Market Report 2018 - 19 Spain & Andorra

Market Report 2018-19 Spain and Andorra

MARKET REPORT 2018-2019 - SPAIN AND ANDORRA

INDEX 00

06

08

World Economic outlook

Spain’s Economy

10

The Real Estate Sector in Spain

05

Editor’s note

16

Market Trends The Spanish Residential Market

108

Andorra

EDITOR‘S NOTE

Juan-Galo Macià The GDP growth of 2.6% in 2018, even though it was slightly lower than the previous year, reflects the great strength of the Spanish economy in a somewhat unfavourable global economic situation. The sharp rise in the price of oil, the trade war, the minor growth in the euro zone and the return of Turkey, Tunisia, and Egypt to the tourism market have all burdened the economic situation at a global level. In spite of everything, Spain is not on the verge of a new recession and its economic growth is not only slowing down, but it is actually progressing forward.

By 2019, the demand from first-time buyers and an increase in tourists will make a progressive appearance.

The first will focus on apartments with prices between 100,000 and 150,000 euros, and the second in the most popular resorts along the coast (Marbella, Calella de Palafrugell, Port Andratx, etc.). Young buyers will be able to buy their first homes by obtaining 100% mortgages.

This will help them get on the property ladder easier.

In recent months, the housing market has been dominated by investment demand (around 50% of purchases). The lack of deposit necessary for purchasing a home has made demand practically residual, just like what happened to the tourism market.

Prices will increase by around 10%, purchases will go up by approximately 15%, and the major players of the market will be the medium-sized cities (between 300,000 and 1,000,000 inhabitants). In contrast with both, the large cities and Palma, the price recovery has so far been scarce. Last year, in many of these cities, the reduction in prices with respect to 2007 exceeded 25%.

The engines of the market in 2018 have once again been the communities of Madrid, Catalonia and the Balearic

To summarise, it will be a good year as the residential market will continue to expand and medium-sized cities

Islands. However, the real estate recovery had already started to get noticed in almost every municipality in the country and in most of the cities, the rise in property price easily exceeded the inflation rate.

will once again be the main players. These regions have taken over the two largest cities in the country, giving way to stabilisation of prices in Barcelona as well as in the Central Almond of Madrid.

Juan-Galo Macià CEO of Engel & Völkers in Spain, Portugal, and Andorra

4 | Market Report 2018-19 Spain and Andorra

Editor’s note | 5

World Economic Outlook

Consumer price inflation

Real Estate Market

2,5

The current favourable financing conditions are positive for the real estate sector on an international level. One of the occurrences in this market since the economic recovery started is the stabilisation of property prices.

As indicated by the IMF, an increase in this synchronisation has been observed in 40 countries and 44 of the main cities in the developed and emerging markets.

2,0 1,5 1,0 0,5 0,0 -0,5 -1,0 -1,5

Global Growth

2013

Advanced economies

2014

2015

2016

2017

Jul. 2018

Data in %. Source: FMI

Interest Rates GDP Growth

The weakening global expansion and a slowdown of global synchronisation will affect the development of the world’s economy during 2019. The growth will be 3.5%, two tenths less than in the previous years due to the negative effects of tariffs and trade war, the weakening of some emerging markets including China, and the economy slowdown in European countries, such as Italy and Germany. In addition, the rise of oil prices, geopolitical tensions and the worsening trade situation will all weight heavily on the world’s economy.

According to the International Monetary Fund (IMF), the developed markets will experience further deceleration, going from a growth of 2.4% in 2018 to 2% in 2019.

Special mention should be made about the US. Helped by its fiscal stimulus, it will remain above its full potential until 2020. This year the US economy will grow by 2.5% compared to 1.6% in the Eurozone, 1.5% in the United Kingdom and 1.1% in Japan.

The emerging markets will grow by 4.5%, with the Asian countries prospering the most. India and China will experience gross domestic product increases (GDP) of more than 7.5% and 6.2%, respectively. On the other hand, the Latin American companies will cause business tensions due to volatility of raw materials and financing challenges and their economy will grow by less than 3%.

Without inflationary pressures, financing conditions remain at accommodative levels and favour growth, although the central banks of the main economies continue with standardisation of the monetary policy. However, the expectations about the upcoming rate hikes by the weakening of the world economy have been lowered.

8 7 6 5 4 3 2 1 0

2011

Advanced economies

2013

2015

2017

2019

Emerging economies and the developing markets

Source: FMI

The less balanced growth has come with higher oil prices in recent years. Last year, a barrel of Brent oil was more than 85 dollars, the highest price since 2014. After stabilising around 70 dollars, the expected slowdown world-wide, and consequently, due to the lowest demand, it could put downward pressure on prices in the next few months.

Similarly, inflation will continue to be contained, positioning itself around 1.7% in advanced economies. In Latin America, hyperinflation could get worse in Venezuela as a result of the financing of the large fiscal deficits and loss of confidence in the country’s currency.

Last year in the United States the interest rates were set above 2% for the first time in a decade due to the boost in economy - with the lowest level of unemployment since 2000- as well as the expectations of further fiscal stimulus. In Europe, the European Central Bank (ECB) has kept the interest rates at record low at 0% with the possibility of increasing them later than expected given the signs of economic slowdown in countries like Italy and Germany.

The factors mentioned, plus the shortage of supply and the search for profitable investments will result in the prices rising in the coming months, although the increases will be moderate. It should be noted that the normalisation of the monetary policy by central banks, which will entail stricter financing conditions, the impact of trade wars and the slowdown of some large economies, will result in lower demand for property.

Although at the moment there are no risks of new bubbles occurring in the real estate market, the possible increases in interest rates should be treated with caution, especially if the credit growth gets higher than expected.

Property price development by countries Year-on-year change in% during 2018

-20

-15

-5

0

5

10

15

Hong Kong Ireland

In the currency market, the dollar will be maintained at current levels in the first half of the year before weakening in the second half as a consequence of the public

Portugal Holland Croatia Spain Canada

and government deficit and debt generated by the tax laws from the Trump administration and the higher Federal reserves that will cause rate increases in the near future.

Luxembourg Germany New Zealand USA China Australia Denmark Austria

Euro / dollar exchange rate

France India UK

1,24

Belgium Japan

1,22

Italy Brazil

1,20

Russia

1,18

United Arab Emirates

1,16

Peru

1,14

Ukraine

Qatar

Source: Bloomberg

6 | Market Report 2018-19 Spain and Andorra

-10

Source: FMI

World Economic outlook | 7

Spain’s Economy

Financial situation of households

The net wealth of the Spanish households, which includes their net financial wealth plus real estate, remains solid and increased to 551% of GDP in the second quarter of 2018 compared to 543% in December 2017 – based on the latest data available at the closure of this report-.

The Outlook

The Spanish economy will slow down this year, in tune with the main countries of its surroundings, although it will still grow above the European average. Forecasts from national and international organisations point to an increase in national GDP of 2.1% -2.2%, compared to 1.6% planned for the Eurozone. The better economic performance in Spain stems from the positive internal factors, such as the increase in competitiveness, job creation, the deleveraging of the private sector and a healthy financial sector. The deceleration with respect to the economic growth of 2.5% in 2018 responds to the exhaustion of external tailwinds.

Finally, the normalisation of the ECB’s monetary policy and the possible increases in interest rates constitute to yet another economic vulnerability that still has a bulky weight of public and private debt on its shoulder. The annual inflation rate in December will be around 1%-1.2%; a stable rate compared to 1.2% at the end of 2018.

This increase mainly stems from the rising real estate wealth, which stood at 432% of GDP, amounting to more than five trillion euros, although still far from the maximum figure recorded in 2007 (584% of GDP). The financial wealth, which results from deducting the debts of the total financial assets, remained at 1.41 trillion euros, equivalent to 118.9% of GDP. The financial situation of Spanish families. Figures in billions of euros. Net financial wealth Real

estate wealth. Source: Engel & Völkers with data from the Bank of Spain and Inverco.

Along with purchases and appreciation of real estate assets, the lower financial vulnerability of the Spanish families is explained by the debt process. The total gross debt has fallen to 60.8% of GDP since the 85% peak it reached in June 2010. However, in recent months, the statistics have shown a return of high debt, especially due to the rise in consumer loans and, to a lesser extent, mortgages.

The increase in spending above the gross disposable income has caused the savings rate to fall to 5.2% at the end of the third quarter. If this trend continues, it will mean that public debt will continue to increase in the next few months.

The financial situation of Spanish families (Figures in billions of euros) 8

5,2%

7

Annual IPC growth

6 2,5

5 4

2,0

3

of household savings

2

The 2.5% reduction in the growth rate in 2018 responds to the exhaustion of the external economic factors. The main one responsible for this development is the foreign sector, which already reduced its contribution to GDP last year partly because of the slowdown in the tourism industry. The deterioration of prospects for the economic situa-

1,5

1 0

1,0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net financial wealth

0,5

Real estate wealth

Source: Engel & Völkers with data from the Bank of Spain and Inverco

jan feb mar apr may jun jul aug sep oct nov dec

Percentage based on quarterly gross disposable income Source: INE

2018

tion, including the loss of dynamism in some of the main export markets of Spain, such as Italy and the United Kingdom, explains the moderation in exports.

General index. Percentage Source: INE

GDP growth in Spain 5

0

2007

2008

2009

2010

8 | Market Report 2018-19 Spain and Andorra

2011

2012

2013

2014

2015

2016

2017

T4

T3

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

T2

T1

T4

T3

2006

T2

Source: INE

-5

2018

Spain’s Economy | 9

Real Estate Sector in Spain

Price Development

Current situation

The real estate sector has accumulated five consecutive years of growth after the property bubble burst. The higher consumer trust, good financing conditions and the search for profitable investments in an environment of low interest rates result in a market in which both the purchase and sale prices can progress forward.

The recovery, which will continue throughout 2019, is occurring in a standard manner but is still far from the historical maximums experienced during the full boom.

All this lowers the risk of a new housing bubble in the short and medium term.

The residential property market is still the engine of the sector. With the return of new-builds, the solid demand for resale properties and the growing weight of rentals means new price increases and higher demand in the coming months.

House prices will maintain a bullish path when taking valuations into account as well as sold properties. According to the Ministry of Development, the average price per square metre for private homes stood at 1,589.5 euros in the third quarter of 2018, 3.2% more than a year earlier.

This data represents the fourteenth quarter consecutive rise after 26 quarters of falls started at the end of 2008.

From the third quarter of 2014, property prices regained strength by 9.2%, although they are still 24.4% lower than the historical maximum recorded in 2008.

Financing

The normalisation of the ECB’s monetary policy goes to show that mortgages will become more expensive in the upcoming months, although the conditions will not be restrictive and interest rates will remain at accommodative levels. The Euribor, the reference rate to which most of the mortgages in Spain are linked to, has already started to reflect this trend.

The Euribor rate closed at -0.129% in 2018, after accumulating nine consecutive monthly advances. Although the rate is currently negative, the rise has meant that last year the mortgage rates went up for the first time since 2014, both in the case of semi-annual and annual reviews.

For example, the monthly payment amount for a mortgage of 120,000 euros for a term of 20 years and a rate of 1% would be changed to 544.99 euros based on the December Euribor rate. This equals to 3.2 euros more per month than a year before.

The main risks for the sector would be tougher lending conditions once the ECB starts to raise interest rates in the second half of the year.

The property prices in each autonomous community have increased by 11%, with Madrid (8.3%), La Rioja (6%), the Balearic Islands (5.2%) and Catalonia (4.8%) in the lead. On the contrary, in seven of these districts, the property prices have fallen. These include Cantabria (-2.7%), Galicia (-1.7%) and the Basque Country (-1.2%).

For municipalities with more than 25,000 inhabitants, the highest prices for private homes can be seen in San Sebastian, Sant Cugat del Vallès, Ibiza, Barcelona, Santa Eulalia del Río, Pozuelo de Alarcón and Madrid, all for above 3,000 euros / sqm.

According to the National Institute of Statistics (INE), which refers to house purchases, the Price Index of Housing (IPV) stood at 7.2% in the third quarter of 2018. When taking into account the type of property concerned, the annual variation for new-builds was 6.1% and 7.3% for resale. By autonomous Community, Madrid (10.9%), Catalonia (9.1%) and the Balearic Islands (7%) have recorded higher increases.

Euro/dollar exchange rate

IPV Annual Rate General index, new-builds and resale (%)

8 7 6 5 4

T1

T2

T3

T4

T1

2017 General Index

T2

T3

2018

New builds

Resale homes

Data for the end of the third quarter of 2018. Source: INE

The 10 most expensive municipalities in Spain (Figures in euros/sqm) San Sebastián

3.356,1

Sant Cugat del Vallès

3.328,4

Ibiza

3.318,3

Barcelona

3.300,1

Santa Eulalia del Río

3.188,5

Pozuelo de Alarcón

3.053,1

Madrid

3.016,0

Getxo

2.928,5

Castelldefels

2.912,6

Majadahonda

2.912,2

Data for the end of the third quarter of 2018. Source: Ministry of Development

Average price of private housing per square metre (€/sqm)

0,050

2.200

0,000

2.000

-0,050 -0,100

1.800

-0,150

1.600

-0,200

1.400

-0,250 may 2016

sep

jan

may 2017

Source: Engel & Völkers with data from the ECB

10 | Market Report 2018-19 Spain and Andorra

sep

jan

may 2018

sep

1.200 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4

jan

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Data for the end of the third quarter of 2018. Source: Ministry of Development.

The Real Estate Sector in Spain | 11

Property purchases by municipality

Mortgages and purchases Andalucía

Total National

Cataluña Comunitat Valenciana

2014 347.170 2015 383.107 2016 436.574 2017 509.847 2018* 410.883

Comunidad de Madrid

The high number of mortgages granted to home buyers is another sign of the property market’s good state of health. Between January and November 2018, a total of 324,253 mortgages were approved, which is 12% more than in the same period of 2017. There are already five consecutive years with increases in mortgage approvals and two in which more than 300,000 are taken into account. However, these figures are far from the million or more mortgage approvals that were recorded back in 2006 and 2007.

Canarias Castilla y León Castilla-La Mancha País Vasco Galicia Región de Murcia Islas Baleares Aragón Principado de Asturias Extremadura Cantabria C. Foral de Navarra La Rioja Ceuta y Melilla

60% of mortgages are variable rate and 40% are fixed rate. This means four out of 10 mortgages are fixed-rate, compared to one in ten back in 2005, due to the interest rate increases that are expected in the coming months.

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

Data at the end of the third quarter. Source: Ministry of Development

Registered property sales based on the nationality of the buyer

Number of approved mortgages

Year 2018

1.600.000 Nationalities

1.400.000

%

% foreigners

1.200.000

United Kingdom

2,0

15,5

1.000.000

Germany

1,0

7,5

France

0,9

7,4

Belgium

0,8

6,3

Sweden

0,7

5,8

Romania

0,7

5,4

Italy

0,7

5,4

Morocco

0,6

4,8

China

0,5

3,9

Russia

0,4

2,9

Netherlands

0,3

2,7

Norway

0,3

2,0

Ukraine

0,2

1,6

Poland

0,2

1,5

Algeria

0,2

1,3

Ireland

0,2

1,3

Bulgaria

0,1

1,1

Switzerland

0,1

1,0

Denmark

0,1

0,9

800.000 600.000 400.000 200.000 0 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018*

*Data up to November. Source: INE

The property sales figures are also positive, which even exceed the number of mortgages given to borrowers.

According to the latest data from the Ministry of Development, between January and September of 2018, there were a total of 410,883 homes sold, which represents an increase of 11% compared to a year earlier. Andalusia, Catalonia, Valencia and Madrid are the autonomous communities with the most sold properties.

According to the INE, between January and November of 2018 there were 481,220 property sales, 10.6% higher than the same period in 2017. By 2019, the forecasts point to exceeding the half a million sold properties, as per what happened last year.

Rest

2,7

21,6

Foreigners

12,6%

100,00%

Nationality

87,4%

TOTAL

100,00%

Source: Spanish Association of Registrars

12 | Market Report 2018-19 Spain and Andorra

The Real Estate Sector in Spain | 13

Rentals

Property ownership in Spain Figures in %

According to statistics, the rental properties continue gaining adepts in Spain and have already reached a total of 16.9%. On the other hand, the percentage of owned homes is below the 77% minimum of the historical figures, which began in 2004 and reached the maximum in 2005 with 80.5%. Despite this development, the records still differ from Europe, where on average, 69% of households own their property.

Asturias

Cantabria

País Vasco

Galicia

Navarra La Rioja Castilla y León

Cataluña Aragón

The rental boom responds to a change in preferences by the housing trend regime as more people opt for investing in a buy-to-let property. The potential profits from a buy-to-let property range from 5% and 8% annually, especially for properties situated in large cities and on the coast.

Madrid

Valencia

Castilla-La Mancha Extremadura

Balearic Islands

Murcia

In the coming months, the measures related to the rental market that are negotiated within the framework of General State Budget could result in an element of uncertainty.

Andalucía

Canary Islands

Property ownership in Spain Figures in %

67,3 % - 71,9 %

81

72,0 % - 77,4 %

77,5 % - 80,6 %

80,7 % - 83,3 %

83,4 % - 85,0 %

80 79 78 77 76 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: INE

14 | Market Report 2018-19 Spain and Andorra

The Real Estate Sector in Spain | 15

The Spanish Residential Market

18

THE MADRID COMMUNITY Madrid Surrounding area

52

CATALONIA Barcelona Surrounding area Gerona - Costa Brava Tarragona Catalan Pyrenees - Gerona and Lérida

62

THE VALENCIAN COMMUNITY Valencia Alicante - Costa Blanca

72

ANDALUSIA Costa del Sol

78

NORTHWEST REGION OF SPAIN Galicia Cantabria Asturias Castile and León

86

NORTHEAST REGION OF SPAIN Basque Country Navarre

94

CANARY ISLANDS Tenerife

96

BALEARIC ISLANDS Majorca Menorca Ibiza

100

16 | Market Report 2018-19 Spain and Andorra

NEW-BUILDS

Market Trends. The Spanish Residential Market | 17

Districts of the city of Madrid

Community of Madrid

Fuencarral-El Pardo

Madrid

Hortaleza

3.165.541

36.442 EUR

28.876 €

3.844 €/m²

17%

Population or number of inhabitants

Average Gross Income

Disposable Income

Average Price 2018

Interannual Variation

Barajas Tetuán Chamartín Moncloa

Property price moderation has arrived to the capital. The year 2018 has meant the recovery of the real estate sector in Spain, surpassing the 500,000 property sales. This is a figure that has not been achieved since 2008, according to the 2018 Real Estate Registry Statistics published by the Spanish Property and Commercial Registrars. The estate agencies that specialise in selling properties have registered more than 80% of sales in 2018, more than they achieved in 2007 and 14% more in 2017. This situation has also occurred in the city of Madrid. The capital is also the second municipality of the country that has registered a greater rise in the prices of properties.

Specifically, last year the cost of homes in Madrid increased by 17%, a rise only exceeded by Las Palmas de Gran Canaria (+ 21.1%). Although the price per square metre rose by an average of 600 euros in the capital, during the last few months of 2018 the

18 | Market Report 2018-19 Spain and Andorra

Chamberí

increase in house prices slowed down. The forecasts by the Registrars point to a higher growth in demand in 2019 motivated by a reduction in the upward trend in prices, which will go from growing at a rate of two digits to a single digit.

Salamanca Centro

Retiro

Moratalaz

Arganzuela Vicálvaro

Puente de Vallecas

Latina

By neighbourhoods, the central districts experienced a moderate rise in prices last year. At the same time, the price of real estate in the suburbs of the south of the capital has increased, although they are still three times less than those in the districts of Centro, Salamanca and Chamberí, where the price per square metre had already exceeded 4,000 euros in the beginning of 2018, according to data from the City council of Madrid. On the other hand, the Madrid municipalities of Pozuelo de Alarcón and Majadahonda are still two of the Spanish cities with the most expensive properties, with an average price of 3,000 euros per square metre.

San Blas Ciudad Lineal

Carabanchel

Usera

Villa de Vallecas Villaverde

Prices in euros/sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

Salamanca

6.470

Tetuán

3.935

Moratalaz

2.459

Retiro

5.349

Arganzuela

3.900

Villa de Vallecas

2.297

Centro

5.170

Barajas

3.800

Vicálvaro

2.189

Chamartín

4.589

Moncloa - Aravaca

3.643

Carabanchel

2.100

Chamberí

4.505

Fuencarral - El Pardo

3.507

Usera

1.900

Ciudad Lineal

4.190

San Blas

3.090

Puente de Vallecas

1.743

Hortaleza

4.170

Latina

2.650

Market Trends. The Spanish Residential Market | 19

District by District

Centro and Arganzuela

Throughout 2018, the Centro district has been subject to multiple urban modifications that have created an expectation of growth in purchases and prices. The development of the Canalejas complex together with the pedestrianisation of Gran Vía and the creation of Madrid Central have been the determining factors for a price increase that will not continue in 2019.

Last year, investor interest caused a significant reduction in the average time it took for a property to sell, from 160 to 120 days. It is worth mentioning that Engel & Völkers experienced a record property sale of just one hour through Facetime.

The New Brooklyn of Madrid

Retiro

Salamanca

The excellent location of this district makes it the top chosen place by the upper-class Spanish families who buy their first homes. In fact, they make up 90% of purchases. The remaining 10% of purchases carried out in Retiro last year were done by foreign customers.

If in 2017 the Latin Americans, mainly Mexicans, Colombians and Venezuelans, carried out these purchases, in 2018 there was a growing interest from other nationalities such as the Filipinos or Americans, as well as some operations carried out by Chinese, Portuguese and Croats.

