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Market Report 2017-18 Spain and Andorra


Index

1. Editor‘s note.......................................................................................................................................4 2. International review ..........................................................................................................................6 Global growth .......................................................................................................................6 Property market .....................................................................................................................8 3. Spain‘s economy ................................................................................................................................9 Conjuncture............................................................................................................................9 The financial situation of household ...................................................................................10 4. The housing sector in Spain ...........................................................................................................12 Current situation ..................................................................................................................12 Financing .............................................................................................................................13 Price development ...............................................................................................................13 Mortgages and purchases ....................................................................................................15 New-builds ..........................................................................................................................17 Rentals..................................................................................................................................19 5. Trends in Spain‘s residential market ............................................................................................20 Madrid‘s community.........................................................................................................20 Madrid..................................................................................................................................20 Madrid‘s surroundings ........................................................................................................27 Catalonia.............................................................................................................................34 Barcelona.............................................................................................................................34 Barcelona‘s surroundings ....................................................................................................42 Gerona - Costa Brava ..........................................................................................................46 Tarragona.............................................................................................................................52 Catalan Pyrenees - Gerona and Lérida.................................................................................53 Valencian Community ......................................................................................................55 Valencia ...............................................................................................................................55 Costa Blanca .......................................................................................................................60 Andalucia............................................................................................................................65 Costa del Sol .......................................................................................................................65 Northwest area of Spain ..................................................................................................70 Galicia .................................................................................................................................70 Cantabria..............................................................................................................................73 Northeastern area of Spain..............................................................................................75 Basque Country....................................................................................................................75 Aragon..................................................................................................................................77 Canary Islands ..................................................................................................................78 Tenerife................................................................................................................................78 Balearic Islands .................................................................................................................80 Mallorca...............................................................................................................................80 Menorca...............................................................................................................................83 Ibiza......................................................................................................................................83 New-builds .........................................................................................................................84 6. Andorra ............................................................................................................................................90 Country context....................................................................................................................90 Property market and its trends.............................................................................................91

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Editor‘s note

extent. On the contrary, in the cities where supply was scarce, the price increase was high. The capital cities that recorded the highest price increases were Madrid, Barcelona (despite the poor market situation in the last quarter) and Palma de Mallorca. Throughout most of the country, the increase in sales was due to the boost in demand for improvement and investment. The first, helped by the greater facility to sell the old flats and the second, encouraged by the very low remuneration of deposits. Encouraged by the combination of both factors, buyers preferred to invest in central and high-end areas. This is why in a large part of the cities the development of sales was much more positive, especially in the more premium areas than the rest. Foreign demand remained high and the percentage of purchases exceeded that of the previous year, despite the negative repercussion that Brexit had on the Brits who were the main buyers during 2017.

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

In 2017, the property prices in Spain increased by 8%, while purchases increased by around 15%. Both of these are the highest increases in the last decade. However, there is no reason to suggest an upcoming housing bubble or that the upward trend is about to end. On the contrary, throughout most of the country‘s municipalities, this cycle is at its initial phase. During the past year a transfer of expansion was seen from large cities to almost all the Spanish municipalities. The property prices went up in all the autonomous communities; although they did so unevenly. In the municipalities where there was a high supply of property for sale, the price increased to a lesser

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It has also been observed that house purchases by foreigners have had a different objective depending on the area. Thus, while in the tourist towns such as Palma, Ibiza and Marbella, the main purpose has been to use the property as a family residence (both in the summer and temporarily for the rest of the year), in Barcelona and Madrid the main reason has been due to investors. This more professionalised purchase has focused on the purchasing of well-located buildings for partial or total renovation before putting them up for sale.

“The price of property will rise by more than 10% in large cities” The forecasts for 2018 point to a rise in the price of property by more than 10% and an increase in sales by more than 20%. Although the demand for improvement and investment will continue to be the main drivers of the market, the first-time buyers (mainly young people) will begin to become significant.


