradually recuperating as they followed in the tracks of the trailblazing tourism and export sectors, which were among the early dynamos of economic recovery.

Since then the financial and economic situation has improved significantly and the real estate and construction industries have returned to growth – starting first in prime markets such as the Balearic Islands and Marbella, and then expanding to Madrid, Barcelona and the remaining Costas.

Where in the growth cycle are we now?

Given that the main recovery set in around 2013, with the outer lying parts of the country only just recently feeling the benefits of resumed economic growth, it is reasonable to suggest that we are now a little past mid-cycle.

Construction activity is solid, responding to the strong demand for modern homes, financing is strict but growing, and property prices have been increasing steadily, but still represent good value for people from more expensive parts of Northern Europe.

As the supply of new homes begins to catch up with demand, however, and the prognoses for economic growth in the coming year or two have been downgraded somewhat, it seems we are slowly reaching the mature part of the current growth cycle.

The latter was never a mad ‘sellers’ market’ boom, but more of a measured period of sustainable growth, yet now there is also a cautionary note in that – in an ideal scenario – supply should begin to slow down a little and the growth in property values should also be reduced in order to maintain a healthy balance between the various factors that drive the market.

In summary, 2019 is expected to be another solid year for property on the Costa del Sol and Spain, but right now it is above all quality and value for money that are driving the market, so let’s focus on providing just that.

Loraine de Zara is an experienced property professional with many years of first-class service finding her clients the best properties for sale in and around Marbella.
Get in touch if you want a personal, professional hand in finding your ideal home here.