Synonymous with exclusivity, this is the most emblematic district of Madrid and it’s where the most prime neighbourhoods of the capital are located. In Recoletos and Castellana you can find elegant homes in aristocratic buildings from the nineteenth century with newbuild properties that are highly appreciated by international customers.

The high demand from the young buyers in the area closest to Matadero has meant this district can be called the ‘New Brooklyn’. The excellent road connections and provision of services in Puerta del Angel to Madrid Río is highly valued by families and young couples who look for two or three bedroom houses under 300,000 euros along with 80 sqm apartments at a price of around 3,500 euros / sqm.

The most in demand properties in these areas are large-size homes of between 200 sqm and 400 sqm, with prices that can exceed 10,000 euros / sqm. Nearby are other districts, such as Goya and Lista, which throughout 2018 have registered a rebound in prices by reaching 9,000 euros / sqm.

The main buyers for this type of property continues to be the upper-middle-class Spanish families, together with a new type of buyer that has emerged in recent years with a more senior profile looking for a new home.

In fact, the age range has risen significantly in the last decade to account for 50% of purchases among the customers who are between 36 and 60 years of age.

Property prices in Centro and Arganzuela (Figures in euros / sqm)

The profile of the buyer in this area is mostly national, many of them expats who want to return to Madrid to live in the centre. The Spanish customer accounts for 70% of purchases compared to 30% of foreigners led by Venezuelans, Colombians, Belgians, Italians, British, Americans and Israelis, although there is a significant interest from the Lebanese, Russians, Norwegians and customers from Singapore.

The residential area closest to Legazpi is the green zone par excellence of the district. Characterised by newly built houses with communal services-swimming pool and gardens in high-quality private estates-, this area is called Metales and is one of the most expensive in Arganzuela, reaching prices of €4,600 / sqm for three-bedroom homes of around 150 sqm.

Maximum

Average

Palacio

4.100

5.900

5.000

Embajadores

3.200

5.620

4.410

Cortes

4.700

6.300

5.500

Justicia

5.100

7.100

6.100

Universidad

4.500

5.700

5.100

Sol

4.200

5.600

4.900

Imperial

3.500

4.600

4.050

Acacias

3.900

4.300

4.100

Property prices in Retiro

Chopera

3.100

3.900

3.500

(Figures in euros / sqm)

Legazpi

4.000

4.900

4.450

Delicias Palos de Moguer Madrid Río

20 | Market Report 2018-19 Spain and Andorra

The stately neighbourhood of Jerónimos is still the most in demand by foreigners who for work transfer reasons or as a second residence spend long periods of time in Spain and want to live near Retiro Park and be surrounded by the most representative monuments of

Minimum

3.900 3.800 2.300

4.000 4.600 3.300

the capital. It must be said that Alfonso XII is the most expensive street in the district with an average price of 5,876 euros / sqm.

Minimum

Maximum

Average

Jerónimos

4.500

10.500

7.000

Ibiza

3.853

6.729

5.140

Niño Jesús

4.178

4.950

4.540

Adelfas

4.023

4.850

4.437

Pacifico

2.980

4.500

3.731

3.950 4.200 2.800

Serrano, Velázquez, Alcalá and Recoletos are the most expensive streets in the district with average prices that exceed 7,000 euros / sqm compared to an average price of 6,800 euros / sqm in 2017.

Property prices in Salamanca (Figures in euros / sqm)

Minimum

Maximum

Average

Recoletos

4.934

11.029

7.060

Castellana

4.125

10.200

6.500

Goya

3.959

9.355

5.876

Lista

3.478

9.230

5.806

Guindalera

2.900

5.638

4.730

Fuente del Berro

2.712

8.000

4.697

Market Trends. The Spanish Residential Market | 21

Chamartín and Tetuán

These are Madrid’s financial districts chosen by middle-aged couples and professionals who appreciate living in some of the most coveted residential areas of the city centre, such as El Viso and Castilla.

Orense, Capitán Haya, General Perón and Edgar Neville are the streets with the highest prices in the district, around 4,600 euro / sqm.

Both of these neighbourhoods boast the most varied international client profile compared to the significant number of national buyers in other districts. The most common foreigners are Venezuelans and Jordanians who prefer large-size homes of around 300 sqm with swimming pool, garages and storage room, and the Chinese whose objective is to obtain the Golden Visa by purchasing apartments of up to 200 sqm within proximity to Padre Damián School.

Property prices in Chamartín and Tetuán

Paseo de la Castellana, Serrano, and Doctor Arce are the most expensive streets in Chamartín, reaching an average price of 7,500 euros / sqm.

Unlike the investors who have shied away, 98% of the purchases are carried out by the knowledgeable and informed Spaniards in the area looking for two-bedroom apartments, mainly in Prosperidad, with which they can make profits by renting them out.

In the adjacent district of Tetuán, the Cuatro Caminos district mainly consists of national buyers, where 100% of the sales managed by Engel & Völkers have been carried out by Spanish clients. The most in demand type of property is divided into flats with:

(Figures in euros / sqm)

Minimum

Maximum

Average

El Viso

3.435

7.692

5.703

Nueva España

3.675

6.035

5.200

Hispanoamérica

3.604

5.938

5.000

Prosperidad

2.500

3.250

4.344

Castilla

3.049

5.397

4.313

Ciudad Jardín

3.780

4.320

4.321

Almenara

2.742

3.817

3.173

Castillejos

3.223

4.250

3.972

Cuatro Caminos

3.114

4.439

4.115

Valdeacederas

2.657

4.318

3.054

Bellas Vistas

2.581

3.654

3.354

Chamberí

Fuencarral

The most authentic district of Madrid can boast of having the greatest architectural heritage where the 19th and 20th century aristocracy built their private villas. The palaces that used to be their residences have now been converted into homes that are highly desirable by the international clients, who account for 15% of purchases compared to 85% nationals.

This district on the northwest of Madrid combines several highly-sought residential areas by the upper-middle class Spanish families who work in companies with their headquarters located nearby. They mainly look for flats, especially top-floor ones, single-storey homes and townhouses. The detached homes in Mirasierra are also in great demand, located in plots of between 700 and 1,500 sqm and priced between 1.1 and 2 million euros.

The profile of the buyer in this district varies greatly depending on the neighbourhoods, and ranges from national upper-middle class families interested in residing in Almagro or Ríos Rosas, to foreign citizens seeking a home for work transfer or as an investment. In the latter case, Gaztambide and Vallehermoso, due to their proximity to the University City, are the most sought after areas for buying and renting to students.

International buyers include Latin Americans who are looking for high-rise homes with views - preferably penthouses – and square footage of between 180 and 250 sqm - in Trafalgar, Almagro and Ríos Rosas. The Venezuelans and Mexicans are the main buyers, followed by Filipinos, Italians, French and Portuguese.

The traditional buyer in Mirasierra has joined many foreigners in recent years, mainly Germans who live in Madrid and who choose this area since the German School moved to Montecarmelo, with which there is a direct connection. This less than 20-year-old neighbourhood, in addition to the German community, attracts younger buyers with small children, who are looking for a quiet residential area with lots of parks.

Mirasierra and Montecarmelo are precisely the areas where the most expensive streets are located. With maximum prices of around 5,000 euros / sqm, La Masó and Nuria streets have become the most exclusive addresses next to Monasterio del Paular and Avenida de Montecarmelo.

The average sale price in Chamberí exceeds 4,000 euros / sqm in all the neighbourhoods of the district and for 2019, a 10% increase is expected. Fortuny and Zurbano are the most sought-after and expensive streets of the district, reaching an average price of 8,000 euros / sqm.

· Two bedrooms of up to 100 sqm for prices between 400,000 and 500,000 euros

Property prices in Chamberí (Figures in euros / sqm)

· Three bedrooms with parking and footage of between 100 and 150 sqm with prices of up to 800,000 euros · Four bedrooms or more, up to 200 sqm with prices between 800,000 euros and 1.2 million euros.

22 | Market Report 2018-19 Spain and Andorra

Minimum

Maximum

Average

Almagro

4.200

7.432

6.175

RiosRosas

4.416

7.134

5.048

Trafalgar

3.885

6.079

5.128

Vallehermoso

3.515

5.280

4.373

Arapiles

2.989

5.450

4.835

Gaztambide

2.443

5.350

4.664

Market Trends. The Spanish Residential Market | 23

These are contrasting prices compared to those neighbourhoods in other districts, such as Peñagrande, which, after a thorough renovation, still offers some detached homes and townhouses at highly attractive prices within the perimeter of the M-40.

Property prices in Fuencarral and Montecarmelo (Figures in euros / sqm) Minimum

Maximum

Average

Mirasierra

2.650

4.259

3.384

Montecarmelo

4.192

4.606

4.405

Peñagrande

2.261

4.500

3.265

Fuentelarreina

2.727

3.292

3.091

Arroyofresno

2.261

4.579

La Paz

2.632

4.663

2.900 3.549

Moncloa - Aravaca

Ciudad Lineal

Hortaleza

EThe client profile of this district is very varied and mainly national. It ranges from upper-middle class families with children at school or university age, middle-aged couples who have lived in the area of Pozuelo-Majadahonda and who are interested in returning to Madrid and finally young couples who have always lived in the area.

With a highly stable and solid demand in all the neighbourhoods that make up this district, Ciudad Lineal can be divided into two very different areas, according to property type and buyer profile.

Hortaleza is the district of Madrid where there is a greater contrast both in the types of houses it offers and in the profile of the investor. The price ranges from a minimum of 1,400 euros / sqm that can be found in Canillas to 9,000 euros / sqm that is paid in La Piovera.

Argüelles remains the most premium area in Moncloa, with Pintor Rosales, Paseo de Moret streets and a section of Ferraz overlooking the temple of Debot as the most exclusive neighbourhood. Both investors and individual customers who choose these areas tend to look for spacious apartments in stately buildings.

In Aravaca, Valdemarín Avenue continues to be the most exclusive area, along with El Plantio and El Barrial, considered to be some of the best areas with luxury properties.

The profile of the buyers consists of people with a medium or high purchasing power, who are usually young families with two or three children. The most in demand types of properties that determine the prices in the area are penthouses and duplexes. Similarly, there are also in-demand properties in Puerta de Hierro, an emblematic urbanisation of the district that has been around for more than 40 years, which houses several embassies as well as the private residences of many ambassadors and diplomatic personnel. It is the place chosen by many celebrities who seek absolute privacy in an environment very close to Monte de El Pardo and the centre of the city.

Property prices in Moncloa and Aravaca (Figures in euros / sqm)

24 | Market Report 2018-19 Spain and Andorra

Minimum

Maximum

Average

Argüelles

3.801

4.281

4.806

Puerta de Hierro

1.751

3.785

2.900

Ciudad Universitaria

3.831

3.840

3.849

Valdemarín

1.802

7.917

4.301

Aravaca

1.785

7.058

3.867

El Plantío – La Florida

1.124

7.886

2.748

In the first one, formed by the northern neighbourhoods of (Costillares, Atalaya, Colina, San Juan Bautista and Pascual) close to Chamartín, the most in-demand homes are 3-4 bedroom apartments with communal facilities, such as swimming pool and garden within a wide range of prices between 2,000 and 6,000 euros / sqm.

In the second one, formed by the neighbourhoods located further south (Concepción, Quintana, Ventas and Pueblo Nuevo), prices fall to minimums of 1,000-1,200 euros / sqm in Pueblo Nuevo and Concepción.

Despite these price differences, the most expensive area stands out near Arturo Soria, which is undoubtedly the main artery of the district, where the most in-demand properties are in fully serviced communities and well-connected with the city centre.

The latter includes the prestigious Conde Orgaz Park, where the most exclusive communities of detached homes coexist next to semi-detached houses and more affordable properties in the park that have a lower average price of 4,400 euros / sqm. Along with this area, the new-builds in Palomas also stand out.

In the rest of the district’s neighbourhoods, the oldest buildings are replaced by larger and more modern ones, including those located in Gran Vía de Hortaleza, with all the comforts one would need as well as some spectacular penthouses.

Property prices in Hortaleza (Figures in euros / sqm) Minimum

Maximum

Average

Apostol Santiago

1.700

5.000

3.100

Pinar del Rey

1.500

5.000

3.100

Canillas

1.400

6.000

3.500

Piovera/Conde Orgaz

2.000

9.000

4.400

Palomas

1.800

7.700

3.600

Property prices in Ciudad Lineal (Figures in euros / sqm)

Minimum

Maximum

Average

Costillares

2.000

5.700

4.000

Atalaya

2.800

5.500

4.450

Colina

2.300

7.000

4.500

San Juan Bautista

2.500

5.700

4.100

San Pascual

2.200

6.000

3.800

Concepción

1.200

5.600

3.300

Quintana

1.600

5.000

3.000

Ventas

1.700

4.500

2.800

Pueblo Nuevo

1.000

4.600

2.600

Market Trends. The Spanish Residential Market | 25

Sanchinarro, Las Tablas and Valdebebas

Barajas - San Blas

Rentals

Located in the north of Madrid, these are very recent neighborhoods, whose construction began at the beginning of 2000s. They are mainly residential and family areas, where the headquarters of important Spanish companies, such as Telefónica, BBVA, and the international firms, Renault and BMW, are located.

These districts located close to the Madrid airport are a good option for those middle-class Spanish families looking for homes in residential buildings near Madrid and equipped with a pool and communal areas.

As these are very recent residential neighbourhoods with mainly young families who have average purchasing power, the demand is mainly focused on two to three bedroom properties. In fact, there are few who have four bedrooms despite the fact that there is also demand for these homes.

· Composed by Alameda de Osuna, Campo de las Naciones-Corralejo has higher property prices, with an average price of 4,500 euros / sqm in Paseo de la Alameda.

The most in-demand area is Sanchinarro, where El Corte Inglés and Sanitas La Moraleja Hospital are located, and Las Tablas, with BBVA and Telefónica offices. Valdebebas does not currently have as much demand due to lack of public transport and amenities, such as schools, restaurants, pharmacies. However, it is a growing neighbourhood where the new-builds and off-plan property purchases prevail . There are two buyer profiles. On the one hand, the Spanish investors who buy one-bedroom homes; and on the other, families who look for a minimum of 2 bedrooms to rent as they want to work for companies that are based in the area.

The most popular streets in Sanchinarro are Vicente Blasco Ibañez and Americo Castro, while Cebreiros and Luis Martínez Feduchi are the most expensive in Las Tablas and Valdebebas, respectively.

The wide range of properties is focused on two main areas:

· Las Rosas and El Salvador are highly sought by families who are looking for their first home and are looking for new houses with 2-3 bedrooms with all the facilities. Niza Avenue and Tampico Street are considered as the most expensive streets of the two neighbourhoods.

Renovated flats of around 100-120 sqm, with two bedrooms and two bathrooms, well located and with a price between 1,400-1,600 euros per month; although this is the description of the star property for rent in Madrid, the type of property most in demand varies greatly according to the areas. While in the downtown neighbourhoods of the capital, customers look for two-bedroom apartments, renovated and unfurnished, leaving the central almond surrounded by the M-30, we can find more demands for homes, both detached and flats, including garden, swimming pool and sports facilities.

But the highlight of 2018 has been the so-called ‘Airbnb phenomenon’, which has boosted the house prices, especially the ones located in very central neighbourhoods such as Sol. The strong tourism in these areas has resulted in 90% of the property sales to be carried out by investors who want to use the property for short-term holiday lets.

By price, the rental demand focuses on properties below 2,000 euros a month with good location or, at least, well connected with public transport, with a wide range of shops, amenities, and parks. During the past year, Engel & Völkers has seen how the average time a house stays on its portfolio varies depending on its price range. Those that were advertised for less than 2,000 euros a month were rented in less than a month.

The price shoots up in the districts of Salamanca, Centro and Chamberí, where they reach 30 euros / sqm. In these areas, the streets of Serrano and the Salesas and Olavide plazas boast the highest rental prices.

The rental portion in Madrid is shared between 59% Spaniards and 41% foreigners. With regards to the foreign tenants, North Americans account for 7%, followed by the French (6.3%) and Venezuelans (5%).

Rental prices in Madrid (Figures in euros / sqm)

Property prices in Barajas and San Blas Minimum

Maximum

Average

Centro

8,48

30,00

20,70

(Figures in euros / sqm)

Minimum

Maximum

Average

Salamanca

8,47

29,17

19,65

Alameda de Osuna

1.900

5.000

3.300

Chamartín

9,00

29,41

17,53

Campo de las Naciones/Corralejo

Chamberí

7,47

28,95

19,44

1.550

5.600

3.300

Moncloa

4,32

22,43

14,18

San Blas/Rosas

2.100

4.250

3.000

Hortaleza

5,81

18,57

12,62

San Blas/El Salvador

2.400

5.300

3.500

Tetuán

8,15

19,14

14,80

Retiro

10,80

26,32

16,72

Noroeste

3,60

19,83

10,75

Norte

3,40

9,34

7,34

Property prices in Sanchinarro, Las Tablas and Valdebebas (Figures in euros / sqm)

Minimum

Maximum

Average

Sanchinarro

2.354

4.678

3.795

Las Tablas

3.888

3.910

3.899

Valdebebas

4.300

4.429

4.365

26 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 27

Madrid’s Surroundings Madrid’s Surroundings

Pozuelo - Boadilla del Monte

Algete (Zona Norte)

San Sebastián de los Reyes (Zona Norte) Las Rozas

Cobeña (Zona Norte)

La Moraleja Paracuellos (Zona Norte)

Majadahonda

Boadilla del Monte

According to the Urban Indicators for municipalities of more than 20,000 inhabitants published by the INE in 2018, Pozuelo de Alarcón and Boadilla del Monte are, together with Las Rozas de Madrid, the municipalities with the highest average annual income per capita in Spain.

Madrid Pozuelo

The first one forms an urban continuum with Madrid through Aravaca, with which it appears to form a single nucleus, while the other two are further away from the capital. Pozuelo de Alarcón can be divided into two different parts: the Station, next to the train station, and the town, the true centre of the municipality and where most of the services are located in. Both are surrounded by developments such as Somosaguas, Montealina, Montegancedo and Monteclaro as well as important business parks, such as Ática and La Finca.

These large developments of detached buildings on the outskirts, as well as Avenida de Europa, characterised by blocks of properties on up to five floors, are considered as the areas inhabited by the population with the greatest purchasing power in the municipality.

The offer in the northwest area of Madrid consists of high-quality housing and luxury developments, with high security features and excellent services. These can be villas with more than 200 sqm and four bedrooms, with garden and swimming pool, with prices around one million euros.

The average price of housing in Pozuelo de Alarcón stood at 3,208 euros / sqm in 2018, while in Boadilla del Monte it was at 2,349 euros / sqm and Villaviciosa de Odón, at 1,837 euros / sqm.

Pozuelo - Boadilla del Monte Las Rozas - Majadahonda La Moraleja Zona Norte

28 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 29

Las Rozas - Majadahonda

Property prices in Pozuelo de Alarcón

Property prices in Boadilla del Monte

(Figures in euros / sqm)

(Figures in euros / sqm)

Minimum

Maximum

Average

Minimum

Maximum

Average

Montealina

1.414

4.818

2.688

Parque Boadilla

827

2.643

1.737

Prado Largo

1.565

5.000

2.797

Las Lomas

829

8.000

2.235

La Cabaña

1.574

4.091

2.422

Bonanza

1.140

3.371

2.127

Monteclaro-Urb. Las Encinas

1.792

6.133

2.949

Valdecabaña

1.179

3.477

2.357

La Finca

2.340

7.600

3.560

Valdepastores-Las Encinas

773

4.118

2.684

Prado De Somosaguas

1.986

4.530

3.538

Viñas Viejas

1.454

3.833

2.359

Somosaguas

1.219

6.203

2.996

El Olivar

915

3.438

2.003

Zona Norte

2.185

7.091

3.308

Sector B

1.274

4.000

2.612

Zona Estacion

1.689

8.476

3.194

Sector S

1.592

3.890

2.676

Zona Pueblo

1.511

5.467

2.998

Centro

1.708

4.178

2.976

Zona Avenida De Europa

1.307

6.071

3.864

Monteprincipe

1.072

4.172

2.178

The profile of the client consists of up to 99% of purchases coming from Spanish families with high purchasing power who search for detached homes in safe and secure neighbourhoods and close to international schools. The remaining 1% of buyers are foreigners led

by South Americans (Venezuelans, Argentines, Mexicans and Colombians), followed by Europeans and North Americans, with some purchases carried out in 2018 by clients from Lebanon and Thailand.

The third municipality with the highest per capita income in Spain consists of a similar type of housing and a buyer profile to the previous two. The highlight of 2018 was the price increase of 18%, which leaves no margin for the increase for 2019 and could even drop in some areas due to the existing huge supply.

In Las Rozas and Majadahonda the demand is focused on penthouses and apartments in the centre, mainly by Spanish families, and in apartments of more than 200 sqm and large detached villas sought by foreigners or nationals who want to move away from the city centre and look for more space . Here, unlike other areas of northwest Madrid, international customers account for 30% of the purchases led by South Americans, who prefer detached houses with plots of around 2,000 sqm, and Asians looking for villas of more than 500 sqm or large apartments with 24 hour security.

Property prices in Villaviciosa de Odón Property prices in Las Rozas

(Figures in euros / sqm)

Maximum

Average

El Bosque

824

3.871

1.787

Centro

497

4.808

2.388

Castillo - Campodon

612

3.667

1.623

Minimum

Maximum

Average

Club de Golf

850

3.500

1.700

Molino de la Hoz

975

3.375

1.800

Punta Galea

925

4.100

2.350

1.200

4.150

2.850

675

5.000

2.650

1.650

4.300

2.500

945

2.900

1.900

Centro La Marazuela El Burgo Monte Rozas

Property prices in Majadahonda-Villafranca del Castillo (Figures in euros / sqm)

Minimum

Maximum

Average

Monte del Pilar

1.650

5.500

3.400

Centro

1.700

4.200

2.997

Golf

1.882

4.400

3.400

Norte

1.450

4.200

2.600

Carretera del Plantío

1.350

4.200

2.500

750

3.400

1.850

Villafranca del Castillo

(Figures in euros / sqm) Minimum

Throughout 2018, there was a reduction in the average time it took to sell a property in these areas. While in Las Rozas, the large-size houses exceeding one million euros tend to spend less time being on the market, from 12 months to 8-9 months. In 2017, the houses in Majadahonda with prices below 500,000 euros went from an average of six months on the market to just four months.