In the current expansion phase, for the first time, many families who are rent payers will opt for owning their own home. The reasons for this change will be the following: the ease of granting mortgages from banks, both in terms of household‘s monthly income and the amount of savings as well as the high creation of employment (more than 475,000 new jobs).

“In 2018, the number of sold properties will be consisting of 89% resales and 11% new-builds. This is a very different structure from the previous expansion cycle when the distribution was 57.1% and 42.9%, respectively.” Undoubtedly, the low mortgage interest rates will also help in a big way. The reason is twofold: the purchase of public and private debt by the ECB until September 2018 and the existence of a zero interest rate. However, at the end of the year, variable rate mortgages will be a little more expensive than last year, because the one-year Euribor will be around 0.2% (in 2017 it was always negative). The distribution of sold properties throughout 2018 will be made up of 89% resale homes and 11% newbuild homes, which is a structure that‘s very different from the ones observed in the previous expansive cycle, when the resales represented 57.1% and the new-builds were at 42.9%. This situation is mainly due to the limited number of completed new-builds during the current year and the significant stock of new homes that still exists in many municipalities. Although the level of new-build projects is still low, the figures suggest a reactivation in property offers. The permits to build new homes in 2017 have doubled the historical minimum since 2013 and the forecasts suggest that construction of properties will be maintained in 2018 in figures close to 100,000 units. The demand for new-builds will gain strength in those markets that boast a high population, especially in Madrid and Barcelona.

“The year‘s great performances will be from the periphery of Madrid and Barcelona as well as some medium-sized cities like Valencia or Malaga” The biggest highlights of the year will be the periphery of Barcelona, Madrid, and medium-sized cities (Valencia, Malaga, Alicante, etc.) and certain premium tourist destinations that are used as second residence. The first effect will be a consequence of the relative scarcity in Madrid and Barcelona and that an increasing number of families will prefer to buy a property in these cities‘ surroundings than to rent in the centre. The second will have as a main consequence the displacement of investors towards both cities, the existence of new-build supply to partly fulfill the needs of the population and the greater confidence of the families in the future of the country‘s economy. The third will be a genuine novelty, because up to now the demand for holiday homes by Spaniards has been very rare. In the majority of the municipalities in the previous years, the purchases carried out have been motivated by very low prices and the purchased homes have been primarily used as holiday rentals. These types of buyers will buy the property to live in themselves temporarily until they are in a better financial situation.

“For the first time in the current expansion phase, many families will opt for home ownership instead of continuing to rent.” In this way, the rental market, which has regained strength in recent years in a sustained manner, will consolidate the trend in a more moderate price environment, mainly after the double-digit increases registered in the large cities. Finally, I would like to point out that there are sufficient reasons to predict that 2018 will be a great year for the housing market. We hope that 2018 will be significantly better than 2017 and best of all, we hope it will not be the final great year of the decade.

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International review Global growth

2018 will bring the definitive consolidation of the expansive cycle. As highlighted by international organisations, the global economy will evolve in a synchronised manner, with an increase in consumer confidence and generalised improvements in investment, employment and trade. The main risks are geopolitical (North Korea, USA, Brexit ...). The estimates point to an overall growth of 3.9%, more than recorded in 2016 and 2017, but still lower than the historical averages. The United States will make progress up to 2.3%, supported by higher spending on consumption, tax cuts, the surge in business investment and job creation, while regulatory reforms are still pending. Europe will grow in a rhythmic manner, around 2%, with Spain as one of the leading countries. The economy of the United Kingdom will again be weakened by the uncertainty about the Brexit negotiations. The consequences of the process are already taken into account in the economy, with a slowdown of consumption and investment, weak GDP growth - Annual variation Developed economies

productivity and wage increases as well as unstable property prices. The economic growth for Japan will not reach 1% due to the moderation of private consumption and the fact that the momentum for the organisation of the Olympic Games in 2020 is neutralised by the increase in imports and the lower projected growth of foreign demand. Emerging markets will benefit from a favourable global financial environment and the good performance of the developed economies, with growth close to 5%. In the case of Brazil, although it also shows improvement, it has not yet applied structural changes so the recovery can be weak and vulnerable. China‘s growth remains robust, mainly due to investment, although this will moderate in response to the adjustments necessary to reduce overcapacity in certain sectors. On the other hand, the excessive indebtedness of this Asian country still persists. GDP Growth - Annual variation Developing economies

