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The residential real estate market in Spain is segmented by Type (condominiums, villas, and others), key cities and other urban, suburban and rural markets.
Greater Than 10 %
With an improving economy, Spain’s property market is witnessing an increase in residential sales, steady price growth and more construction activity. The residential market in Spain was in the consolidation phase, however, since 2018 the country is on a recovery phase and attaining a level of stable demand, with increased growth in the intensity of both the number of housing purchases and prices.
The housing demand in Spain increased by 9.3% in 2018, in which around 585,000 transactions were sales transactions, out of which about 10% were new construction units. The country’s housing demand will continue the positive trend, but at a slower pace as slowing economic growth is anticipated for the coming months which may be reflected in the housing market. However, new housing production is likely to continue at relatively moderate levels over the coming years. Assuming this growth rate it is expected that the volume of housing units completed by 2019 could exceed 85,000 units and touch 100,000 units by 2020.
This report aims to provide a detailed analysis of the Spain residential real estate market. It focuses on the market dynamics, technological trends, insights and government initiatives taken in the residential real estate sector. Also, it analyses the key players present in the market and the competitive landscape in the Spain residential real estate market.
|By Key Cities|
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Spain is a popular international destination for visitors, investors and those looking to relocate to the country. It is a safe and stable country with a rich cultural tradition. International interest from buyers both inside and outside of the European Union is increasing. With 12.6% of the real estate transactions and 65,400 purchases, foreigners represent 1 in 8 buyers in Spain.
In 2019, foreigners bought 65,400 properties in Spain while the total number of transactions reached 516,680. The breakdown by nationality shows that British buyers continue to dominate, representing 15.5% of the total number of sales by foreigners in Spain. German buyers ranked at the second position, accounting for 7.5% of the sales and French buyers occupy third place, representing 7.4% of foreign purchases.
In 2018, over 100,000 homes were purchased by overseas buyers, accounting for nearly one-fifth of the total home sales. British buyers continue to make up the largest group of foreign nationals buying a property in Spain. They accounted for 14.8% of purchases in 2018, followed by French and German buyers at 7.9% and 7.6% respectively. Some of the largest growth over the past five years has also come from buyers in Ecuador and Argentina. During the past five years, the number of international buyers has nearly doubled. The introduction of Spain’s golden visa scheme which allows non-EU nationals to obtain residency in Spain if they invest half a million euros or more into real estate and has also brought an increase in international property buyers The scheme has driven more foreign buyers to the Spanish prime markets, particularly from Morocco, China, and Russia.
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The Spanish housing market is witnessing the recovery of new housing units. At the beginning of 2019, there was a rapid growth in sales of new housing units in the country. In January 2019, 9,259 new homes and flats were sold which is one of the highest figures recorded in the country in the last five years and the sales were 11.2% more than in 2018. In the first quarter of 2019, Spanish real estate went up by 4.9% compared to the first quarter of 2018.
In total, 47,645 property units were purchased in January 2019 (40% more than in December 2018). The most noticeable growth was registered in cities like Extremadura, Galicia, and Aragon. One of the most popular housing markets in 2019 was the Costa Blanca which is popular among the British and is also famous for its affordable housing prices.
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The Spain residential real estate market is competitive with the presence of property developers like Neinor Homes, AEDAS Homes, Via Celere and AELCA. The market has also witnessed the entry of new players like Kronos Homes and Q21 Real Estate Market. The growing presence of international funds and foreign capital is increasingly attracting domestic developers to have joint ventures as a way of gaining a foothold in the country and enhance their financial strength and management expertise. Recent examples of these ventures include HIG and Monthisa, Pimco and Lar España and KKR’s partnership with Qubit. The market recovery in Spain's residential real estate is likely to continue which will attract more players to enter the market.
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
4.3 Government Initatives, Regulatory Aspects for Residential Real Estate Sector
4.4 Insights on size of real estate lending and loan to value trends
4.5 Insights on interest rate regime for general economy, and real estate lending
4.6 Insights on rental yields in residential real estate segment
4.7 Insights on captial market penetration and REIT presence in residential real estate
4.8 Insights on affordable housing support provided by government and public-private partnerships
4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
4.10 Market Dynamics
5. MARKET SEGMENTATION
5.1 BY Type
5.2 By Key Cities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.2 Neinor Homes
6.2.3 AEDAS homes
6.2.4 Via Celere
6.2.6 Acciona Inmobiliaria
6.2.9 Q21 Real Estate
6.2.10 Quabit Inmobiliaria
7. FUTURE OF THE MARKET AND ANALYST RECOMMENDATIONS
9. About Us