Majadahonda is one of the most popular locations in the northwestern area of the capital, where the Monte del Pilar area stands out, consisting of the most modern houses and the best developments, and the Golf area, which is highly sought by health care professionals due to the its proximity to the Puerta de Hierro hospital.

30 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 31

La Moraleja

Located in the north of the metropolitan area of Madrid, the area is subdivided into three urbanisations: La Moraleja, El Soto de la Moraleja and Encinar de los Reyes. Close to Arroyo de la Vega, where a large number of multinationals have established their headquarters, the most popular properties are flats, especially penthouses and ground floor properties, between 150 and 250 sqm, although there is a growing interest for detached homes in private estates with communal areas, which are very scarce in La Moraleja.

The client profile is someone who looks for a multicultural environment to live near some of the best private and international educational centres in Spain just 15 minutes from the centre of Madrid. These are the determining factors for many expats who choose La Moraleja to live in, initially to rent a property before buying at later stage. Around 19% of the owners are foreigners and in recent years there has been an increase in Latin American clients, especially Venezuelans and Mexi-

32 | Market Report 2018-19 Spain and Andorra

Zona Norte

cans. In 2018, Engel & Völkers sold a house in La Moraleja to a foreign client worth more than 10 million euros, a record figure rarely reached in recent years.

Below this price level, around six million euros is the average asking price in two emblematic streets: Camino Sur and Paseo Marquesa Viuda de Aldama.

The detached house on a large plot -in some cases it can reach up to one hectare of land- is the typical property type on both of these streets.

Property prices in La Moraleja (Figures in euros / sqm)

Minimum

Maximum

Average

La Moraleja

4.368

5.127

4.748

Soto de La Moraleja

2.820

4.545

3.325

El Encinar de los Reyes

4.000

5.639

4.900

Arroyo de la Vega

3.236

4.144

3.632

In the area to the north of the capital there are three very different regions. The first, located around the National I (Fuente del Fresno, Ciudalcampo and Santo Domingo), is made up of detached homes in plots of about 3,000 sqm within luxury residential developments. The buyer profile is marked by Spanish and foreign families with high purchasing power, usually entrepreneurs or multinational executives with an average of three children looking for large houses with swimming pool and garden. Prices can reach 5,000 euros / sqm as in the case of the Ciudalcampo urbanisation.

The second is formed by municipalities, such as San Sebastian de los Reyes and Algete, where medium-sized Spanish families looking for a villa outside Madrid who can not afford the houses in the previous areas, can choose between small houses in the urban area at 900 euros / sqm and newly built properties. The latter, both in buildings and townhouses, are priced at around 4,000 euros / sqm including garage, swimming pool and communal garden areas.

Finally, Cobeña and Paracuellos del Jarama offer a wide range of properties with communal areas and an average price of around 1,800 euros / sqm.

Property prices in la Zona Norte de Madrid (Figures in euros / sqm)

Minimum

Maximum

Average

1.200

4.500

2.600

800

3.000

1.600

1.175

2.600

1.800

Ciudalcampo/Santo Domingo

600

4.600

2.190

Paracuellos

780

3.200

1.800

San Sebastián de los Reyes Algete Cobeña

Market Trends. The Spanish Residential Market | 33

Districts of the city of Barcelona

Barcelona

Barcelona

Horta-Guinardó Sarrià-Sant Gervasi

1.608.746

34.669 EUR

27.558 €

4.515 €/m²

2%

Population or number of inhabitants

Average Gross Income

Disposable Income

Average Price 2018

Interannual Variation

Nou Barris

Les Corts Sant Andreu

Gràcia

In 2018, house prices in Barcelona increased by 2% and exceeded 12% in the outer areas of the city. This is a change of trend with respect to previous years and it will continue throughout 2019 due to three factors: the different price levels, the different types of buyers and the increasing number of tenants who are becoming home owners.

The rental market was affected in 2018 by two reasons: a growing number of tenants in central areas moved to the outskirts of the city and there was a decrease in the number of foreigners looking to rent a house during the first 6 months of the year before their numbers started increasing during the second half of the year.

Throughout the first quarter of 2019, it is foreseeable that the house prices in Barcelona are about to experience a slight drop in the most premium areas. This will be a great opportunity for buyers and it will turn the Catalan capital into a very attractive city compared to other European cities. The increase in economic and

By 2019, the real estate market will take a year to pause in Barcelona capital, although in the surroundings it will once again record double-digit growth. Even though in 2019 the prices will fall in the Catalan capital, the decrease will be prompt and in no case should it be considered as a real estate bubble. There will not be a

political stability will cause the huge return of foreign investors who are attracted by the favourable conditions for doing business as well as the climate and the incomparable quality of life of the city. In turn, the continuity of low interest rates, the wage increases, the rise in employment and the ease of granting mortgages by banks will cause a medium term increase in the number of national buyers.

crisis nor will it occur in the near future.

With regards to the outer area of the city, the forecast is of continuity in the growth of prices and purchases.

In many locations the price increase will even exceed 15% and in the entire periphery of Barcelona it will be around 10%.

34 | Market Report 2018-19 Spain and Andorra

Eixample Eixample Dreta Sant Martí Ciutat Vella Sants-Montjuïc

Prices in euros/sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

Les Corts

6.330

Sant Martí

4.500

Sant Andreu

3.840

Sarrià-Sant Gervasi

5.950

Sants-Montjuïc

4.090

Nou Barris

3.510

Eixample

5.400

Gràcia

3.980

Horta-Guinardó

3.020

Ciutat Vella

5.200

Market Trends. The Spanish Residential Market | 35

Districts of Barcelona

Ciutat Vella

The proximity to the sea and the great cultural offer of Ciutat Vella places this district in the top favourite list of interested investors who want to buy a second home both for holiday use and to rent out. These investors are, together with the young couples, the main buyers in the more trendy and sought-after neighbourhoods like El Born and Gótico, where the most popular property type is a flat with two bedrooms, two bathrooms and terrace.

However, the best advantage of the homes in this district is that they have preserved their original features like hydraulic tiles and original woodwork and they are located in stately buildings with modernist details. There is a rise in families looking for properties in Gótico and Born area and investors in Raval and Barceloneta.

The price adjustment experienced last year in the most prime areas of Ciutat Vella was around 15%. For 2019, stability in prices is expected with an increase in the number of purchases by the national client and the lack of international buyers.

Property prices in Ciutat Vella

Eixample

Sants-Montjuïc

Passeig de Gràcia, Rambla de Catalunya, Enric Granados and Passeig Sant Joan are the most sought-after streets in the elegant area of Eixample. Passeig de Gràcia is a prestigious area and has always boasted of having the most stately homes in Barcelona. This area directly competes with the pleasant Rambla and the quiet and semi-pedestrian Enric Granados. The last area is perfect for walking and well connected to the city. Passeig Sant Joan is highly popular for having more affordable homes than the rest of the mentioned areas.

This district has still maintained its real estate growth, which began in 2017 thanks to an increase in property demand and prices. This rebound stems from Miquel Bleach and Salvà streets, located in the neighbourhoods of Hostafrancs and Poble Sec, respectively, as the most expensive areas in the district after reaching average prices of around 5,800 euros / sqm.

(Figures in euros / sqm)

Minimum

Maximum

Average

Raval

2.000

4.500

3.000

Gótico

2.500

5.100

3.800

Barceloneta

3.500

5.500

4.500

Sant Pere, Santa Caterina i Ribera

3.500

6.500

5.000

In 2018, the international clients led the purchases in the district by up to 58% compared to 42% by national buyers. In the lead are the French, with 20% of the purchases, followed by 12% Chinese, Italians (8%), Swedes (8%) and the rest were Dutch, Austrians, Belgians, German and Americans.

In 2018, the average price of apartments in Passeig de Gràcia reached 10,410 euros / sqm, which is double the amount of 5,038 euros / sqm in Passeig Sant Joan. The district with the most purchases in 2018 (up to 40%) was Eixample Dret, followed by Eixample Esquerra, with 23% of purchases.

The situation in the nerve centre of the city has placed Eixample in the crosshairs of international clients, accounting for 52% of the purchases of the district compared to 48% national buyers. The Chinese have been the top buyers with 15% of the purchases in 2018, followed by the French and Americans (12%) and Poles (10%). 12% are from other European countries and 39% are from the rest of the world.

Urban transformation, which aims to restore the district’s traditional architecture, as well as its central location and the varied leisure and gastronomic offer attract both national and international clients. The first accounts for 85% of purchases who are young couples and singles looking for their first homes. These properties range between 50 and 80 sqm and investors who buy such properties do so for letting purposes.

The most sold types of properties are penthouses and mainly large-size houses with high ceilings, original fea-

On the other hand, 15% of purchases made by foreigners from Asian countries focus on homes located in classic

tures, such as cement tiles and large terraces.

estates that have preserved their original features.

Property prices in Sants-Montjuïc

Property prices in Eixample

(Figures in euros / sqm)

(Figures in euros / sqm) Maximum

Average

Hostafrancs

4.120

5.880

4.710

5.410

La Bordeta

3.500

4.420

4.000

11.760

5.650

Sants-Sants

3.170

4.880

3.990

8.190

4.750

Sants-Badal

2.940

2.940

2.940

Font de la Guatlla

3.310

4.660

3.930

Poble Sec

2.540

5.810

4.360

La Marina del Port

3.470

4.290

3.760

Maximum

Average

Eixample Esquerra

3.990

6.960

Eixample Dret

3.770

Sagrada Familia y Fort Pienc

3.380

Nova Esquerra y Sant Antoni

36 | Market Report 2018-19 Spain and Andorra

Minimum Minimum

3.360

7.650

4.650

Market Trends. The Spanish Residential Market | 37

Sarrià – Sant Gervasi

Les Corts

The most premium neighbourhood in this district is the sophisticated Pedralbes that, framed between the hills of Collserola and Avenida Diagonal, is within easy reach to the city. Pearson Avenue remains as one of the most expensive addresses in Barcelona, reaching an average price of 10,000 euros / sqm.

Sarrià, Sant Gervasi and Turó Park have a wide offer of properties ranging from penthouses to large detached family homes with gardens. The average price of these properties is over 4,700 euros / sqm.

The profile of the buyer consists of people with a high purchasing power who are mostly locals, although the international buyers did emerge in 2018. These clients have shown particular interest in properties in the high zone with prices over 3 million euros, which is a safe investment for them.

Detached houses of up to 700 sqm, with at least six bedrooms, on plots of more than 1,500 sqm with large garden and absolute privacy and views over the city are the typical properties found in this prestigious avenue.

The buyer profile of these homes is mostly foreigners from different nationalities such as Russian, Ukrainian, Swiss, American and Romanian, and many of them are entrepreneurs and athletes.

Turó Park and Tres Torres remain as the most sough-after locations.

Property prices in Sarrià – Sant Gervasi (Figures in euros / sqm)

Minimum

Maximum

Average

Sant Gervasi – Galvany

4.210

6.530

5.330

El Putxet i el Farró

2.950

7.320

4.720

Sant Gervasi – La Bonanova

3.300

8.300

5.350

Sarrià (Santa Amèlia – Casco Antiguo)

4.710

8.160

6.370

Les Tres Torres

5.830

6.440

6.040

Vallvidrera

2.520

4.170

3.290

Balmes

4.400

5.380

5.000

Turó Park

4.980

10.050

6.990

During 2018, the housing market slowed down and as a result, it took on average 8 months to sell a property.

Looking ahead to 2019 we foresee a gradual adjustment in prices to respond to the national client’s demand.

The rest of the district, which perfectly combines the residential character with the hustle and bustle of all the services it offers, has a high demand from national customers. With an average price of around 4,500 euros / sqm, the most common buyers are families with children who are looking for semi-detached houses or apartments with a minimum of three bedrooms and over 100 sqm.

Les Corts entered a period of maturation in 2018 in which there were still purchases carried out, but it didn’t experience significant price increases.

Property prices in Les Corts (Figures in euros / sqm)

38 | Market Report 2018-19 Spain and Andorra

Minimum

Maximum

Average

Pedralbes

5.130

7.920

6.330

Pearson

7.090

13.880

10.490

Les Corts

3.740

5.880

4.860

Maternitat i Sant Ramon

3.390

5.500

4.380

Market Trends. The Spanish Residential Market | 39

Gràcia and Horta-Guinardó

The charming Gràcia district continues to attract international clients who show a clear preference for Barcelona’s bohemian neighbourhood par excellence. The wide and varied gastronomic and cultural offer, which has often been referred to as ‘Brooklyn’ or ‘Soho’ of Barcelona together with the variety of amenities and services, have turned this area into one of the most attractive districts.

For its part, in the adjoining district of Horta-Guinardó, buyers choose to reside in one of the most emblematic areas of Barcelona. The oasis of Font d’en Fargas where the demand, which is mainly from domestic buyers, focuses on houses with garden, detached or semi-detached properties, joins the other areas of the district where two or three bedroom flats are in high demand.

Vila de Gràcia, which comprises of 5 neighbourhoods, has an average property price of 6,250 euros / sqm, followed by Rambla del Prat, Verdi, Torrent de l’Olla and Gran de Gràcia, which have all reached a stage of maturity. For 2019, the prices are set to become stabilised.

Property prices in Gràcia and Horta-Guinardó

While the French, Italian and English clients look for one or two bedroom flats to rent, the Brazilians, Serbs, Austrians, Argentines and Spaniards prefer larger homes or top-floor flats to live with their family.

Nou Barris and Sant Andreu

Sant Martí

The urban changes linked to the arrival of the new AVE train station are the key to the revival of Sant Andreu, a district that experienced the highest price rises in 2018 with 5,790 euros / sqm. The new La Sagrera railway station is a major high-speed train station in Barcelona and has increased the district’s desirability.

The profile of the buyer in the growing district of Barcelona consists of national clients. Spanish buyers account for 80% of purchases compared to 20% by foreigners, led by the Chinese, Russians and Nordics who look for high-rise flats in modern buildings.

Diagonal Mar, the industrial zone that has been transformed in recent years in one of the most premium areas of Barcelona, is the most sought-after location for these international clients who have accounted for 40% of purchases in 2018. Next to the beach of Llevant and well connected with the centre of the city by public transport, the properties are spaces, bright and airy, and boast spectacular views of the sea or the park.

(Figures in euros / sqm)

Minimum

Maximum

Average

Gràcia Nova

3.200

5.490

4.530

La Salut

2.860

4.290

3.120

Vallcarca-Penitents

1.370

4.510

3.110

Vila de Gràcia

2.710

7.660

5.170

Font d'en Fargas

3.360

4.030

3.780

Guinardó

2.190

3.710

3.020

Montbau

2.010

2.750

2.260

The price of Diagonal Mar homes, which are highly popular among investors, range between 5,000 and 12,000 euros / sqm, a maximum amount which exceeds figures in the most exclusive neighbourhoods in the city.

This area, where the most modern and innovative character of Barcelona is fused with the presence of the ancient nucleus, will cause profound changes in the lower part of the neighbourhoods of Sagrera and Sant Andreu.

Nou Barris, however, still has room for improvement in terms of easier access to financing by the banks, improving the job market and being perceived as a district where investment opportunities with which you can make big profits through buy-to-lets and capital appreciation exist.

Property prices in Sant Andreu

Much more affordable, in the price range of 4,500-5,500 euros / sqm of moves the housing of other areas of the district that are sought by customers, such as Vila Olímpica, Poblenou and El Clot, the latter being in high demand. In Vila Olímpica, the demand is focused on large apartments of about 150 sqm with communal areas and garage, while in Poblenou, Spanish families make up the buyer profile of 3 bedroom and 2 bathroom flats.

Property prices in Sant Martí (Figures in euros / sqm)

Minimum

Maximum

Average

Vila Olímpica

3.200

5.500

4.500

Parc i la Llacuna del Poblenou

3.800

5.000

4.500

Poblenou

5.100

6.000

5.550

Provençals del Poblenou

3.000

4.000

3.500

(Figures in euros / sqm)

40 | Market Report 2018-19 Spain and Andorra

Minimum

Maximum

Average

Nou Barris

1.870

4.760

3.510

Clot

3.800

5.000

4.300

Sant Andreu

2.260

5.790

3.840

Diagonal Mar i Front Marítim

5.000

11.000

7.000

Market Trends. The Spanish Residential Market | 41

Rentals

In 2018, the rental market in Barcelona has achieved the longed for stability in prices. Although there is balanced supply and demand, prices would still need to decrease in order to meet the demands of the national client. However, the approval of the new decree law could draw a scenario in which there is a reduction in property supply that would not be give margin to the price drop.

It is expected that throughout 2019, the more central locations could see rent price stability while in the most affordable neighbourhoods or the outer areas of the city a slight increase in rental prices might be on the cards.

The Areas Most in Demand Engel & Völkers focuses its rental activities on the most popular districts of Barcelona: Ciutat Vella, Sarrià-Sant Gervasi, Eixample, Les Corts, Gràcia and Sant Martí.

Nevertheless, the growing demand can be seen in El Vallès, mainly in Sant Cugat, and Badalona.

The streets with the most rental demand in 2018 were Passeig de Gràcia, between Passeig Sant Joan and Urgell, where the average prices are around 20 euros / sqm.

• Ciutat Vella: The continuous demand for rental property within the old part of the city has kept the average price at 20 euros / sqm in 2017, the highest in Barcelona next to Eixample. The most searched properties for rent are between 50-80 sqm.

• Eixample: Furnished and well-located properties in the most emblematic streets of the city, with special interest in modern architectural estates with character, are the most sought after in a district where the average price equals Ciutat Vella within the 20 euros / sqm range. The monthly rent is on average 1,670 euros.

• Les Corts, Gràcia y Sant Martí: in these areas, there is strong demand both nationally (because of its neighbourhood, the residents who have always lived in Gràcia, Les Corts, and Poblenou and want to continue living there) and as for the international clients, they are attracted by the proximity to centre of the city and for the uniqueness of these areas. Diagonal Mar is one of the main highlights as it’s chosen by the international client for its modern properties that boast views towards the sea and the beach.

The most popular homes in these districts are between 50 sqm and 90 sqm, with average prices that are around 16.5 euros / sqm in Les Corts and Gràcia and 19 euros / sqm in Sant Martí.

There are two factors that will be the main driving forces behind the increased demand: on the one hand, the increase in the number of young people leaving home and wanting to live on their own thanks to more employment and, on the other hand, the international demand that will continue with full force in the city. In terms of property supply, it should be noted that more and more rental homes are of high quality since most of the properties that were previously rented out have now been sold so investors look for more renovation properties to buy for cheap before renting them out for profits.

• Sarrià-Sant Gervasi: Foreign families looking for properties that are over 150 sqm in the most exclusive areas make up the profile of the tenants in a district

Rental prices in Barcelona

where the proximity to international schools in the area is highly valued. The average income that tenants pay in this area exceeds 2,300 monthly euros.

42 | Market Report 2018-19 Spain and Andorra

(Figures in euros / sqm)

Minimum

Maximum

Average

Sarrià-Sant Gervasi

14

20

17

Eixample

14

30

20

Ciutat Vella

16

25

20

Les Corts

14

20

16,5

Gràcia

14

20

16,5

Sant Martí

15

30

19

Market Trends. The Spanish Residential Market | 43

Badalona and Hospitalet

Santa Coloma de Gramanet

Badalona

Badalona

Hospitalet

The construction of the harbour and the extension of the port docks represent a total renewal for the real estate market of the outskirts of Barcelona. The increase in demand in Badalona will continue throughout 2019 and prices will be an average of 2,560 euros / sqm. In areas such as Sant Adrià de Besòs, the property prices have already reached 3,720 euros / sqm.

This municipality is part of the metropolitan area of Barcelona and only 8 km from the centre of the city.

This is the area chosen by families and young couples who are looking for buy their first home.

With the high percentage of national buyers who make up 90% of the purchases carried out in Badalona in 2018, the profile consists of those who opt for well-located 3 bedroom flats of around 100 sqm with garage close to the centre or near the sea.

The real estate market of Hospitalet has a high percentage of national clients. 90% of buyers are Spanish compared to the remaining 10% who are foreigners, led by the Chinese.

The pre-owned flats of about 90 sqm are the most in demand at prices in the range of 3,000 euros / sqm.

Sant Adrià de Besòs

Barcelona Badalona

Property prices in Badalona

Property prices in Hospitalet

(Figures in euros / sqm)

(Figures in euros / sqm)

Minimum

Maximum

Average

2.010

3.070

2.560

Hospitalet

Minimum

Maximum

Average

2.580

3.780

3.180

Hospitalet

Badalona Hospitalet

44 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 45

Barcelona’s surroundings Barcelona’s surroundings

Vallès Oriental and Occidental

Vallès Oriental

El Vallès is an increasingly popular option among families who are looking for a well-connected first residence, with a wide range of amenities and parks. The most in demand properties are detached houses and townhouses that range between 250 and 300 sqm.

Vallès Occidental

In 2018, 50% of the buyers in this area were buy-to-let investors. In Vallès Occidental, the foreign client accounted for 20% of the purchases and in Vallès Oriental, 10% of the buyers were foreign.