4%

8% 7%

3%

6% 2% 5% 1%

4%

Source: FMI

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1 8 0 2

1 7 0 2

1 6 0 2

1 5 0 2

1 4 0 2

1 3 0 2

1 2 0 2

1 1 0 2

1 8 0 2

1 7 0 2

1 6 0 2

1 5 0 2

1 4 0 2

1 3 0 2

0

1 2

3% 2

2

0

1 1

0%

Source: FMI


Consumer confidence (Base 100) 120 115 110 105 100 95

Advanced economies

2 08 01 /2 7 01 7

6 2

0

1

5 2

0

1

4 2

0

1

3 1 0 2

2

0

1

2

90

World

Emerging economies

Source: FMI

Inflation Inflation remains at low levels, despite the rebound of major economies due to financial reasons, such as high indebtedness, demographic and technological matters. In developed countries, the increase in prices will remain below 2%, with the exception of United Kingdom, where inflation will move up around 3% as a result of the depreciation of the pound. Inflation in developed countries Interanual variation 3,0 % 2,5 % 2,0 % 1,5 %

Foreign exchange

1,0 % 0,5 %

8 1 2 0

7 1 2 0

6

5

1 2 0

1 2 0

4 1 2 0

3

2

1 2 0

1 2 0

1 1 2 0

1

0

0% 2 0

unexpected supply disruptions and geopolitical events -especially in the Middle East and Latin America-, and on the other hand, the high level of inventories and the rapid response of oil producing countries could neutralise any significant price increase. Without inflationary pressures, central banks will not be forced to accelerate the withdrawal of stimulus measures, although some have already started to act. This is the case of the Federal Reserve in the US, which last year raised interest rates three times to the range of 1.25% -1.5%, advancing another three increases for 2018. We can also review the interest rates that are set by the Bank of England, while the European Central Bank (ECB) is progressively withdrawing extraordinary liquidity measures although at the moment it has maintained the rates at 0%. In any case, the change in monetary policy will be gradual, without causing shocks and without affecting financial stability.

Source: OCDE

With oil making a comeback, it adds excessive pressure on prices. In the medium term, uncertainty will prevent predictions because, on the one hand, it can cause

Expectations of interest rate hikes will attract capital that seeks higher returns, which will favour the appreciation of certain currencies although volatility will be the dominant note in the market. The ECB‘s more cautious stance with the Federal Reserve can halt the euro‘s rise against the dollar by stabilising it around 1.15-1,20. The pound, for its part, could continue to depreciate because of the Brexit process despite the interest rate increases planned by the Bank of England.

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Property market

House prices continue to advance in much of the world as low interest rates play a key role. Given the importance that the housing sector has for the financial and macroeconomic stability of a country, it should be noted that price increases are occurring at a steady and sustained pace as a result of applying macroprudential policies designed to avoid excessive credit. and new bubbles. This is the case of countries such as Belgium, Luxembourg, Holland, Israel and New Zealand. The expectation that prices will continue to rise, with a growing relevance of rent, explains the demand for investment in housing in the main cities of the world,

especially in an environment of low returns on many assets. The best locations will play a leading role as households with high purchasing power increase and international demand consolidates, especially from China. The main risk for the sector is the tightening of monetary policy, although historically the housing market has shown resistance to these phases of the cycle, while the rate hikes tend to be associated with a healthy economy and inflation. The sector also faces technological challenges among other issues, which will change the way homes are built and marketed in the coming decades.