Barcelonés Baix Llobregat

Garraf

Sant Cugat remains the most premium area, with an average price of 3,320 euros / sqm. The most expensive areas that are close to this town are located 12 kilometres from Barcelona. These include Eixample / Torreblanca, where prices have reached the highest in Sant Cugat (5,280 euros / sqm), followed by Parc Central / Can Matas and Mirasol, where they range between 4,770 and 4,500 euros sqm, respectively. The entrenched but growing demand in Sant Cugat goes hand in hand with

trend in prices continues in 2019, although in a more sustained way.

In Sabadell, where demand is shared between English type townhouses and terraced apartments, preferably located in the centre, the average property price comes at 1,900 euros / sqm, a higher amount than in two of the most outstanding towns in Vallès Oriental: Cardedeu and Caldes de Montbui. These two areas, next to urban centres and excellent road connections with Barcelona are the most in demand and their property prices have reached 1,880 euros / sqm and 1,320 euros / sqm, respectively.

Property prices in Vallès (Figures in euros / sqm)

Minimum

Maximum

Average

Vallès Occidental

700

5.280

2.790

Vallès Oriental

600

2.990

1.640

the continuous increase in Sabadell, where the upward

Vallès Oriental and Occidental Baix Llobregat Garraf

46 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 47

Baix Llobregat

Matadepera

Rentals

In the Vallès Occidental region, there is a municipality located at the foot of the Sant Llorenç del Munt Mountain only 35 minutes from Barcelona. Matadepera offers more affordable properties than other locations closer to the city in a natural and peaceful environment highly valued by young middle class families with young children.

The rental properties most in demand are the 3 bedroom flats and townhouses that have communal areas . In urbanisations, the properties with the highest demand from tenants are detached houses with garden. These are especially popular among tenants between 35 and 45 years of age with children. With regards to centrally located flats, the profile of the tenant consists of young couples and people from 60 years of age upwards.

In 2018, the average property price increased by 5% compared to the previous year, the same increase is expected for 2019. The increase in new-builds by private sellers who buy a plot of land and build a house on it will boost the residential market to grow by up to 15% -20% more compared to the previous year.

The price increases have been mainly registered in the centre, the Golf-Can Vinyers and Verge de Montserrat, where the most expensive addresses are located in Matadepera, especially in Passeig Àngel Guimerà, where the highest average price is between 3,000 and 2,500 euros / sqm.

The majority of buyers are from the region of Vallès Occidental, a small number come from Barcelona and its surroundings and finally, foreigners from the EU make up an even smaller proportion.

In 2018, the average rent price in Matadepera was between 6 and 9 euros / sqm. In a market with scarce supply it is foreseen that prices could increase by up to 5% in 2019.

Rental prices in Matadepera

Just a few minutes away from Barcelona, there is an area with residential character and a very complete offer of amenities and services that is divided into north and south. Martorell, Corbera, Cervelló and El Papiol are the areas with more demand from the north, while Molins of Rei, Sant Boi, Viladecans and Cornellà are the urban areas that concentrate most of the population of Baix Llobregat Sur. Detached houses or residential complexes with garden areas are the most sought-after types of properties by families with children and young couples who choose to live in this metropolitan area due to its excellent public transport network.

(Figures in euros / sqm)

Minimum

Maximum

Average

Centro

7

11

9

Verge de Montserrat

8

11

9

Golf/Can Vinyers

8

11

9

Can Prat/La Plana

7

11

9

Cavall Bernat/Can Robert

5

6

6

Can Solá del Racó/Pla de Sant Llorenç

5

6

6

Les Pedritxes/Rourets

5

6

6

Most of the buyers are national, who make up 95% of purchases, compared to 5% of expats who have chosen to move to Spain, led by the Chinese and European buyers. On the other hand, 100% of the customers in the regions of Anoia and Bages are national buyers.

For 2019, prices are expected to experience increases of more than 10% in the most central areas and a greater number of purchases with more moderate price increases in remote areas.

Property prices in Baix Llobregat (Figures in euros / sqm)

Minimum

Maximum

Average

Castellbisbal, Martorell i Papiol

990

1.860

1.260

Vallirana, Cervelló

1.170

1.690

1.240

Corbera, Pallejà

1.160

1.650

1.350

Molins de Rei

1.750

3.350

2.650

Torrelles, Sant Viçenç dels horts

1.180

1.810

1.490

Sant Boi, Viladecans

1.660

2.360

2.060

Cornellà

2.580

3.780

3.150

Property prices in Matadepera (Figures in euros / sqm)

Minimum

Maximum

Average

Golf

2.300

2.900

2.600

Cavall Bernat/Can robert

1.400

2.300

1.850

Centro

2.150

3.700

2.925

Drac parc

1.650

2.600

2.125

La plana/Can prat

1.900

2.800

2.350

Pedritxes/Rourets

1.250

1.900

1.575

Verge de Montserrat

2.350

2.900

2.625

48 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 49

Garraf

Sant Just

Rentals

This is the most expensive municipality in Baix Llobregat, where average prices in 2018 were between 3,400 and 3,900 euros / sqm, 7% more than the previous year.

In 2017, rent prices stood at 15 euros / sqm, which means a stagnation over the previous year. The most in demand properties are 100 and 130 sqm flats and villas of between 250 and 350 sqm. The multinational executives are the main clients who look for rental properties in this area and in 70% of the cases, they are from other countries.

The type of homes most in demand are the townhouses and villas of between 250 sqm and 350 sqm in Sant Just and San Joan DespĂ­, areas where buyers who are mostly families look for properties that are close to international schools. They also value comfort and the easy access to Barcelona and the airport.

Property prices in Sant Just (Figures in euros / sqm)

Rentals

Located in the Garraf region, Sitges is a vibrant and cosmopolitan town on the coast that enjoys mild temperatures all year round. Located 38 km from Barcelona, it has a great infrastructure for tourism and is a highly sought-after town for main residence or a holiday home.

The apartments that are in most demand for rent consist of 80 sqm and houses of about 300 sqm in the centre, including in Vinyet and Terramar due to their proximity to town and sea and for the peace and tranquility. The tenants are divided into equal parts between national and international clients.

Rental prices in Sant Just (Figures in euros / sqm)

Spaniards account for 70% of purchases compared to 30% of foreigners in an area that has experienced an increase in the number of buy-to-let homes.

Sitges

Sant Just Desvern

Minimum

Maximum

Average

12

18

15

The most popular homes are the 100 sqm penthouses and apartments between 80-110 sqm with terrace and sea views. The buyer profile is mostly foreigners who make up to 65% of purchases compared to 35% of national customers. Within the international clients, 30% of buyers are English, 20% are French and the Dutch and Americans account for 10% respectively. The rest is between Belgians, German and other nationals from Eastern Europe.

Minimum

Maximum

Average

Sant Just Desvern

3.200

4.500

3.700

Esplugues de Llobregat

2.900

4.400

3.500

Sant Joan DespĂ­

2.700

3.000

2.800

Property prices in Sitges

Sant Feliu de Llobregat

2.500

2.900

2.700

(Figures in euros / sqm)

50 | Market Report 2018-19 Spain and Andorra

Minimum

Maximum

Average

Primera linea

6.000

9.000

7.000

Vinyet

5.000

7.000

5.500

Terramar

5.000

7.000

5.500

Centro

4.000

5.000

4.500

In 2018, the average rent price in Sitges increased to between 15 and 17 euros / sqm compared to average price of 13 euros / sqm the year before.

Rental prices in Sitges (Figures in euros / sqm)

Minimum

Maximum

Average

Primera linea

15

20

17

Vinyet

14

18

16

Terramar

14

18

16

Centro

13

17

15

Market Trends. The Spanish Residential Market | 51

Gerona - Costa Brava Gerona - Costa Brava

Gerona Cadaqués Roses Empuria Brava

Gerona Gerona

The proximity of Gerona to the sea and the mountain as well as the French border and Barcelona, with which it shares excellent connections via the motorway and AVE, are the decisive factors when choosing this comfortable city to live in.

In Gerona, 65% of purchases are made by the Spanish and the rest are foreign clients led by French, Dutch and the English, who are mainly interested in fincas (country homes).

The most popular homes in this city are 2-3 bedroom flats of between 70 and 100 sqm and close to medical, educational and shopping centres, especially the ones within proximity to the high speed train station.

Property prices in Gerona

In the Barri Vell area, the demand is focused on small apartments for short stays in the city. After becoming the fashionable neighbourhood of Gerona, this is an area highly sought by investors who buy properties to rent out to tourists and students.

The buyer profile of other areas of the centre, such as Eixample, Devesa and Montilivi is drawn by families from the city with access to mortgages. Since last year,

(Figures in euros / sqm)

Minimum

Maximum

Average

Centre-Barri Vell

2.666

2.866

2.766

Eixample

2.171

3.020

2.531

Montjuïc

1.650

1.650

1.650

La Selva

1.015

1.560

1.287

Pla de l’Estany

1.630

2.179

1.904

There is a very high demand for rental properties, but the offer in general is very low, which has caused an increase in prices and difficulty in finding a home.

there has been an increase in customers from Barcelona who choose to live in Gerona, thanks to its excellent transport connections and affordable house prices.

Lloret de Mar Blanes

Gerona

Eixample is the area with the highest prices in the city, mainly in the north, where the average price per square metre exceeds 3,000 euros, with La Salle as the most sought-after address. Although, Aragó street, in Palau, has reached an average price of 3,755 euros / sqm.

Costa Brava

52 | Market Report 2018-19 Spain and Andorra

Market Trends. The Spanish Residential Market | 53

Costa Brava

Cadaqués

Roses

The easternmost town of the Iberian Peninsula, which belongs to the region of Alto Ampurdán, bases its economy in tourism. It is a characterful Bohemian enclave and highly exclusive. The proximity to Barcelona and France makes Cadaqués a chosen destination to buy a holiday home for investment or relaxation purposes.

This town in the region of Alt Ampurdán is a well-known tourist destination that also boasts the most prominent fishing port on the north coast of Catalonia.

The most popular homes are detached homes between 400,000 euros and 700,000 euros with sea views and south-facing apartments between 70 and 90 sqm with large terraces of between 250,000 and 450,000 euros.

In both types, the buyer profile is mostly foreigners who made up 85% of purchases in 2018. However, a growing interest from national customers was observed last year.

Among the foreigners, the French stand out with (50%), German (20%) and the Belgians (15%), followed by the British and Russian buyers.

53% of the property purchases from other nationalities are by the French buyers, compared to 26% of Catalans and 21% of the Belgians, British, German and other countries outside of Europe.

Property prices in Roses (Figures in euros / sqm)

Property prices in Cadaqués (Figures in euros / sqm)

Lloret de Mar - Blanes

At the top of Ampurdán, just 50 minutes by AVE from Barcelona and only 60 km away by car from France, Empuriabrava stands out for being the largest residential marina in Europe with more than 30 km of navigable waterways that make it possible to moor your boat in front of your home.

The South of the Costa Brava, just one hour from Barcelona and 20 minutes from Gerona, has some of the most sought-after resorts on the Catalan coast, such as Cala San Francesc in Blanes, Martossa in Tossa de Mar, and la Mongoda in Lloret. On the other hand, the inner region of the national parks, Montseny and Les Guilleries, allows you to enjoy nature with utmost privacy without being away from the great road connections and the nearby beaches of the Costa Brava.

The homes by the canal, the closest ones to the sea, as well as the properties that have their own mooring are the most in demand. The preference for those who have a sailboat or yacht focuses on canals that make it easy to maneuver or the ones that are just before the bridges.

The star property in Empuriabrava would be an individually-designed house of about 200 sqm with 3-4 bedrooms, a 500 sqm land and with mooring in the wide canal after of the bridges, where only boats can go up to 2.80 metres.

This type of property would have a price tag of around 650,000 euros, while in the areas close to the canal in front of the bridges, where you can moor sailboats or big motor yachts, the prices reach 4,500 and 5,500 euros / sqm. 68% of buyers are foreign with the French taking the lead and accounting for 64% of foreign buyers, followed by the German (20%). The rest is divided between the Belgians, Dutch and the British.

The zones are subdivided into three • The maritime strip, where demand is centred around detached homes close to the sea with prices between 450,000 and 750,000 euros, and apartments in the centre or by the sea ranging between 150,000 and 300,000 euros. This is where one can find the most expensive area: Blanes Sant Francesc, one of the most prestigious urbanisations on the Costa Brava, in which property prices can reach 8,000 euros / sqm.

• The northern zone consists of Montseny-Guilleries, where the demand is mostly focused on farmhouses or rural properties and the prices are a maximum of 2,500 euros / sqm.

Minimum

Maximum

Average

956

2.800

1.878

Canyelles

2.300

3.190

2.744

Almadrava

2.060

3.500

2.780

Puig Rom

3.055

3.508

2.181

Pau

2.219

2.219

2.219

Palau Savardera

885

1.465

1.400

Santa Margarita

164

2.164

2.164

Mas Fumats

1.647

1.719

1.683

Property prices in Costa Brava South

Mas Buscà

1.320

1.393

1.357

(Figures in euros / sqm)

Roses pueblo

The most popular homes are luxury villas with sea views that start from one million euros, but they can sell for prices above 10,000 euros / sqm in the most exclusive areas, as well as the apartments in the centre of the town for around 350,000 euros.

Empuriabrava

• The inner zone, which has detached homes and much cheaper apartments. As with the rest of the Costa Brava, the percentage of foreign clients is higher than national buyers. Up to 60% of purchases are led by the French (50%) and Russians (20%). y rusos (20%).

Property prices in Empuriabrava Minimum

Maximum

Average

Primera línea

4.000

10.500

7.000

Centro

2.500

6.500

4.000

Port Lligat/Parque Natural

3.500

7.500

S'Aguarda

2.750

Caials Sa Conca/Es Quers

(Figures in euros / sqm)

Minimum

Maximum

Average

Lloret

1.250

6.000

2.800

Minimum

Maximum

Average

Tossa

1.500

6.000

3.000

Canal ancho

2.500

4.000

3.300

Blanes

1.250

8.000

2.500

5.500

Canal estrecho

2.200

3.900

3.410

Montseny - Guilleries

800

2.500

1.300

5.000

3.250

Anteriores a los puentes

3.500

5.500

4.500

La selva interior

600

2.300

1.300

2.000

3.250

2.500

Sin canal

2.000

3.300

2.400

2.500

6.500

5.250

Castelló d´Empuries

990

1.500

1.200

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Market Trends. The Spanish Residential Market | 55

Tarragona Tarragona

Tarragona

With 14 kilometres of coastline and a UNESCO World Heritage Site, Tarragona has all the amenities residents can expect from a mid-size city. The awakening of real estate market has been delayed compared to other provinces due to the significant property stock existing after the housing bubble burst.

Tarragona

Tarragona

In 2018, the average property price was in a range of between 1,166 euros / sqm in the maritime districts and 1,847 euros / sqm in Eixample, although in locations, such as Limonium Street in Tamarit, Via Augusta and Paseo de Rafael de Casanova, prices have reached over 2,000 euros / sqm.

Property prices in Tarragona (Figures in euros / sqm)

Minimum

Maximum

Average

Part Alta

587

1.871

1.248

Eixample

1.181

2.481

1.847

Nou Eixample Nord i Sud

658

1.651

1.390

Barrios Martítimos

621

1.547

1.166

Via Augusta – Músics - Vall de l’Arrabassada - Antibes

1.466

2.727

1.790

Urb. Cala Romana – Boscos – La Mora - Tamarit

1.071

2.208

1.441

It is these last two streets are nestled between the most popular areas next to the Rambla Nova neighbourhood which represent the most prestigious area. For its part, the proximity to the d’Arrabasada Beach and the centre of the city has turned Vía Augusta into a sought-after location, where detached homes come out on top.

The demand for property in Tarragona is mainly from the national market, where 80% of buyers are national against 20% foreign. With regards to the foreign buyers, who are mainly the French and Swiss, the demand is focused on La Mora and Tamarit, where customers look for detached holiday homes near the beach.

Tarragona

56 | Market Report 2018-19 Spain and Andorra

The momentum of the market will come when the rise in property investment goes hand in hand with resale purchases.

Market Trends. The Spanish Residential Market | 57

Catalan Pyrenees - Gerona and Lérida Catalan Pyrenees - Gerona and Lérida

Valle de Arán

Valle de Arán Cerdaña

The privileged Lérida Pyrenees, formed by 33 villages, is one of the richest valleys in Catalonia thanks to Baqueira station, an authentic ski resort in the Aran Valley.

Cataluña

The Aranese real estate market started to recover in the winter of 2015/16 after four years of hardly any activity.

In 2017, the upward trend allowed an increase in prices and purchases up until 2018, a year in which home sales have been mainly among the national client, who already account for 80% of purchases. Among the Spanish, the Valencia and Basque Country locals stand out, while among foreigners, the predominant nationalities are the French and British.

For its part, Bagergue is the highest village in the valley at 1,419 metres above sea level and 4 km from Baqueira, while Arties is one of the most sought-after resorts in Valle de Arán thanks to its location - between Baqueira and Vielha-, mainly because of its gastronomy and exclusive nightlife.

At 1,500-1,700 metres above sea level, the most sought-after areas are Baqueira. the Val de Ruda urbanisation, as well as in nearby towns close to the ski tracks, such as Bagergue, Salardú and Arties, where prices have rebounded on average by 12% compared to previous year. This is especially the case with the pre-owned properties and detached houses.

The Val de Ruda region, located at the foot of the Baqueira-Beret ski resort, is a complex with 500 properties, three hotels, shopping arcades, schools, ski equipment rental shops, restaurants, and chairlifts for easier access to the ski station.

Valle de Arán Cerdaña

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Market Trends. The Spanish Residential Market | 59

Vielha

Cerdanya

Property prices in Valle de Arán (Figures in euros / sqm)

The capital of the Aran Valley is the nerve centre of the region. It is bustling all year and offers all kinds of properties, from detached homes with gardens, to small apartments. In Vielha, there are two of the most prestigious urbanisations in the area: La Solana and Santa Gemma, both with private villas that are built in typical Aranese style.

The area’s commerce, the wide gastronomic offer and its variety of bars are perfect for anyone who wants to enjoy the best ski experience.

Minimum

Maximum

Average

Baqueira

3.100

7.000

4.700

Unha - Bagergue Salardú

2.800

4.400

3.250

Arties

2.611

4.800

3.000

Vielha y Mijaran

1.500

2.800

2.100

Bajo Arán

1.200

1.850

1.575

Pallars Sobirà Esterri d’Àneu

1.500

2.000

1.850

Located in a long valley east of the Pyrenees that runs along the Segre River and natural border crossing between Catalonia, France and Andorra, Cerdanya is the chosen destination by the upper class Catalans for their second or third residence. Its strategic location, the excellent road connections from Barcelona and Gerona and the most number of sunny days throughout the year make it highly desirable to live or spend your holidays both in summer and in winter. In fact, practically all (98%) of the buyers are national, of which more than 90% are Catalans arriving from Barcelona and Gerona.

The prestigious ski resorts of Cerdanya offer different activities throughout the year including snowboarding, skiing on all its slopes as well as routes for hiking, trekking, horse riding, mountain biking, etc. To this variety of activities we must add those you can take part in the airfield and the magnificent golf courses.

The most in-demand properties are the townhouses which account for 40% of the sales carried out, followed by detached homes and apartments (27%) and plots (5%). The panoramic views of the valley and the mountains, with south-facing orientation and in urbanisations with scenic views are the most in-demand features.

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A minimum of three bedrooms, two bathrooms plus cloakroom, with a multi-purpose room and garage between 150 and 200 sqm and with prices below 500,000 euros are the most sold homes by Engel & Völkers in 2018, although 21% of the sales have been properties with prices between 500,000 and 2 million euros against 36% of those with a price tag of less than 300,000 euros.

Despite the difficulty of predicting the second and third residence market, which depends almost entirely on the Catalan customers, Engel &Völkers estimates an increase of 10% in purchases in 2019 with the prices maintaining the same growth rate as last year.

Bolvir is still the area with the highest prices, where some of the most sought-after urbanisations are located in the prestigious Cerdanya, such as the Royal Golf Club, where average prices are up to 3,800 euros/sqm.

Property prices in Cerdanya (Figures in euros / sqm)

Minimum

Maximum

Average

Alp

1.650

2.570

1.830

Das

1.800

2.500

2.325

Fontantals

1.430

2.330

1.880

Bolvir, Real Club de Golf Cerdaña

3.000

4.000

3.800

Bolvir

2.500

3.500

2.900

Prats, urbanización El Pla

2.000

2.900

2.225

Llívia

1.900

2.300

2.150

Puigcerdà

1.325

2.300

1.800

Bellver

1.580

1.750

1.690

Ger

1.425

1.875

1.650

Guils de Cerdanya

1.670

2.225

2.050

Market Trends. The Spanish Residential Market | 61

Districts of the city of Valencia

Valencian Community

Pobles del Nord

Pobles de l'Oest

Valencia

Rascanya

Benicalap

790.201

28.181 EUR

22.922 €

1.942 €/m²

16,4%

Population or number of inhabitants

Average Gross Income

Disposable Income

Average Price 2018

Interannual Variation

Benimaclet

La Saïdia

Campanar

Algirós Ciutat Vella

El Pla del Real Poblats Marítims

L'Olivereta

Extramurs Eixample

The Valencian Community leads the property resale ranking in Spain. For a few years Valencia was known for its high number of new-builds. Now, however, the Valencian Community leads the ranking in Spain for the highest home resales. According to the 2018 Real Estate Registry Statistics from the College of Registrars, 87% of the total properties sold in this region already had an owner before.

The average price per square metre of these properties was 1,589.5 euros, according to the Ministry of Development. This is a lower figure registered in the Valencian capital, which stood out in the past year due to the significant increase in the price of properties. Specifically, the city of Turia saw the value of its properties rise by 16.4%, going from an average price per square metre of 1,668 euros to 1,942 euros.

Foreign demand will continue to be one of the main pillars of real estate business in the Valencian Community this year. International investors accounted for 26% of total property purchases in the Valencian Community in 2018, which meant the city became the third most attractive region for foreigners after the Balearics Islands and Canary Islands.

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According to data from the Property and Land Observatory under the Ministry of Development, in the second quarter of 2018, the number of house purchases experienced a year-on-year increase of more than 11% at national level and 160,000 purchases were exceeded in a quarter -; In the Valencian region, this increase reached 19%, one of the biggest rises in all of Spain.

Patraix

Quatre Carreres

Jesús

Valencia also stands out in terms of the rate of sales compared to the number of inhabitants, as it’s the region of Spain with the highest relative real estate activity with 4.09 purchases per thousand inhabitants by the end of 2018.

Another fact that suggests the continuity of the upward trend in Valencia’s market is that the average time it takes to sell a property in the Valencian capital compared to the rest of Spain; 6.5 months compared to almost eight months from the rest of the country, according to data from the appraisal company Tinsa. Districts of the city of Valencia.

Camins al Grau

Pobles del Sud

Prices in euros/sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

El Pla del Real

4.823

Camins al Grau

2.571

Rascanya

1.869

Poblats Marítims

3.266

La Saïda

2.343

Algirós

1.787

L’Eixample

3.054

Quatre Carreres

2.080

Benicalap

1.691

Campanar

2.878

Extramurs

2.051

Jesús

1.166

Ciutat Vella

2.877

L’Olivereta

1.920

Pobles de l’Oest

1.000

Benimaclet

2.845

Patraix

1.897

Market Trends. The Spanish Residential Market | 63

The city of Valencia is distributed in 19 districts, subdivided in turn into 89 neighbourhoods and districts. Engel & Völkers covers the best locations in the capital and the province, grouping them into three large areas: Centre - Ciutat Vella, Eixample, Extramurs and La Saïdia.

Beach - Pla del Real, City of Arts and Sciences, Patacona, Malvarrosa, Alboraya, Puig, El Saler as well as the municipalities of Puzol and Cullera, among others.

The surroundings - Paterna, Rocafort, Godella, El Vedat, Bosque, La Eliana or Betera.

Centre

This is the most in-demand area of the city, especially the properties in stately areas with generous footage and three or more bedrooms; the houses with high ceilings, moldings and handcrafted mosaic floors and topfloor flats. The first type, especially between Valencian families in their majority as well as the last type of property is popular among foreigners and young people with high purchasing power.

In 2018, the most expensive property sold by the Engel & Völkers Valencia team was a top-floor flat located in Eixample. It was sold for four million euros.

The foreigners who bought more properties in the area are the French, German, American and Chinese, to which other nationalities such as Italians, Dutch, Belgians and Russians are added. Europeans and Americans look for renovated homes with character in order to make profits from, either through capital appreciation or by renting it out.

In the centre of Valencia there are three very different areas:

• Eixample, the most exclusive area of Valencia.

This is Valencia’s upper class area. With prices ranging from 1,733 euros / sqm to 4,100 euros / sqm, it is distributed in three neighbourhoods: Pla de Remei, Gran Via and Ruzafa. In the first two, the most expensive streets of the city are located, with average prices above 3,200 euros / sqm, such as Jacinto Benavente, Cirilo Amorós and Gran Vía del Maqués del Turia.

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• The old town, Ciutat Vella. this is the historical, cultural and political centre of the city. There are many architectural gems like the Cathedral, the Plaza de la Reina and Miguelete located here.

In this area there is a steady rise in prices, with La Xerea as the neighbourhood with the most expensive prices, exceeding 3,000 euros / sqm on average.

• Extramurs, a very family-friendly area.

In one of the most affordable areas of the centre of the city, family-sized apartments of around 100 sqm with two bathrooms are in high demand, with prices around 150,000 euros for homes that require renovation and 250,000 euros for those that are already renovated.

Property prices in Centre (Figures in euros / sqm)

Minimum

Maximum

Average

Gran Via

2.419

3.688

3.098

Pla del Remei

2.448

4.069

3.258

Ruzafa

1.733

3.145

2.428

El Pilar

2.390

3.298

2.500

El Carmen

2.212

2.745

2.475

La Seu

1.790

3.448

2.761

El Mercat

1.564

2.784

2.050

La Xerea

2.190

3.500

3.011

Sant Francesc

1.094

3.342

Extramurs

1.229

2.543

Alameda - Coast

In this vast and heterogeneous area of Valencia, apartments and houses on the beachfront coexist with flats in the city. This is a booming district where there has been significant growth, both in services and prices.

The type of property most in demand are the three-bedroom and two-bathroom apartments on an area of around 110 sqm, followed by apartments and penthouses. On the beachfront, the buyer chooses apartments of more than 80 sqm with two bedrooms or houses with a minimum of 180 sqm and three bedrooms with a pool.

Most in-demand areas • The coastal area consists of Patacona, Cabanyal and Malvarrosa neighbourhoods. The proximity to the beach has turned the district of Cabanyal-Canyamelar into one of the fashionable areas of the city to reside in.

• Pla del Real area is characterised by its proximity to the Turia gardens as well as the centre of the city. The Plaza of the Spanish legion has become the most expensive address with an average price of 3,900 euros / sqm.

• The City of Sciences, as the most modern and avantgarde area of the city, stands out for its international image and is a chosen destination by foreign buyers and high-purchasing managers and officials.

Property prices in Alameda - Costa (Figures in euros / sqm)

Minimum

Maximum

Average

Trinital, Orriols, Torrefiel, Ayora

1.100

2.900

1.900

Albors, Algirós o la Vega Baixa

1.850

3.700

2.700

Pla del Real, Ciudad de las Ciencias o Patacona

1.600

6.400

3.400

Poblaciones de Costa Norte de Valencia

1.000

4.600

2.000

Poblaciones de Costa Sur de Valencia

1.000

4.000

1.800

2.200

Urbanizaciones de alto standing

1.600

4.800

2.200

1.891

Poblaciones no costeras

600

2.600

1.000

Buyer profile 75% of buyers are national compared to 25% international buyers, led by the French, Russians, British, and Italians. Most foreigners look for apartments as a holiday home in beach areas with a clear preference for top-floor flats.

Market Trends. The Spanish Residential Market | 65

Valencia’s Surroundings

Rentals

This extensive territory into the inner province stands out from the rest of the areas covered by Engel & Völkers Valencia because it has a unique logistics and business location thanks to its proximity to the port and the road that connects with Madrid, as well as to the entire Mediterranean.

The rental market in Valencia remains at its full capacity, but expectations may change with the housing plan laws in terms of rentals. The average price per square metre of the apartments for rent is 10 euros, although it ranges from a maximum of 14 euros / sqm in Eixample and Ciutat Vella to the minimum of 7 euros / sqm that can be found in areas such as La Eliana.

The most common request by the clients that buy urban properties in the metropolitan area of the city is that they must be well connected with the city and with access to multiple services. The profile is made up of national families with children looking for a larger home, and even in exclusive and private developments.

Engel & Völkers predicts a growth in Valencia’s rental market by up to 20% in 2019, a significant but more moderate growth than the increase of 30% registered in the number of purchases during 2018.

In Valencia, the average term of the rental contracts is between one or two years, with very few tenants who are rented for three years in the same home.

Non-residents seek quiet homes, without the noise pollution of large buildings, with swimming pool, nearby amenities and well connected with city, airport and beach.

The highest in demand properties The star property for rent in Valencia is drawn by 3-4 bedrooms and two bathroom apartment distributed in 140 sqm, located in Eixample and with a monthly cost of around 2,000 euros- preferably on the top floor with terrace or balconies and an absolute preference for attictype homes.

Throughout 2018, there has been an increase in demand in residential buildings of the two- and four-bedroom residential center in areas from 90 sqm to 150 sqm, although 25% of Engel & Völkers’ customers have requested independent detached homes. with private garden and pool with a minimum of 200 sqm.

Rental prices in Valencia (Figures in euros / sqm)

In the urban district, there are two types of properties that are highly sought: those that have a residential area, spacious, with three bedrooms and are well connected to the city, and those properties that investors are interested in buying with part of their savings and rent out for profit. These homes must be between 80 and 100 sqm, with good road connection routes, two or three bedrooms and they must be in a good condition.

Profile of the tenant The distribution between national and international buyers has been reversed in 2018 and consists of the first 68% against 32% of foreigners, with the Americans and German in the lead followed by Italians, Belgians, French, Chinese, British, Romanian and Dutch.

Property prices in Valencia’s Surroundings

In such an extensive area that consists of highly heterogeneous properties based on their municipalities, the range of prices is extended to a range from just over 1,000 euros / sqm in Alzira to 3,000 euros / sqm in Nou Campanar.

Campanar, one of the most popular districts outside the centre, stands out for its recently-built properties and buildings – less than 20 years ago- and these properties have communal areas, such as swimming pool, social club, sports courts and other amenities.

66 | Market Report 2018-19 Spain and Andorra

(Figures in euros / sqm)

Minimum

Maximum

Average

Nou Campanar

2.400

3.000

2.700

L’Eliana

1.700

2.300

2.000

Betera

1.800

2.600

2.200

Vedat-Torrent

1.650

2.250

1.950

Urb. El Bosque

1.900

2.600

2.250

Alzira

1.050

1.300

1.175

La Pobla de Vallbona

1.450

1.950

1.700

Mislata

1.600

2.200

1.900

There are three distinct profiles: families with children of medium-high purchasing power, foreigners with high purchasing power who reside in Spain for a limited period of time and couples without children or single people.

It is worth noting the increase of foreign tenants with a very high purchasing power, in large part managers of large multinationals, up to hoarding 56% of the rents of the city. They are mostly French, Italian, British and North American.

The areas with the most demand for rent in Valencia are five: The City of Sciences, the Valencian Parliament, the beach of Valencia, Eixample and Campolivar and Santa Bárbara. The beach of Valencia, driven by the new urban development project of the city, which arouses the interest of foreign clients and investors, already recorded a significant increase in prices and demand in 2017, which has been maintained over the past year.

Minimum

Maximum

Average

Eixample

9

14

11

Ciudad de las Ciencias

8

12

10

Ciutat Vella

8

14

11

Pla del Real

9

13

11

Extramurs

8

11

9

Playa de valencia

8

13

10

Betera (Mas camarena – T. Conill)

8

14

11

Eliana

7

11

9

Godella - Campolivar

8

13

11

Rocafort – Sta. Barbara

9

14

11

Market Trends. The Spanish Residential Market | 67

Alicante-Costa Blanca Alicante-Costa Blanca

Alicante

Alfaz del Pi Benidorm

Alicante

Alicante

Alicante is much more than just one of the most important tourist destinations in Spain. The economic rebound experienced in the heat of its excellent infrastructures - it has an international airport and AVE - and the attractive prices in relation to other cities of the Community have placed it in one of the preferred options for real estate investment and it has become the first province in number of purchases ahead of Valencia and Castellón.

This dynamism, driven in equal parts by the national and international buyer, focuses on properties with a minimum of three bedrooms and two bathrooms overlooking the sea. The most in-demand types of properties in the city are the penthouses and flats facing the sea or the port with terrace located on beaches such as San Juan, Almadrava or Muchavista. For its part, in the coastal areas such as Cabo Huertas, El Campello, Covetá Fumá, the most in-demand properties are the villas.

Property prices in Alicante (Figures in euros / sqm)

It is precisely in Cabo Huertas, where the highest price is recorded, reaching maximums of 5,000 euros / sqm, followed by Playa San Juan (4,500 euros / sqm) and El Campello (4,150 euros / sqm). All of these are prices in very exclusive homes that double the average of the rest of the zones.

Alicante Costa Blanca

68 | Market Report 2018-19 Spain and Andorra

In Alicante there are several nationalities that give the city a cosmopolitan and multicultural vibe. Among the countries with the highest number of homebuyers, we can highlight Germany, France, the United Kingdom, Belgium, Switzerland, the Netherlands, Scandinavian countries and the USA.

Minimum

Maximum

Average

Alicante Centro

1.800

4.000

2.625

Alicante casco antiguo

1.650

2.640

1.950

Alicante Cabo Huertas

1.300

5.000

3.150

Alicante Golf

1.000

2.750

1.875

Playa San Juan

1.600

4.500

3.050

Vistahermosa

1.000

2.500

1.750

La Font

1.000

2.300

1.650

El Campello – Playas

1.000

4.150

2.575

El Campello – Coveta – La Nuza

1.500

3.000

2.250

Market Trends. The Spanish Residential Market | 69

Costa Blanca

Rentals The real estate dynamism of Alicante the last year has also been noticed in the rental segment where the average prices have been placed in a range between 8 and 10.75 euros / sqm.

As with the buying and selling market, the most expensive addresses are located in Cabo Huertas and Playa San Juan, although there is a strong demand with prices that can reach 20 euros / sqm in the city centre, specifically in Explanada de España and Avenida Doctor Ramón y Cajal.

Rental prices in Alicante (Figures in euros / sqm)

Minimum

Maximum

Average

Alicante Centro

7,70

15,00

10,50

Cabo Huertas

4,50

11,60

8,00

Alicante Golf

4,50

11,60

8,00

Playa San Juan

9,00

12,50

10,75

El Campello Playas

4,50

11,60

8,00

El Campello Coveta

4,50

11,60

8,00

Alfaz del Pi This is one of the most popular tourist destinations in the Alicante town of Costa Blanca. The average price of property is around 1,875 euros / sqm, with a continuous increase since 2015 of around 4% per year.

Benidorm Also known as the New York of the Mediterranean, this is the town with more skyscrapers per inhabitant and the third with more hotel beds in Spain after Madrid and Barcelona. For all these reasons, it is considered to be the capital of Costa Blanca.

The main market is divided into two types of properties: individual houses that were constructed 10 years ago and apartments with two or three bedrooms with an average age of 15 years. The first ones are used as main homes, while the apartments are used as holiday rentals.

The most in-demand properties in Benidorm are those located on the beachfront, penthouses, with good views, new or renovated homes and residential complexes with communal areas. While the demand for flats is centred on the first or second line of the beach, the highest standing is dominated by luxury villas with sea views that give the owner privacy.

The city of Benidorm itself is one of the most sought-after locations with beachfront properties and its most expensive addresses are concentrated on Poniente beach, in Vicente Llorca Alós Street where average prices reach 4,100 euros / sqm, and in the streets of Madrid and Alcoy on the Levante beach.

65% of the buyers are foreigners, 50% distributed among citizens of Belgium, Luxembourg and the Netherlands and the other 50% among German, Swiss, Scandinavians and Russians. On the contrary, 80% of the sellers are Spanish.

The main buyers are retirees who want a second home, but also families and single buyers.

The most in-demand areas are El Albir, La Nucía and Alfaz del Pi, especially in the urbanisations of the well connected and high standing surroundings. In all of them, foreign retirees together with couples and families draw the profile of the buyers. For its part, Polop is considered a sleepy town in the coastal resort of Benidorm.

85% of the buyers are foreigners, with a significant presence of Norwegians and Dutch who seek rural and newly built detached homes as well as other nationalities such as British, French, Belgian and Swiss.

Property prices in Benidorm (Figures in euros / sqm) Minimum

Maximum

Average

Playa de Levante

1.590

4.150

2.870

Rincón de Loix

1.309

3.195

2.394

Playa de Poniente

1.497

4.400

2.660

Villajoyosa Playas y Puerto

1.416

2.727

2.200

993

2.982

2.106

Finestrat Urbanizaciones

15% of Spaniards look for newly built detached or semi-detached houses, preferably on the beach of El Albir, where the most expensive addresses of Alfaz del Pi are located. Specifically, the Musicians Boulevard and Camí Vell del Far have prices higher than 4,500 euros / sqm.

Finestrat and Villajoyosa, lower property prices

Property prices in Alfaz del Pi (Figures in euros / sqm)

The urbanisation of Sierra Cortina in Finestrat is one of the fashionable locations thanks to its offer of new-build villas, its proximity to the sea, the mountains, and golf courses. Although it is also a holiday resort, it is highly sought by families who are looking for their first home.

Minimum

Maximum

Average

Playa El Albir

2.000

4.200

3.100

Alfaz del Pi/La Nucía

1.450

2.500

1.875

Polop

1.450

1.950

1.700

For its part, Villajoyosa offers a beachfront, an urban centre and a large port and yacht club. On the supply side, new-builds for sale predominate. On the demand side, the buyers are foreign retirees looking for a holiday home.

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Market Trends. The Spanish Residential Market | 71

Andalusia-Costa del Sol Andalusia-Costa del Sol

Málaga

The capital of Costa del Sol has been one of the great revelations of 2018, as per the market report of Engel & Völkers. Its wide cultural offer, continuous innovation, a strong business network and solid infrastructures have made Malaga the target of many real estate investors.

In a market where foreigners account for 60% of purchases, prices have reached an average of more than 3,000 euros / sqm in 2018 in La Malagueta, the historic centre and Limonar, the most sought after areas of the city. This huge influx of international investors in search of second properties has triggered the maximum price in central areas by up to 8,000 euros / sqm.

Málaga Málaga

But it is in La Malagueta where the highest price is reached with maximums of 9,000 euros / sqm. Its location on the beachfront and the shortage of land have caused a mismatch between supply and demand that has triggered the price increases, mainly in the most sought-after addresses such as Paseo La Farola, Reding

Among foreigners, it should be noted that there is no nationality that prevails over the others, although the Nordics, Dutch, Belgians, French, British, Irish and German take the lead, to a lesser extent, there are also Iranians, Brazilians, Swiss, and Americans that must be added to the list.

Property prices in Málaga (Figures in euros / sqm)

Minimum

Maximum

Average

Oeste

1.800

5.000

2.500

Centro histórico/Soho

2.800

8.000

3.800

Malagueta

3.000

9.000

3.900

Limonar

2.200

6.500

3.200

Cerrado de Calderón

2.000

3.800

2.600

Pedregalejo

2.000

4.200

3.000

---

4.000

2.000

Palo

and the Ciudad de Melilla Promenade.

Benalmádena Puerto Banús and Golf Valley

Golden Mile Mijas Marbella

Costa del Sol

72 | Market Report 2018-19 Spain and Andorra

Although the price growth is observed throughout the city and the forecasts for 2019 point to a more moderate increase in both prices and number of purchases being around 7-10%, there are still areas in the price range of of 2,000-2,600 euros / sqm, such as Cerrado de Calderón and Palo.

The most in-demand types of properties in Málaga are divided into two according to the nationality of the buyer. While foreigners prefer attic-type flats, terraced and single-family apartments, Spaniards choose flats and townhouses.

Market Trends. The Spanish Residential Market | 73

Rentals

Rental prices in Málaga

Benalmádena

Mijas

Since 2018, Engel & Völkers began operating in this municipality located in the heart of the Costa del Sol due to its great real estate potential. The varied offer with a wide range of prices and the quality of its infrastructures and properties have placed Benalmádena in one of the most in-demand towns as a holiday destination on the coast of Malaga.

This municipality located on the western region of Costa del Sol is deep in the foothills of Sierra Blanca, about 450 metres above sea level. This is where Mijas Pueblo is located, with its centre being declared as a historical and artistic complex. This municipality is in a privileged location overlooking the Mediterranean between the coasts of Fuengirola and Marbella.

The penthouses and houses near the beach or overlooking the sea are the most in-demand types of homes, mainly among international buyers who are the main investors in the area, led by the Nordic, German, French, Belgian and British.

This coastal region has 14 kilometres of beaches that are in high demand by both international and domestic buyers.

The investor’s appetite in this town, which has doubled its population in the last decade, has boosted prices to levels of up to 8,000-9,000 euros / square metres in the towns of Calahonda, Atalaya and Cala de Mijas.

(Figures in euros / sqm)

The rental market registered a strong boost in the city thanks to an offer well below demand. By 2019, this is expected to increase. The reason for this greater offer is that many owners re-let their homes for long periods instead of opting for holiday rentals.

The average price of a house for rent is between 9 and 12 euros / sqm, although as in the sale, there are addresses in the centre, La Malagueta, Larios Street and Paseo Ciudad de Melilla, respectively, that reach 15 euros / sqm.

The rental market is also shared between 60% of foreigners and 40% of Spaniards.

Minimum

Maximum

Average

Oeste

7

17

10

Centro histórico/Soho

9

18

12

Malagueta

9

20

10

Limonar

9

18

11

Cerrado de Calderón

8

12

10

Pedregalejo

8

15

11

Palo

7

15

9

For their part, Spaniards opt for apartments with two bedrooms and two bathrooms located in well-connected areas, with quality services and offering large leisure areas.

Puerto Marina and El Higuerón make up the most exclusive offer in Benalmádena, where the most valued addresses are sought by buyers with average prices above 3,000 euros / sqm.

The most sought-after types of properties are divided into two categories. On the one hand, attic-type flats or apartments with two or three bedrooms near the beach with a price of between 350,000 and 400,000 euros and, on the other, townhouses with prices of up to 650,000 euros are highly sought among foreign property seekers.

Property prices in Mijas (Figures in euros / sqm)

Property prices in Benalmádena Minimum

Maximum

Average

Calahonda-Atalaya

700

9.000

2.100

Riviera del Sol

700

5.400

1.800

El Faro/Calaburra

800

7.800

2.500

La Cala de Mijas

950

8.100

2.400

(Figures in euros / sqm)

Minimum Torrequebrada, Puerto Marina, Parque de la Paloma y Torremuelle

74 | Market Report 2018-19 Spain and Andorra

Maximum

Average

1.100

6.400

2.500

Arroyo de la Miel y Santángelo

900

4.400

1.800

Montealto y Benalmádena Pueblo

960

5.100

2.100

Capellanía-Higuerón

1.000

6.100

2.600

Market Trends. The Spanish Residential Market | 75

Marbella

Known as the European California, Marbella is a true real estate oasis synonymous with international luxury, not only because it is one of the most popular tourist destinations in Andalusia, but also because it has a high occupancy all year round. After a few years of business paralysis, the town has resurfaced as an investment destination for Europeans and clients from Arab countries.

Among the first, the ‘boom’ of Russian buyers has given way to more Spanish, German, Swiss, Belgian, Dutch, French and Scandinavians buyers with a rejuvenated profile that places the age range between 35 and 55 years.

Rental prices in West Marbella (Figures in euros / sqm)

Minimum

Maximum

Average

Guadalmina Baja

2.500

10.000

4.675

Guadalmina Alta

2.000

4.000

1.955

San Pedro de Alcántara

2.000

5.000

3.000

Los Flamingos

1.800

5.500

3.000

Golden Mile

Puerto Banús and Golf Valley

The territory that forms the Golden Mile of Marbella comprises five kilometres of coastal strip. Symbol of luxury, this is one of the most exclusive and highly-sought real estate markets in Europe, which has been noted in the increase in the number of homes purchased by investors.

Located between the city of Marbella and San Pedro de Alcántara, it is considered the largest luxury resort in southern Spain. The most requested and exclusive areas are Puerto Banus, Nueva Andalusia and La Zagaleta, all with average prices above 5,000 euros / square metres. More than 80% of buyers are foreigners, with an increase in arrivals from northern Europe. In Nueva Andalusia most are British and Scandinavian buyers.

The areas with the highest prices are Puente Romano, Sierra Blanca and Marbella Club, where the profile of the buyer is drawn by investors and families looking for a second home, preferably villas or apartments near the beach that are new and modern.

East Marbella - El Rosario West Marbella The amenities of this destination together with the excellent infrastructures, the international schools in the area and the security it enjoys make this area one of the most sought after in the country.

82% of buyers are foreigners, led by German, British and Scandinavians who look for a modern detached villa, preferably newly built that includes the latest technologies in home automation, with radiant floor heating, on surfaces of about 400 square metres and gardens of at least 1,200 square metres. These buyers especially value the southwest facing properties with views to the sea and the proximity to golf courses.

The properties most in demand are the newly built villas and the most sought after areas, Los Monteros, Río Real Playa and the urbanisations of Las Chapas and Marbesa.

Elviria also stands out, where Acacias Street registers an average price of 7,000 euros / square metres, well below the 25,000 and 10,000 euros / square metres in the first two mentioned areas.

Most of the clients are foreigners, up to 93% of purchases compared to 7% of Spaniards. Among the international buyers, the British, German, Nordics, French and the Netherlands also stand out.

Property prices in East Marbella – El Rosario (Figures in euros / sqm)

All these features combined with other amenities such as an elevator, a cinema room, a spa and open-plan kitchen place the prices of these villas between 2 million and 2.5 million euros.

In recent years, more and more investors have made purchases in this area. These buyers normally look for a property that’s in need of renovation in a good location so they can sell it for a profit later on.

76 | Market Report 2018-19 Spain and Andorra

80% of the buyers are foreigners, highlighting a growing interest in recent years from the Belgians, the Swiss and Norwegians.

Property prices in Golden Mile (Figures in euros / sqm)

Minimum

Maximum

Average

Nagüeles

1.500

5.500

3.200

Casablanca

1.500

6.000

4.000

Puerto Romano

1.800

6.000

3.800

Alto de Puente Romano

1.800

5.400

3.125

Sierra Blanca

2.800

9.000

6.200

Camajan

2.500

8.000

5.500

La Carolina

3.300

5.500

4.000

Loma de Marbella Club

1.500

3.650

2.700

Río Verde Bajo

2.500

4.150

3.300

The former prefer semi-detached houses and apartments, while buyers from northern Europe look for villas. In Puerto Banús, the demand for Arabs and French is very high.

Engel & Völkers foresees an increase of 25% in purchases in 2019.

Minimum

Maximum

Average

Rio Real

2.500

10.000

4.000

Property prices in Puerto Banús

Altos de Los Monteros

2.500

5.500

4.000

and Golf Valley

Bahia de Marbella

3.500

8.000

5.000

Los Monteros

4.500

25.000

6.500

Costabella

2.000

8.000

2.750

Chapas Playa

2.500

8.500

4.000

El Rosario

2.000

5.700

3.500

Elviria

2.000

7.950

3.750

Hcd las Chapas

3.500

15.000

4.500

Cabopino

2.500

5.000

3.500

(Figures in euros / sqm) Minimum

Maximum

Average

Puerto Banús

2.000

9.000

4.000

Nueva Andalucía

1.300

8.000

3.100

Benahavís

1.200

9.000

2.200

La Quinta

1.800

5.000

3.000

La Zagaleta

3.500

9.000

5.000

El Madronal

2.500

4.500

3.000

Market Trends. The Spanish Residential Market | 77

Galicia Northwest of Spain- Galicia

Gijón

Santander

La Coruña

Oviedo

La Coruña

Asturias

Cantabria La Coruña concentrates half of all business wealth in Galicia. Closely linked to the fashion industry, the herculine city also has one of the most important ports in Spain.

Galicia Pontevedra Vigo

Valladolid

The real estate market in La Coruña began its recovery in 2017 with a growth in prices that has been progressive throughout the past year and which is expected to be exponential throughout 2019, mainly driven by the increase in demand. An increase led by the variety in the type of properties, focusing on the city in apartments and flats, and in the municipality of Oleiros, in the outskirts, in detached homes both independent and attached to urbanisations.

The most expensive streets to buy a house in La Coruña are in Ciudad Vieja: Tabernas, Plaza de Azcárraga and El Parrote, with an average price of 3,300 euros / square metres, as well as in the Ensanche area, in the streets of Juan Flórez and Federico Tapia, where the properties reach an average cost of 2,700 euros / square metres. In this last area, in which the streets are located very close to each other, there has been a slow but progressive rise in prices compared to 2017. It is an area with increasing prices, mainly due to the high demand and the scarce supply.

Property prices in La Coruña

Castile and León

Galicia Cantabria Asturias Castile and León

78 | Market Report 2018-19 Spain and Andorra

The Ensanche and the centre of La Coruña are where the properties reach the highest average price with a maximum that reaches 4,000 euros. The profile of the buyer is that of an investor looking for a property to renovate and rent out later, as well as families with high purchasing power.

The most demanded by all of them are the penthouses with terrace and floors of 120 to 160 square metres.

(Figures in euros / sqm)

Minimum

Maximum

Average

Ensanche/Centro

2.000

4.000

2.600

Ciudad Vieja/Pescadería

1.900

3.700

2.300

753

1.369

1.150

Oleiros/Alrededores

The star property in the Old Town and Pescadería is one that has 150 square metres, renovated with great quality materials, with views of the dock and a price that varies from 350,000 to 380,000 euros. This area is preferred by people or young couples with a good income who value the character and uniqueness of the area. The greatest demand for properties is concentrated in apartments located in buildings with a high historical value of a minimum of 100 square metres, three bedrooms and without architectural obstacles.

Market Trends. The Spanish Residential Market | 79

Oleiros, which is just eight kilometres from La Coruña, is a residential municipality with numerous detached homes. It has a wide range of services and public facilities and a privileged natural setting that, together with its excellent road connection with the herculine city, makes this area the preferred place for many couples with children who opt for villas with three to four bedrooms, with about 300 square metres and a price of between 300,000 to 375,000 euros.

Rentals The increase in the prices of properties for rent in La Coruña has been remarkable in 2018. A rise that has gone hand in hand with an exponential rise in demand, with more and more foreign markets and young families choosing to rent before the possibility of being transferred by their companies. The foreigners have already taken up almost 25% of the rentals, with the British and Germans in the lead. On the other hand, the average time it takes for a property to be rented out has been reduced from one month to just three weeks.

The area with the highest rental prices is Ciudad Vieja where the properties have an average value of 8.90 euros / square metres and the most demanded streets are the ones that are well-connected and have lots of amenities. The Ensanche is more focused on families and Ciudad Vieja / Pescadería attract mostly young people.

As for Oleiros, the comfort of the urbanisations is highky sought, with private security, school transport and sports facilities. Most of the demand is centered on detached houses of 250 square metres, four bedrooms and with excellent road connections with the city.

Rental prices in La Coruña (Figures in euros / sqm)

Ensanche/Centro Ciudad Vieja/Pescadería Oleiros/Alrededores

Minimum

Maximum

Average

7

9,2

8,72

6,5

9,5

8,90

4

7,2

5,51

Vigo

The most populated city of Galicia stands out for its industrial character, as well as for being a top-class tourist destination thanks to a privileged climate and its renowned gastronomy.

The areas most in demand for buying a property are concentrated in Plaza de Compostela, Arenal, Casco Vello and Plaza Independencia, although the type of property that buyers look for varies. While the most popular properties in the first area is a flat of more than 200 sqm, with a minimum of four bedrooms; in Arenal, the search focuses on apartments of more than 100 sqm, with three bedrooms and a garage. For its part, the apartments and penthouses of between 100 and 150 square metres are the most in-demand in Casco Vello and in Independencia are the three-bedroom apartments with a garage for families with children.

Plaza de Compostela, where the average price of homes reaches 3,800 euros / square metres, is one of the most representative streets and where the flats are the highest prices in the city.

90% of buyers are Spanish compared to 10% of foreigners, among which the German, the British and the Swedish nationalities stand out.

Property prices in Vigo

The most sought-after property for rent in Vigo has about 50 square metres, a separate bedroom and a price of 450 euros per month. The downtown district is the most expensive to rent a property in Vigo. As far as property rentals go, Plaza de Compostela is the one that registers the highest prices, with an average price of 11 euros / sqm, and a high demand for apartments of 90 square metres with two bedrooms.

For its part, in Alcabre, Coruxo, Oia and Saiáns the demand is concentrated in chalets with pool and garden of 200 sqm at an average price of 9 euros / square metres, and in the areas of Nigrán and Baiona, where the average prices are set at around 8 euros / sqm. The apartments with three bedrooms and detached houses of up to 120 sqm are the most in-demand by tenants.

(Figures in euros / sqm)

80 | Market Report 2018-19 Spain and Andorra

Rentals

Minimum

Maximum

Average

Plaza de Compostela

3.500

4.200

3.800

Arenal-García Barbón

2.000

2.500

2.400

Venezuela-Corte Inglés

2.300

2.800

2.500

Progreso

1.800

2.200

2.000

Casco Vello

1.800

2.000

2.000

Plaza Independencia

2.200

2.700

2.500

Rental prices in Vigo (Figures in euros / sqm)

Minimum

Maximum

Average

Centro

7

15,38

9,5

Alcabre -Coruxo-Oia-Saiáns

6

12

9

Nigrán

5

11

8

Baiona

5

11

8

Market Trends. The Spanish Residential Market | 81

Cantabria Pontevedra

Pontevedra, considered to be the most comfortable city to live in Europe. It received the UN International Dubai Prize that recognises the best practices to improve the living conditions of its inhabitants. The New York-based Bloomberg Foundation has also praised this area’s urban model.

Santander

The most popular homes in Pontevedra are two to three bedroom apartments, with two bathrooms, parking space, storage room and well located, with a price ranging between 150,000 and 250,000 euros. The majority of the house buyers in this town are young couples.

The average price of property in this town is 1,275 euros / square metres, as in Poio, a separate coastal area of Pontevedra by the estuary. In Sanxenxo, located about 20 km from the capital, the price reaches 1,600 euros / square metres. The profile of the buyer in both Sanxenxo and Poio consists of a person looking for a second home or a buy-to-let property, mostly couples from 45 years of age with a medium to high spending power.

Rentals Property prices in Pontevedra (Figures in euros / sqm)

Minimum

Maximum

Average

Poio

1.050

1.500

1.275

Pontevedra capital

1.275

1.275

1.275

Sanxenxo

1.103

1.900

1.600

The coastal area is the most sought after in Pontevedra and where the most expensive streets are located to buy a house in. Specifically, Sanxenxo, on the first beach line of Silgar, and O Grove, in la Toja, are the addresses where an average price of 2,500 euros / square metres is reached.

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The most sought-after types of properties for rent in Pontevedra are drawn by flats with two or more bedrooms, two bathrooms, close to the centre and a montly rate of between 450 and 700 euros. This is a price that goes up if the property is located in the Barcelos area, which, with an average price of 7.5 euros / sqm, is the most expensive area.

Rental prices in Pontevedra (Figures in euros / sqm)

Minimum

Maximum

Average

Zona Barcelos (Pontevedra)

6

9

7,50

La Parda

5

6

5,50

Santander is one of the stately and elegant towns of the north coast of the country. Based around its natural port, it covers an area of 34 km2 on which sits a population close to 185,000 inhabitants. The nineteenth-century buildings, its spectacular bay and activities related to culture, leisure and tourism are the great attractions of the city and the basis of its economy.

The profile of the buyer in Santander can be divided in two. On the one hand, the couples between 40 and 55 years of age who make up 80% of the demand and, on the other hand, singles who look for properties with a low price range. The most demanded property is one that has three or four bedrooms with a price of around 400,000- 700,000 euros.

The most demanded areas of the city to buy a house in are the following four: the centre, Sardinero, Paseo de Pereda and Valdenoja. The centre is the most sought-after district; with old homes that mostly require mostly renovation. While Sardinero is the area near the best beaches and much in demand by foreigners and tourists and where the highest average price of the city is reached to maximums of 6,000 euros / square metres in streets like Reina Victoria, the most sought after location.

The majority of the customer’s is national, which accounts for 96% against 4% of the international buyers led by Mexicans, Americans, British and German.

Property prices in Santander (Figures in euros / sqm)

Centro

Minimum

Maximum

Average

900

2.600

1.700

Paseo de Pereda, on the other hand, is a neighbourhood much in demand by the buyer with high purchasing

Paseo de Pereda/Castelar

1.800

5.900

2.345

power, while the progress of the city of Valdenoja offers new homes and residential infrastructures within developments.

Sardinero

1.900

6.000

3.980

San Martín Menéndez Pelayo

1.080

2.880

1.550

Camilo Alonso Vega Cisneros

800

1.550

1.200

C. Burgos - C. Alta

600

1.400

1.160

C. Castilla Marqués de la Hermida

900

1.550

1.330

1.000

2.500

2.100

Valdenoja

Market Trends. The Spanish Residential Market | 83

Asturias

Castilla and León

Oviedo and Gijón

The Principality of Asturias, which has seven biosphere reserves in its territory, has its capital in Oviedo and its most populated municipality in Gijón. The first is the commercial, university and administrative centre of the principality with an economy focused on services; while the second is an eminently industrial city, which in recent years has given a greater role to tourism.

Although the average price of property in the two main Asturian cities does not reach 2,000 euros / square metres, it should be noted that in the most exclusive streets such as Juan Benito Argüelles, in Oviedo, and Professor Pérez Pimentel, in Gijón, they exceed 4,000 euros / square metres.

84% of home buyers in both municipalities are national. Foreigners, among whom none of the nationalities stand out, have opted to buy detached homes as a second residence.

The star property in Oviedo is one that is located in the centre and has between 150 and 200 square metres, three bedrooms, two bathrooms and a garage with direct access.

The profile of the buyer consists of young families in the city, although as we enter the old town, the profile is more that of an investor.

Valladolid

Property prices in Asturias (Figures in euros / sqm)

Minimum

Maximum

Average

Oviedo

1.474

1.641

1.625

Gijón

1.000

2.706

1.559

Llanes

1.454

1.677

1.517

Surroundings Located to the east of the principality, Llanes enjoys its

In Gijón, the most valued property is the detached house in the area of Somió with a price between 400,000 and 500,000 euros, of 250 square metres distributed in four bedrooms and three bathrooms, all on the same floor and on a plot of 1,000 sqm. In Paseo del Muro there is a demand for all types of properties between 250,000 and 500,000 euros provided they have a view of the sea and are a little high up. While in streets close to the sea the price range goes from 140,000 to 200,000 euros depending on the size of the property.

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proximity to the Picos de Europa and numerous beaches that, together with the great conservation of its monumental heritage, encourages an incipient tourism.

The detached properties between 250,000 and 300,000 euros, which could reach half a million euros if they have sea views, with 200 square metres distributed in three bedrooms, two bathrooms and located on a plot of 500 to 1,000 sqm, is the star property in Llanes defendant, mainly used as a second or third residence.

The capital of Castile and Leon, with just over 300,000 inhabitants, composes of nearly 60% of the population of the province, although in recent years there has been a continuous transfer to the 24 municipalities that together make them account for nearly 80% of the total province.

The trend of the real estate market in Valladolid is clearly bullish with increases in prices of around 5% in 2018. However, in a 100% national market, the recovery is focused on customers of a certain age looking to move to a new home and to a lesser extent in first-time buyers who are of young age.

Property prices in Valladolid (Figures in euros / sqm)

Minimum

Maximum

Average

Centro

1.910

3.150

2.350

Covaresa/Parque Alameda

1.325

2.150

1.653

Las Villas/Santa Ana

1.475

2.420

1.845

Pº Zorrilla - Cuatro de Marzo - Campo Grande

1.376

3.000

1.716

Parquesol

1.350

2.190

1.680

San Juan - Batallas Circular - Vadillos

1.350

2.290

1.685

Villa del Prado

1.640

2.700

2.050

The most in-demand types of properties in Valladolid are divided, on the one hand, into three or four bedroom homes for families with children who seek more space and location, amenities and facilities, and, on the other, in one or two bedroom apartments sought by owners of villas in the suburbs that want to return to the centre and by investors who want to rent them out.

The star property of Valladolid would be a high-rise flat or attic-style apartment, with three bedrooms and two bathrooms, with garage and storage, without architectural obstacles and a price around 240,000 euros. A price that would rise in the downtown area, the most sought-after in the city with prices that exceed 3,000 euros / square metres, mainly in the streets of Santiago, Miguel Íscar, Acera Recoletos, Paseo de Isabel la Católica and Paseo de Zorrilla.

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Basque Country Northeast of Spain

Hondarribia - Irún

Bilbao - Getxo

Vitoria - Gasteiz

San Sebastian

Basque Country Vitoria - Gasteiz Pamplona

Navarre

As the administrative capital of the Basque Country and seat of its Parliament, Vitoria is known as a friendly city to enjoy a comfortable life in. Replete with natural spaces that make up the Green Belt, in 2018 the exodus to central areas of the city has continued due to an economically settled buyer profile. It is mostly families looking for apartments with three bedrooms and a direct parking in areas near the centre of the town.

Beyond the centre, there are highly sought after neighbourhoods like Batán - Mendizorroza where you can find all types of homes from detached houses, townhouses and apartments with communal areas at an average price of 3,400 euros / square metres. However, the most exclusive homes located in Residential Areitio reach 5,500 euros / square metres, a price that competes very closely with central Paseo de la Música.

Other addresses in the city with maximum prices of 4,500 euros / square metres are Santa Bárbara and Renacimiento squares, both located in Desamparados. Also around 4,000 euros / sqm are the avenue of Gasteiz and adjacent streets such as Adriano VI, Los Pintores, Paseo de la Música, as well as Paseo Cervantes, San Prudencio Street and Paseo del Batán.

Basque Country

At Engel & Völkers, we have noticed a great demand for attic-type properties of about 130 sqm, with large terraces, southwest orientation, garage with direct access and all the fully maintained communal areas.

Navarre 98% of the buyers are nationals compared to 2% of foreigners who come from the European Union, while 100% of the sellers are national, mostly from Vitoria.

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Market Trends. The Spanish Residential Market | 87

San Sebastian

Rentals

Property prices in Vitoria (Figures in euros / sqm) Minimum

Maximum

Average

Centro

1.750

5.000

2.800

Desamparados

1.600

4.500

2.700

Lovaina/Aranzabal

2.200

6.000

3.800

Avenida/San Martín

2.300

4.000

3.000

Batán/Mendizorroza

1.750

5.500

3.400

Armentia

2.400

4.200

3.000

Vitoria, in addition to being the seat of the Basque Parliament and all the institutions, has a strong industrial structure that generates a high turnover of workers who are in a high socioeconomic level. However, most of them opt for purchasing a property rather than renting due, on the one hand, to the low supply in the rental market and, secondly, because most of the homes that are rented out but not renovated.

The greatest demand is focused on apartments with a minimum of two bedrooms, modern aesthetics, and for a price of 850-900 euros per month. This is a price that falls within the average range of the city between the maximum of 1,500 euros for the villas in residential areas and the minimum of about 650 euros per month that are paid for a studio in the area of the old town.

Internationally recognised for the elegance of its bay, its film festival, the charm of its beaches and gastronomy, the capital of the province of Guipúzcoa is a small town that makes it easy to get around in its streets, which have big city infrastructures. The most in-demand areas to buy a home are Área Romántica, Miraconcha, Ondarreta, Casco histórico, Gros and Aiete.

Known as one of the most expensive cities in Spain, San Sebastian concentrates its most exclusive addresses in Centro and Miraconcha, where the price exceeds 10,000 euros / sqm.

The houses located in the central streets of Hernani and Peñaflorida, in the heart of the city and overlooking the sea, reach up to 12,000 euros / sqm; while in the streets located in front of the bay of La Concha, Miraconcha and Zubieta they are around 10,000 euros / sqm.

Despite being a cosmopolitan city, only 6% of homebuyers in San Sebastian are foreigners, who are mostly Americans, French, British, German, Arabs, Swiss and Russians.

Property prices in San Sebastián (Figures in euros / sqm)

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Minimum

Maximum

Average

Miramón

4.000

7.000

5.500

Gros

6.000

8.000

7.000

Berio

5.000

7.000

6.000

Miraconcha

9.000

11.000

10.000

Centro/Área Romántica

6.000

10.000

8.000

Ondarreta

4.000

7.000

5.500

Parte Vieja

5.500

7.000

6.250

Aiete

4.500

6.000

5.250

Intxaurrondo

3.500

4.500

4.000

Rentals The star property for rent in San Sebastian focuses on two types: apartments of about 50 sqm and two-bedroom apartments between 80 and 100 sqm. Both types are rented by young couples or temping professionals as well as families or elderly couples seeking properties in the flatter areas of the city.

98% of the rentals are taken up by domestic customers compared to 2% of international clients.

Rental prices in San Sebastián (Figures in euros / sqm)

Minimum

Maximum

Average

Centro

16

27,7

21,5

Ondarreta

15

24

19,5

Market Trends. The Spanish Residential Market | 89

Hondarribia – Irún

Located less than 25 km from San Sebastian and full of history that stems from the war it experienced due to its border location with France, these two municipalities present an attractive real estate sector, which is why Engel & Völkers has started operating in this area.

Bilbao - Getxo

For its part, Irún is an important hub of communications with Europe that also stands out for its commerce, tourism and gastronomy. This is why Engel & Völkers is currently offering properties in the most prime areas such as Mendibil, with an average price of 4,200 euros / sqm.

Property prices in Hondarrabia - Irún (Figures in euros / sqm)

Hondarribia is known to be one of the most beautiful towns in Spain. A holiday destination par excellence, the real estate market is highly seasonal both in type and customer profile. Although the demand is focused on properties near the sea of about 100 sqm distributed in three bedrooms and a maximum price of 600,000 euros, it can be divided into four according to the type of buyer: • Flats facing the sea in the most premium area that can reach one million euros. The buyers are foreign or Spanish customers who usually spend the summer in Hondarribia and decide to settle in the municipality.

• Flats in the old part bought as an investment by national or foreign couples.

Minimum

Maximum

Average

Hondarribia Norte

2.800

4.400

3.500

Hondarribia Centro

2.900

5.100

3.900

Hondarribia Sur/Parte Vieja

2.600

3.600

3.152

Irún

1.727

4.500

2.654

Rentals The rental market in these municipalities is divided equally between national and international clients, although in Hondarribia it is more about holiday rentals rather than all-year-round.

The demand varies more depending on the price than the type of housing. Thus, Spaniards looking for a house as their main residence and foreigners who look for a property for work reasons prefer flats of two or three

However, among the luxury holiday rentals, the biggest requirement is that the property, in many cases villas with some land, must be located near the sea.

• Golf Villas, highly sought by foreigners with high purchasing power and national clients looking for a quiet residential area.

Rental prices in Hondarrabia - Irún

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After a few years of paralysis in its real estate market, in 2018 there was a steady recovery that paved the way for the construction of new homes on the scarcely available plots of land in the city.

A high percentage of buyers seek apartments in the centre with up to 120 sqm distributed in three bedrooms and with a garage. Although there is a clear preference for properties less than 10 years old, there are clients who value the aesthetics of the building more over practical aspects, sacrificing a certain comfort for uniqueness and the wide spaces. Also worth noting is the high demand for attic-type flats and terraces, which is very difficult to fulfill due to the low supply.

The profile of the buyer of housing in Bilbao is that of a family with children and an age between 45-55 years.

On the other hand, the clients that request the most singular properties (in historical buildings, mainly located in the Ensanche of Bilbao) are independent professionals or professional athletes, all with great purchasing power and in most cases to be occupied by two people.

Property prices in Bilbao - Getxo (Figures in euros / sqm)

Minimum

Maximum

Average

Abandoibarra

5.000

6.500

5.300

Indautxu

3.700

4.000

3.850

Ensanche

3.790

4.480

3.900

Casco Viejo

2.125

3.400

2.300

Neguri

4.800

8.450

5.900

Las Arenas

2.500

5.100

3.200

Algorta

2.500

3.050

2.900

Zona de costa cercana

3.125

4.800

3.300

Plaza Euskadi underwent an important transformation between 2005 and 2009, going from being a non-urbanised area to one of the most modern and highly sought place in the city, with prices at the time of construction that in some cases exceeded 8,000 euros / sqm. At present it remains the most expensive address in the city with average prices at 6,500 euros / sqm, followed by Gran Vía (5,500 euros / sqm).

These are prices that compete with Getxo’s most exclusive addresses such as Avenida de Neguri, Churruca and Zugazarte Avenue. To be precise, Neguri is the premium area par excellence, where there is an abundance of large-size apartments, in excess of 300 sqm.

bedrooms for about 700-800 euros per month.

• Basque hamlets, highly sought by investors or entrepreneurs who want to convert these properties into rural houses or restaurants.

With an average price of 3,500 euros / sqm, in Hondarribia there are two very exclusive addresses that far exceed this price: Paseo Butrón and Higuer Bidea with prices that exceed € 5,500 / sqm.

Named as the best European city in 2018 by the British Academy of Urbanism, Bilbao is an urban reference internationally recognised for uniting the strength of an avant-garde led by the Guggenheim Museum with an industrial past based on its economy.

(Figures in euros / sqm)

Hondarribia Irún

Minimum

Maximum

Average

9

19

13

9,38

17,56

11,67

Market Trends. The Spanish Residential Market | 91

Navarra Rentals

Rental prices in Bilbao - Getxo (Figures in euros / sqm)

The demand for rental properties in Bilbao focuses on the areas of Ensanche and Abandoibarra. 90% of the clients look for recently built unfurnished apartments, except for those that move to the city for a specific time, and specifically require the property to come with a parking space and be located close to the centre.

95% of the market is owned by Spaniards compared to a mere 5% of foreigners, mainly British and German who have moved to Bilbao due to the recent purchase of Gamesa by Siemens.

The star property for rent would be a flat of about 200 sqm in Plaza Euskadi distributed in 4 bedrooms, 3 bathrooms and living room overlooking the Gugenheim Museum, in a 10 year-old building and with all kinds of facilities and services. The price of such apartment with parking space would be about 2,850 euros.

Minimum

Maximum

Average

Abandoibarra

11

13

12

Indautxu

11

19

17

Ensanche

14

18

17

Casco Viejo

11

13

11

Neguri

14

20

16

Las Arenas

12

15

13

Algorta

10

12

11

In Getxo, the rental portion is shared between 80% of Spaniards and 20% of foreigners of the same nationalities as in Bilbao. In both cases they seek apartments of less than 150 sqm, near the sea with a garage.

Pamplona

World-famous for the Sanfermines, the capital of the Comunidad Foral de Navarra is a modern and welcoming city full of history that enjoys prestigious health care and educational services. Located in a strategic enclave that is part of the road to Santiago, Pamplona is just an hour away from the beaches of San Sebastian and some of the most emblematic sites of the French coast as Biarritz and San Juan de Luz. The Navarre real estate market began a strong revival in 2017 until it became one of the autonomous communities that grew the most in the number of property purchases, with Pamplona leading the way.

Property prices in Pamplona (Figures in euros / sqm)

Minimum

Maximum

Average

Casco Viejo

1.200

3.500

1.500

1º Ensanche

2.100

3.800

2.430

2º Ensanche

1.800

3.500

2.080

Milagrosa

1.250

2.200

1.470

Iturrama

2.100

3.200

2.600

Mendebaldea

2.100

3.000

2.340

Barañain

1.650

2.100

1.860

San Juan

1.550

1.900

1.730

Berrioplano/Artica

1.350

1.900

1.580

National customers account for 80% of the purchases made through Engel & Völkers in Pamplona, compared to 20% of the international ones led by the French, British, German and South Americans. Both of these profiles look for two types of property: • Flats between 170-200 sqm distributed in three or four bedrooms, two bathrooms and in an excellent location, for a price between 350,000 and 500,000 euros.

• Chalets of around 300-350 square metres, located on plots of between 500 and 700 sqm, for a maximum price of 550,000 euros.

Carlos III and Monte Monjardín, both located in the second stretch, are the most expensive addresses in the city with average prices above 2,500 euros / sqm, followed

by Paseo Sarasate in the old quarter and Roncesvalles Street in the first extension.

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Market Trends. The Spanish Residential Market | 93

Tenerife Canary Islands

Adeje

Canary Islands

Tenerife

Located in the southwest of Tenerife, Adeje has become one of the preferred holiday destinations in Europe. Tourism is the basis of the economy of this municipality with more than 26 kilometres of coastline where 82% of the clients from Engel & Völkers who were looking for a property in 2018 were foreigners. Of these, 55% were German, Swiss and Austrians, compared to 20% of Britons and 10% of Belgians, Dutch and French. The rest came from other countries.

The areas most in demand by international buyers are Costa Adeje, La Caleta and Golf Costa Adeje, where prices have risen by 20-30% in the last two years and continue to rise. Precisely in Golf Costa Adeje the most expensive addresses of the coast are located with average prices between 5,000 and 6,000 euros / sqm.

Regarding the most sought-after types of homes, it is worth highlighting the distinction according to the profile of the buyer: • Apartments of about 80 sqm with one or two bedrooms, two bathrooms and terrace overlooking the sea and near the tourist resorts, with prices around 300,000 euros to 500,000 euros, much sought after by retired couples looking for a holiday home to use between the months of October and April.

• Detached houses or villas with private pool, garden, sea views, near the golf course starting from 150 sqm, with prices between one and two million euros and a family profile of marked international character.

• Townhouses of about 100 sqm in the Costa Adeje area, with prices between 300,000 and 600,000 euros for residents of the island.

• Finally, the properties under the market value that require renovation, resales, and farmhouses with land as well as holiday lets are highly sought by investors.

Property prices in South Tenerife (Figures in euros / sqm)

Minimum

Maximum

Average

Costa Adeje

1.800

5.000

3.500

Golf Costa Adeje

3.500

6.000

5.000

Madroñal/Roque del Conde

1.500

2.700

2.500

Palm Mar

1.400

4.000

2.000

San Eugenio alto

1.600

3.100

2.500

Guia de Isora/Abama Resort

4.000

6.000

5.000

Callao Salvaje/Playa Paraiso

1.700

2.500

2.200

225

462

360

Los Gigantes

1.500

3.000

1.800

La Caleta

2.200

5.000

3.500

Golf Costa Adeje Terrenos

Canary Islands

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Market Trends. The Spanish Residential Market | 95

Balearic Islands Balearic Islands

The real estate market of the Balearic Islands has always been an object of desire for European investors seeking both a first home and a holiday home. Engel & Völkers has 22 stores in the archipelago, from which it controls approximately 30% of the real estate opera-

Menorca

tions carried out by foreigners in the islands. In 2018, 56% of purchases were hoarded by German, followed

by British (13%) and Spanish and Scandinavian, which accounted for 9% of home purchases.

Mallorca

Palma de Mallorca

Palma’s Surroundings & Son Vida

The capital of Majorca, one of the best-connected Mediterranean cities, is the main focus of foreign investment where the volume of purchases brokered by Engel & Völkers over the past five years has doubled to close to 1,200 million euros in 2018.

Three golf courses, an international school, the best hotels and the proximity to the city centre and the airport characterise Palma, where Son Vida is the most exclusive area of this resort. The houses near the golf courses and / or overlooking the sea are the most demanded by international buyers, mainly German, British and Swiss, who seek luxury properties in the area. The average price of a villa in Son Vida has risen again to 4.7 million euros.

Mallorca

Balearic Islands Ibiza

The most popular homes are the penthouses and apartments with terrace or balcony located in the old town and Portixol, where the average price stands at 800,000 euros. There is a demand for properties below 500,000 euros and between 1 million and 1.5 million euros, which can not be covered by the scarce supply in these price ranges. However, in Playa de Palma, where the average price is around 500,000 euros, there are interesting buying opportunities.

Balearic Islands

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West Mallorca The western part of Mallorca is one of the most preferred resorts by the British to buy a holiday home in. But it is also the German, Danish and Austrians who are buying more and more homes in the west of the island.

Dotted with picturesque villages in the heart of the Sierra de Tramuntana, clients look for spacious houses, with swimming pool and with good views. The average price in the best locations such as Deià and its surroundings is around 3.5 million euros, while in the surroundings of authentic and traditional towns such as Fornalutx, Biniaraix and Sóller the average prices are between 1.5 and 2.5 million euros.

Market Trends. The Spanish Residential Market | 97

Mallorca Southwest

Central Mallorca

Calm coves, rugged landscapes and tourist complexes characterise the southwest of Mallorca, where buyers coming mainly from Germany, Great Britain, Switzerland and Spain look for properties in new buildings with sea views and a high architectural and technological quality.

Also highly sought after are the exclusive villas in Puerto de Andratx and in Bendinat, where the average price reaches four million euros.

The heart of the island plagued by vineyards, fields of almond and olive trees and with a panoramic view of the Sierra de Tramuntana, is one of the favourite areas for the German, who again dominated most of the house purchases in 2018 in an exercise where a growing interest has been observed by the French buyer. The greater popularity of the region has had a direct impact on volume of purchases, which has almost tripled since 2014 to reach 300 million euros. In the best locations such as Santa Maria and Alaró the average price of the farmhouses with modern facilities amounts to 1.8 million euros.

South Mallorca In the south of the island you can find both luxury villas in front of the sea with views of the bay of Palma, as well as rural properties near the sea that still provide their owners with absolute privacy. This variety of housing typology extends the range of buyers who, although they come mainly from Germany, also come from France, Spain and the Netherlands. The villas along the sea in the surroundings of Cala Blava have an average price of 1.9 million euros, while in the inner region of LLucmajor, the farmhouses with large plots of land have an average price of 1.4 million euros.

In the northeast of Mallorca, between Colònia Sant Pere and Porto Cristo, you can still find hidden coves and small ports in areas of unspoilt nature that are a real attraction for German-speaking buyers. The villas by the sea and the farms in the interior are the most appreciated properties that, in the best locations around Colònia Sant Pere and Artá, present an average price of around 1.7 million euros.

Southeast Mallorca

North Mallorca

The traditional villages alternate with elegant marinas in the southeast of Mallorca, where a stable development of the real estate market can be observed among a mainly German customer profile that focuses on semi-modern and modern

The typical Mallorcan villages in spectacular mountain enclaves and beautiful coastal towns with beaches and marinas make up an increasingly attractive market for buyers from Germany, Great Britain and Spain. The tra-

properties, with lots of light and wide spaces. In the most sought after area between Cala LLombards and Porto Colom, as well as around Santanyí, the average price stands at around 1.6 million euros.

ditional estates, the modern and minimalist villas, the apartments and the properties with rental license in the surroundings of Alcúdia and Pollensa are the most coveted. The price range in these areas, although it varies a lot depending on the sea views and facilities, is between 1.2 and 2.5 million euros.

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Northeast Mallorca

Menorca

Declared as a Biosphere Reserve by UNESCO, the easternmost island of the Balearic Islands has only recently-built properties and 95% of homes for sale are resales. The most in-demand properties are those located on the seafront and those located in the inner region of the island, mainly the typically Menorcan country houses on large estates with panoramic views.

The price of villas in coastal towns ranges from a range between 900,000 euros and three million euros, while cottages have an average price of 2.4 million euros. For its part, the cost of urban houses in the two main cities of the island, Mahón and Ciudadela, moves within a very wide range that ranges from 300,000 euros to 1.5 million euros.

The profile of the Engel & Völkers client in Menorca is that of a person with a high purchasing power who seeks tranquility, security, nature and, above all, a lesser agglomeration than in other islands of the archipelago.

The nationalities of buyers are changing from a majority British presence to an increasingly high number of French and German customers.

Ibiza

The third largest island in the Balearic Islands, known for its nightlife and its quiet coves, maintains the upward trend in prices in all segments of the real estate market due to the lack of quality properties.

The renovation works on the main road between Ibiza and Santa Eulalia, whose completion is scheduled before the start of the 2019 summer season, will attract new buyers to the new projects that are being built in high standing urbanizations with multiple services.

The international buyer continues to monopolize the Ibicenco market, led by the German, along with a profile of a well-off Spanish client that is still customary on the island. The most popular types are the villas and farms that, in the best locations in the south, reach an average price of 3.8 million euros. In the premium areas of the city of Ibiza you can find apartments for one million euros.

Market Trends. The Spanish Residential Market | 99

New-builds Barcelona

The high prices of new-build properties, together with a decrease in the purchase of this type of property by foreigners have caused a moderate fall in sales of new properties. A reduction that has also originated in the lower demand for investment of this type of product.

Madrid

The new-build market is experiencing a period of growth where a significant change in the profile of the buyer is observed. If the main type of housing was mostly sought by young couples or families who buy to meet the need to expand their home or family, nowadays there is an increase in high-income customers seeking housing in areas prime with technological features (home automation, connectivity, etc.) that include services such as gym, pool, etc., which are not common in the city centre.

Looking ahead to 2019, it is foreseeable that prices will remain stable in the first half of the year, and the average price growth will be lower than 5% in the general calculation of the year, provided there won’t be any external factors to threaten the strengthening of the real estate market’s recovery during the first 6 months of the year.

The most significant property offers

by Engel & Völkers in Madrid

This modification together with the growing interest in new-builds among foreigners (Latin Americans, Central Europeans ...) has boosted prices in the most premium offers in Madrid such as those located in the neighbourhoods of Salamanca, Recoletos and Cortes. This upward trend will remit due to the stabilisation in the demand for properties with areas of more than 150 sqm.

However, the demand will remain in these areas but in lower volumes, between 50 and 100 sqm, where the average prices are at 5,000-6,000 euros / sqm. It will also continue the positive trend in small housing developments of 50-80 sqm in other areas such as Tetuán, with prices of 3,500 euros / sqm, as well as in the southern and expansion areas of Madrid, where home buyers are looking for 90-120 sqm properties with prices around 2,500-3,000 € / sqm.

In this regard, it should be noted that more than a third of the current new-builds in the Madrid Capital is concentrated in southern neighbourhoods such as Vicálvaro, Vallecas, Carabanchel and Villaverde.

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(Figures in euros / sqm) Residential Projects

District or Region Neighbourhood Min.

Carranza 15

Centro

Malasaña

6.900 8.400 7.449

Deyanira 59

San Blas

Rejas

3.350 3.350 3.350

Esquina Becquer

Salamanca Castellana

Max.

Avg.

9.800 13.700 11.900

Fuencarral 142 Chamberí

Trafalgar

6.800 9.400 7.500

Los Madrazo

Centro

Cortes

7.670 8.670 8.170

Zorrilla19

Centro

Cortes

7.637 12.308 9.881

Carlota O'Neill 42

Ciudad Lineal

In the medium term, if the situation does not change, the real problem for the new-builds will be the scarcity of supply derived from the modification of the General Metropolitan Plan of Barcelona. The reform requires 30% of the new offers and large renovations to be reserved for protected housing. With this new situation, the developers will have more facilities to build in locations in the periphery where they will also obtain greater profitability, which will reduce the supply of projects in the capital, with the consequent rise in prices.

A 100 square metre house for 580,000 euros The average price of a newly built property in Barcelona marketed by Engel & Völkers is 580,000 euros, for a house of almost 100 sqm with two or three bedrooms. Penthouses maintain their position as the star properties of these developments followed by the ground floor flats with garden and the middle floor flats with large terraces. 48% of the clients opt for a mortgage due to the favourable lending conditions by financial institutions and in many occasions they can remortgage the property through another lender if they are offered a better rate.

61% of new-build property buyers in Barcelona are national compared to 39% foreign. Among foreigners, the presence of French citizens, who carry out 26% of the purchases, followed by the Swiss who make up 13% of the purchases, Turks 10%, Americans 8%, while the rest is divided between British, Belgians and other nationalities.

Engel & Völkers currently has 164 new developments in Barcelona, with a total of 626 homes for sale in its portfolio.

The most significant property offers

by Engel & Völkers in Barcelona

San Pascual

(Figures in euros / sqm)

7.060 7.862 7.543

Residential Projects Neighbourhood

Min.

Max.

Avg.

Sant Gervasi

Turó Park

6.860

13.510

10.190

Eixample

Fort Pienc

5.820

7.160

6.490

Horta-Guinardó

Horta

2.900

3.290

3.100

Sants-Montjuïc

Poble Sec

6.060

6.130

6.090

Gràcia

Gràcia

7.550

7.900

7.730

Market Trends. The Spanish Residential Market | 101

Catalonia

Costa Blanca

Sitges

Costa Brava - Lloret de Mar

Benidorm - Villajoyosa

Alfaz del Pi

The new-build homes with greater demand in Sitges are apartments with two to three bedrooms, two bathrooms, 75 sqm and a terrace of at least 10 square metres as well as penthouses of 100 sqm with a price of 450,000 euros.

65% of buyers for the newly built homes in Sitges are foreigners, of which 30% are British, 20% French, 10% Dutch and North American. The English and French look for apartments between 70 and 80 sqm while the Dutch and Americans seek larger homes of up to 250 sqm.

The offer of new construction in the south of Costa Brava is much lower than the demand, where there are only three developments currently. One of them, located in Paseo Maritimo de Lloret de Mar, has been sold by Engel & Völkers at an average price of 5,500 euros / sqm, within the range between 4,000 and 6,000 euros / sqm and seafront apartments in the area.

In Benidorm, there is hardly any new-build properties due to the lack of land. Currently, the only developments are taking place in the Poniente area where supply does not cover demand and drives prices upwards. This situation directs the demand to the ongoing developments in Villajoyosa, where there is still some land to build on, even on the beachfront, which is the most demanded location by a foreign buyer profile that accounts for 65% of purchases compared to 35% of Spaniards.

The residential area of Playa El Albir remains the most sought-after by buyers, although at present the offer exceeds demand, since the four current projects will be joined by eight new ones this year.

70% of the buyers of new-build properties on this coast is national compared to 30% of foreigners, mostly Russians, German and French.

The most significant property offers

by Engel & Völkers in Sitges The most significant property offers

(Figures in euros / sqm)

by Engel & Völkers in Lloret de Mar Residential Projects Neighbourhood

Min.

Max.

Avg.

Proyecto Sant Antoni

2º Linea

5.500

6.500

6.000

Residential Projects Neighbourhood

Min.

Max.

Avg.

Proyecto Plana EST

Plana Est

4.000

4.500

4.300

Infinity

4.600

6.700

5.500

4.000

4.500

4.300

Proyecto Vallpineda Vallpineda

(Figures in euros / sqm)

Primera Linea

Engel & Völkers is selling properties in two exclusive locations: Villas Estocolmo and Varadero. The first, located in the centre of Benidorm, consists of four independent luxury villas equipped with private pool, garage, garden and home automation at an average price of 815,000 euros. The second, on the beach front of Varadero de Villajoyosa, offers seven apartments with prices between 290,000 and 595,000 euros.

The most significant property offers

by Engel & Völkers in Alfaz de Pi (Figures in euros / sqm) Residential Projects

District or Region Neighbourhood Min.

Sion sol inter.

Polop La Marina Polop

1.550 1.800 1.645

Larcosta

Polop La Marina Polop

1.800 2.100 1.923

Dimalbir

Albir

Albir

2.100 2.500 2.200

by Engel & Völkers in Benidorm - Villajoyosa

Europasol

Albir

Albir

1.500 1.850 1.600

(Figures in euros / sqm)

Llobarro

Albir

Albir

2.200 2.500 2.250

Saga S.L.

Albir

Albir

2.720 2.950 2.820

The most significant property offers

Pyrenees Lérida and Gerona Valle de Arán Contrary to what happens in large cities, new construction projects in the area are sold once completed. Engel

80% of the buyers are foreigners from the United Kingdom, Germany, Norway and Holland, while only 20% of the purchases are made by Spaniards, mainly in the Polop area.

Residential Projects Neighbourhood

Min.

Max.

Avg.

Villas Estocolmo

Rincon de Loix

1.829

2.047

1.938

Varadero

Villajoyosa

1.853

2.207

2.030

Max.

Avg.

& Völkers is currently selling a new build project in Vielha consisting of apartments with two, three and four bedrooms. The average price of the new-build project in Vielha is 3,300 euros / sqm.

The most significant property offers

by Engel & Völkers in Valle de Arán (Figures in euros / sqm)

102 | Market Report 2018-19 Spain and Andorra

Residential Projects

District or Region

Neighbourhood Average

5éh

Vielha

Sobernedo

3.300

Market Trends. The Spanish Residential Market | 103

Galicia

Asturias

Pontevedra There are three new-build properties that Engel & Völkers is currently marketing in Pontevedra with the forecast of reaching eight in the coming months. Located in the centre of the city, the newly built star properties are three-bedroom apartments and up to 130 sqm. On the coast, the most sought after are the properties of two bedrooms next to the beach.

La Coruña Engel & Völkers currently has three new residential development projects, to which two more will be added in the coming months. In all of them, a similar product is offered for homes with one to four bedrooms, with high quality materials and facilities, parking space and storage room, whose buyer profile can be distinguished in three types. These are young couples with children under the age of five, investors who buy the house to rent it out and people who live in other cities of the province and seek a second home.

The Rosalía de Castro properties for sale in the centre of the city of Pontevedra are the ones that reache the highest average price, with 2,896 euros / sqm, while in Sanxenxo El Mirador de Seixalvo, six villas of 290 sqm with their own swimming pool and high quality materials at an average price of 1,600 euros / sqm are for sale.

The centre of cities is the area with the greatest demand for new-build homes in the Asturian community.

Everything that is built in these areas is sold as off-plan, like the 12 that Engel & Völkers is currently marketing in the centre of Gijón with prices ranging from 3,208 to 3,973 euros / sqm and the three projects in the centre of Oviedo with an average price between 2,010 and 3,713 euros / sqm.

Outside the two big cities, La Quinta de Luanco stands out, 20 homes designed by the architect Joaquín Torres with views of the Cantabrian Sea and with an individual pool that Engel & Völkers is selling exclusively.

The most significant property offers

The most significant property offers

by Engel & Völkers in La Coruña

by Engel & Völkers in Pontevedra

The most significant property offers

(Figures in euros / sqm)

(Figures in euros / sqm)

by Engel & Völkers in Asturias

Residential Projects Neighbourhood

Min.

Max.

Avg.

Náutica

2.479

3.247

2.863

Riazor

Residential Projects

Vigo

Jardines de Santa Cruz

Oleiros

2.957

3.547

3252

Edificio Artium

Ensanche

3.673

2.073

2.873

In total, Engel & Völkers is selling 39 new construction homes in the city of Vigo, with an average price ranging between 2,500 and 3,000 euros per sqm. The most sought after new-build home is one that has three bedrooms, garage and storage room, and with a price of around 300,000 euros.

District or Region Neighbourhood Min.

(Figures in euros / sqm) Max.

Avg.

Casas da Nova Pedra Pontevedra La Parda

1.400 1.800 1.600

Mirador de Seixalvo

Sanxenxo

1.361 1.460 1.411

Rosalía de Castro

Pontevedra Centro

2.749 3.042 2.896

Veiga Mariño

Pontevedra San Blas

1.895 1.945 1.945

Seixalvo

Residential Projects

District or Region Neighbourhood

Min.

Max.

Avg.

Emilio Tuya 40 Gijón

La Arena

2.777

3.200

2.962

La Quinta de Luanco

Luanco

2.374

3.262

2.815

Luanco

The most significant property offers

by Engel & Völkers in Vigo (Figures in euros / sqm)

104 | Market Report 2018-19 Spain and Andorra

Residential Projects Neighbourhood

Min.

Max.

Avg.

Calle Ecuador

Centro

3.000

3.700

3.500

Edificio Cervantes

Centro

2.700

3.000

2.800

Market Trends. The Spanish Residential Market | 105

Basque Country

Andalusia

Canary Islands

The most significant property offers

by Engel & Völkers in East Marbella (Figures in euros / sqm)

Bilbao - Getxo

Marbella

At this moment there is hardly any new-build properties in Bilbao and the few that are sold directly by the company, in most cases under a cooperative regime. These are high-rise buildings, equipped with garages and storage rooms in areas far from the centre.

The new-build construction has re-emerged with force in recent years in Marbella and Engel & Völkers is a leading player in the marketing of homes that are highly sought by mostly foreign buyers.

Something similar happens in Getxo, where the number of new construction projects in the area is very low and there is still a stock of houses that were completed more than two years ago. Engel & Völkers is exclusively selling two renovated buildings, among which the comprehensive renovation of an emblematic building designed in 1906 by the architect Manuel Smith in which 10 luxury homes on Avenida de Leioa, 2, stands out.

The most significant property offers

by Engel & Völkers in Bilbao - Getxo

Golden Mile Symbol of luxury, the Golden Mile of Marbella comprises 5 kilometres of coastal strip along which one of the most exclusive and sought after real estate markets in Europe is located. The areas with the highest prices are Puente Romano, Marbella Club and Sierra Blanca, where the profile of the buyer is drawn by investors and families looking for a second home, preferably villas or apartments near the newly built beach. 80% of buyers are foreigners, highlighting a growing interest in recent years by the Swedish, Belgian, Swiss and Norwegian.

Residential Projects Neighbourhood

Min.

Max.

Avg.

Los Monteros

Marbella Este

2.628

7.000

3.006

Río Real

Marbella Este

3.125

4.862

4.230

Cabopino

Marbella Este

3.187

3.773

3.259

West Marbella The offer of new construction in the area of West Marbella and Benahavís, where some of the most exclusive golf clubs in Europe are located, such as La Zagaleta and Los Flamingos, combine the modern design of apartments, penthouses and latest generation villas, with unique views over the coast.

Properties between 80 and 90 square metres have an average price of 270,000 euros, although the most exclusive are at an average price of 320,000 euros. For its part, a three-bedroom apartment of about 130 sqm in Benahavis can reach up to 600,000 euros.

The most significant property offers

by Engel & Völkers in West Marbella

(Figures in euros / sqm)

(Figures in euros / sqm)

Residential Projects Neighbourhood

Min.

Max.

Avg.

The most significant property offers

Avenida de Leioa

Neguri

6.800

8.500

7.000

by Engel & Völkers in Golden Mile

Aiboa 38

Neguri

5.000

5.000

5.000

(Figures in euros / sqm) Residential Projects Neighbourhood

Min.

Max.

Avg.

The Collection

Milla de Oro

3.144

4.854

3.548

Benalús

Milla de Oro

3.664

6.013

4.666

La Meridiana Suites Milla de Oro

4.290

5.870

4.442

East Marbella The most demanded properties are the villas and the most sought-after areas are Los Monteros, Río Real and the urbanisations of Las Chapas and Marbesa. Also very demanded and at more affordable prices, Cabopino stands out, with its picturesque marina and average prices of 3,259 euros / sqm.

106 | Market Report 2018-19 Spain and Andorra

Tenerife - Costa Adeje The new-build prices in Tenerife range from a maximum of 8,000 euros / square metres that are reached in the Villas de Tenis in Abama Resort to the minimum of 1,500 euros / sqm in Sotavento property offers, in Grandadilla de Abona. The first is one of the most characteristic offers marketed by Engel & Völkers in Tenerife. Located on the Teide slope and overlooking the Atlantic Ocean, this hotel resort offers several new construction projects, from exclusive villas to turnkey luxury apartments. Since 2012, Abama Resort has offered several projects such as Las Terrazas, Casa del Lago and Belleveneu and in the first half of 2018 the new Phase IV project of Abama was presented with Arcadias and Villas de Tenis.

Among the new-build offers in the island Aqua Suites also stands out, which is a new project located in one of the best areas of the island, in Los Gigantes. It is a very small community, with only 20 units. The prices of the properties depend on the location and size and range between 550,000 and 685,000 euros. It is expected that its construction will be completed by mid 2020.

Residential Projects

Neighbourhood

Min.

Max.

Avg.

Guadalmina Baja

Marbella Oeste

2.500

5.500

4.675

Guadalmina Alta

Marbella Oeste

1.955

4.000

2.000

San Pedro de Alcántara Marbella Oeste

2.000

5.000

3.000

The most significant property offers

Los Flamingos

1.800

5.500

3.000

by Engel & Völkers in Tenerife - Costa Adeje

Marbella Oeste

(Figures in euros / sqm)

Puerto Banús and Golf Valley In the area between the city of Marbella and San Pedro de Alcántara, the most in-demand areas are Puerto Banús and Nueva Andalucía, called the Golf Valley. Exclusivity is the common denominator of all new construction offers that reach average prices above 5,000 euros / sqm.

The most significant property offers by Engel & Völkers in Puerto Banús and Golf Valley (Figures in euros / sqm) Residential Projects

Neighbourhood

Min.

Max.

Avg.

Nueva Andalucía

Valle del Golf

3.500

4.800

4.150

Puerto Banús

Marina Puerto Banús

5.300

5.800

5.550

Residential Projects

District or Region Neighbourhood Min.

Max.

Abama – Las Arcadias

Guia de Isora

Abama

5.000

6.100 5.500

Abama- Villas de Tenis

Guia de Isora

Abama

5.500

8.000 6.000

Abama- Las Terrazas

Guia de Isora

Abama

4.000

7.000 5.500

Aqua Suites

Santiago del Teide

Los Gigantes

3.200

3.400 3.300

Infinty

Arona

Palm Mar

3.200

4.500 4.000

Colinas de Menceyes

Arona

Palm Mar

1.800

2.500 2.000

Sotavento

Granadilla de Abona Sotavento

1.500

2.200 2.000

Insigne

Adeje

Rokabella

3.100

4.100

3.500

Playa Paraíso

2.300

3.000

2.500

Ocean Garden Adeje

Avg.

Market Trends. The Spanish Residential Market | 107

Andorra Andorra

The country’s economic outlook

Andorra

Spain

Nominal GDP of Andorra

The Principality of Andorra is characterised as a society and a dynamic economy that has a very stable political and institutional system. With 468 square kilometres and 75,000 inhabitants, more than 100 nationalities coexist in the country. The Andorran economy is oriented towards services and amenities with tourism and commerce as its two fundamental pillars. With a specialised offer in winter activities, but also with a high influx of visitors throughout the year, tourism is the main source of economic resources in the country. More than eight million people visit the Principality every year.

3000

2,6% 2,2% 2.553

2500

2.471

2.525

0,4% 2000

2013

2.674

0,4% 2014

Data in millions of euros.

The economy of Andorra maintains the path of growth and forecasts point to 2019 being its sixth consecutive year of growth. The Department of Statistics for the Government of Andorra places the progression of the real gross domestic product (GDP) at 2.3% for the past year, although the forecasts made for the coming years reflect some slowdown with real GDP growth of the 1.8% in 2019, 1.5% in 2020 and 1.1% in 2021.

2.601

2,8%

2015

2016

2017

%

Source: Department of statistics Government of Andorra

Main magnitudes of the economy of Andorra 2014

2015

2016

2017

Nominal GDP per capita (euros)

35.786

35.342

35.580

35.753

IPC

0,4%

2,6%

-0,1%

-0,9%

Public Debt (% GDP)

41%

40,6%

40%

37,6%

Business

7.216

7.666

8.051

8.408

Source: Departament of statistics Government of Andorra

Andorra

108 | Market Report 2018-19 Spain and Andorra

The Principality is in the process of modernising its economy and has opened up to foreign investment. A development that began in 2012 with the introduction of the Foreign Investment Law coming in full force.

Since then, it has received a total of 3,481 applications from foreign entrepreneurs to invest in, out of which 2,831 have been approved and finalised, contributing

Andorra | 109

to 361 million in the country. According to the report from the statistics department, with the introduction of this Law being enforced, the country has gone from receiving 60 annual requests from companies interested in investing in the principality to 609 of 2017. By countries, Spanish entrepreneurs make up 46% of the total investment, followed by the French, with 25%.

On the other hand, the European Union eliminated Andorra from the list of tax havens in December 2018, culminating a process that began in 2009. Although the Andorran economy still has a strong dependence on the financial sector, it is estimated that it represents just under 20% of GDP.

Property Market and Trends

Price development The parish of Escaldes-Engordany, the financial and commercial hub of the Principality, remains as the most expensive area of Andorra. The average price of the properties sold by Engel & Völkers in this area is 5,720 euros / square metres and the maximum is 9,355 euros / sqm. Very closely behind is the capital of the country and the most populated and small area of the Principality, Andorra la Vella, where the properties have an average price of 5,550 euros / sqm. On the other side of the scale is the town of Encamp with an average price of 2,900 euros / sqm.

Residential The number of real estate purchases carried out in 2018 registered an increase of 5% to a total of 2,003 transactions, according to data from the Department of Statistics of the Government of Andorra. La Massana and Andorra la Vella are the parishes where real estate purchases increased most in relative terms, while Escaldes-Engordany is the only one registering a decrease.

The volume of real estate transferred - flats, detached homes, parking spaces, commercial premises, warehouses - last year increased by 9.4% compared to the previous year to 5,537. Considering the type of property, the total of new real estate property transmitted in 2018 decreased by 79% while the resale real estate increased by 20.7%. The total amount of properties transferred during 2018 experienced an increase of 23.8% over the previous year to reach 806 million euros.

The territory of the Principality of Andorra is divided into seven parishes, Canillo, Encamp, Ordino, La Massana, Andorra La Vella, Sant Julià de Lòria and Escaldes-Engordany. In all of these parishes, there is a high quality of life thanks to high citizen security, a dynamic and diverse commercial sector, competitive taxation and a solid and international financial system. These are characteristics that are completed with natural landscapes and the best ski resorts of the Pyrenees such as Grandvalira and Vallnord. Andorra also has Naturlandia,

110 | Market Report 2018-19 Spain and Andorra

the best theme park of the Pyrenees. The population of the Principality is concentrated mainly in the central parishes of the country, being the most populated Andorra la Vella.

The type of the star property in the country has 165 square metres distributed in four bedrooms, three bathrooms, two parking spaces, terrace of 30 square metres and storage room, with geothermal energy and mountain views. While the penthouses with terraces, the detached houses of 200-350 sqm and the apartments with surfaces between 100 and 180 sqm in high levels, are the most in-demand homes.

Property prices in Andorra (Figures in euros / sqm)

Minimum

Maximum

Average

Canillo

1.800

4.650

3.000

Encamp

1.400

4.400

2.900

Ordino

2.400

5.550

3.900

La Massana

2.050

5.600

3.850

Andorra la Vella

2.200

8.900

5.550

Sant Julià de Lòria

1.549

4.400

3.000

Escaldes-Engordany

2.100

9.355

5.720

Buyer profile

The detached properties with two to four bedrooms are sought by elite athletes who need to train in the privacy of their homes, as well as by retirees who also seek properties with terrace and parking. Also families with high

70% of buyers in Andorra are foreigners (European) and the remaining 30% are the local residents. Among the first, the Spanish and British dominate most of the purchases of homes in the Principality. Specifically, 30%

purchasing power, who require a safe place for their children to go to school, demand this type of property.

of the purchases are signed up by Spaniards who want to use the apartments as a second home, near the ski slopes, which have one to three bedrooms and with a price ranging from 250,000 to 400,000 euros.

Finally, apartments are the most highly sought type of property as a second residence by Spaniards and the French, as well as by the Andorrans who are looking for their first home.

On the other hand, the British make up the other 30% of the property purchases and their search focuses on houses and villas located in premium areas with a price that can vary between 500,000 euros and 1.5 million euros.

The French, who account for 20% of the demand, seek semi-detached villas with a medium size and with a price ranging between 500,000 euros and one million euros.

Andorra | 111

Rentals

New-builds

The detached house between 150 and 250 sqm, with four bedrooms, three bathrooms and with an average price of 3,500 euros per month is the star property to rent in Andorra. The average time it takes for a house to be rented out is three to four weeks, while the duration of the tenancy contracts reaches an average of five years.

The most popular areas are the parish of La Massana, Escaldes-Engordany and Andorra la Vella. These are areas of habitual residence, with many downtown amenities or right up the street. Can Guem, where the price reaches 13 euros / sqm, is a quiet and safe premium area near the centre of town.

The types of homes most in demand for rent in Andorra are the following four: independent villas, penthouses, apartments and flats. The independent and semi-detached villas with an average price of 4,000 euros per month are the most sought by families with high purchasing power, while the penthouses and duplexes between 1,800 to 2,500 euros per month are preferred by the young entrepreneurs, influencers and liberal professionals. The apartments are rented by families as a habitual residence and by entrepreneurs.

70% of people looking for a property to rent are foreigners. Of this percentage, 60% are Spanish, mostly people seeking a home for work reasons. The rest is made up of 10% of the Brits looking for part-time residences, such as villas or flats and 5% French who are looking for apartments.

The most expensive area to rent a home in Andorra varies depending on the season. Andorra la Vella is the most expensive to rent with average prices of 15 euros / sqm, at the Canillo ski season, where most of the offer of winter apartments are based in, drastically increases the price until reaching 17 euros / sqm.

112 | Market Report 2018-19 Spain and Andorra

Rental prices in Andorra (Figures in euros / sqm)

Minimum

Maximum

Average

Canillo

9

15

12

Encamp

8

13

8

Ordino

9

15

12

La Massana

9

12

10

Andorra la Vella

8

22

15

Sant Julià de Lòria

8

19

13

Escaldes-Engordany

8

20

14

Engel & Völkers currently has 10 new construction projects in Andorra, to which three more will be added in the coming months. The demand for this type of property far exceeds the existing supply in the country, which drives prices upwards regardless of the area in question. Although, there is an increase in price the more central or closer to the ski slopes, the higher the property’s price will be.

Unlike resales, the new-build properties for sale have a greater demand from the national buyer. Thus, the profile of the buyer for this type of property is formed by 40% foreigners and 60% nationals.

The most significant property offers

by Engel & Völkers in Andorra (Figures in euros / sqm)

The parishes with the largest number of new housing applications are Canillo, La Massana and Escaldes-Engordany. The first, which is the most extensive in the Principality, is a contemporary and mountain resort that offers peace and tranquility. The star property that’s in most demand in Canillo is a house at the foot of the slopes with 337 square metres, four bedrooms, four bathrooms, double parking, terrace of 150 square metres, located at the foot of slopes with a price of 1,025,000 euros. On the other hand, La Massana houses 121 square metres, three bedrooms, two bathrooms, double garage with a price of 525,594 euros.

Project

Zone

Minimum Maximum Average

D-000ATK

Ordino

4.400

4.700

4.550

D-000AS9

La Massana

3.200

4.500

3.850

D-000AD1

Canillo

2.200

4.300

3.250

D-0009GO

Andorra la Vella

5.200

6.230

5.720

D-000B44

Canillo

3.190

3.235

3.200

Andorra | 113

Credits Editor Engel & Völkers Spain S.L. Avenida Diagonal, 640 6th floor E-08017 Barcelona Spain Drafting PR Stakeholders Layout Vänster and Lei Coordination Paula Cruells Silke Dittrich Sources For the preparation of this market report, all the data and statistics have been collected from the following entities and agencies: Tax Agency (AET), European Central Bank (ECB), Bank of Spain, Bloomberg, College of Property Registrars, International Monetary Fund (IMF) ), Inverco, Idealista, National Institute of Statistics (INE), Ministry of Public Works, Housing and Land Observatory, Organisation for Economic Cooperation and Development (OECD) and Tinsa.

All the information has been thoroughly researched. No responsibility can be taken for the accuracy of the content. The reproduction of content protected by copyright is only allowed with the consent of Engel & Völkers Spain S.L. provided that an appropriate reference to the source is made.