The price development of homes by countries - Year-on-year change in the last year 20 % 15 % 10 % 5% 0% -5% - 10 % - 15 %

B R raz us il Q sia G ata re r ec e C UA ro E at ia F Ita in ly B l S w el an it gi d ze u r m F lan ra d Ja nce pa n T U ur K A ke us y t G Sp ria er a D m in en a m ny P ar ol k M an ex d ic o Lu xe I US s m ra b N S ou el et w r he ed g A rla en us n d P tr s or al i t N ug a or a l w S I lo re a va la y k n B R d u e R lga p. o r H ma ia un n g ia C C ar ze h y ch in N a ew C Re an p H Ze ad . on a a P g lan hi K d lip on p g Ic ine el s S and er bi a

- 20 %

Source: FMI

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Spain‘s economy Conjuncture The loss of dynamism recorded by Spain‘s economy during the second half of 2017 will be accentuated throughout 2018 due to the slowdown in domestic demand. Private consumption will be slowed down both by the adjustment of household spending decisions on disposable income and by the negative impact associated with the situation in Catalonia. This slowdown will weigh heavily on the economy, as private consumption has been key in the recovery, accounting for nearly 60% of GDP growth in the last three years. A lower public consumption is also expected, in line with the objectives of reducing the public deficit. The foreign sector will continue to contribute to the economy, but more modestly than in 2017. The result will be this year‘s GDP growth of between 2.3% and 2.5% compared to 3.1% in 2017, which was the largest among the developed economies.

Although job creation will move at a moderate pace in line with the growth of the economy, the positive trend in the job market will allow a reduction in unemployment rate to around 15%, the lowest level since 2008. The figure is the generation of about 500,000 jobs per year. Inflation left a negative terrain in September 2016 and since then it has remained positive for 16 months, standing at 1.1% at the end of 2017. Looking ahead to 2018, the forecasts point to new price increases that would bring the year-on-year rate to 1.6% in December. Despite the rebound, inflation will remain at moderate levels, reflecting the containment of wages and the favourable impact of the euro appreciation on the cost of imports.

GDP development in Spain - Year-on-year change 5% 4% 3% 2% 1% 0% -1 % -2 % -3 % -4 %

7 0 1 2

6 0 1 2

5 0 1 2

4 0 1 2

3 0 1 2

2 0 1 2

1 0 1 2

0 0 1 2

9 0 0 2

8 0 0 2

7 0 0 2

6 0 0 2

2

0 0

5

-5 %

Source: INE

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Unemployment Rate (Active Population Survey) 28 % 24 % 22 % 18 % 14 % 10 %

7

6 2

0

1

5 2

0

1

4 2

0

1

3 2

0

1

2 2

0

1

1 2

0

1

0 2

0

1

9 2

0

1

8 2

0

0

7 2

0

0

6

0

2

0

0 0

2

2

0

0

5

6%

Source: INE

Annual development of the CPI 3,5 %

3,0 3,0 2,6

2,3

2,5 %

1,9

1,8

1,5 1,5 1,6

1,6 1,5 %

1,7 x,x

1,6

0,7 0,7 0,5 %

0,2

-0,1

-0,3 -0,8 -0,8

-0,5 %

-0,6

-0,8

-1,1 -1,0

-1,5 %

7

7

1

1

0

1

2 /2

7 1

1 /2

0

1 0

7 1

0 /2

7

1 0

1 0

9 /2

7 0

8 /2

0

1 0

7 0

7 /2

7

1 0

7

1 0

6 /2

0

5 /2

7

1 0

4 /2

0

0

7

1 0

1 0

3 /2

0

7 0

2 /2

6

1

1

0

0

2 /2

0

1

1 /2

6 1 0

6 1 0 1

1 /2

6 1 0 1

0 /2

6 1 0 0

9 /2

6

6

1 0

8 /2

0

1 0

7 /2

6 0

6 /2

0

1

6 0

5 /2

0

1 0

6 1 0 0

4 /2

6 1 0

3 /2

0

2 /2

0

0

1 /2

0

1

6

-2,5 %

Source: INE

Financial situation of households The financial situation of Spanish households continues to improve. Their wealth is already 540% of GDP mainly due to the increase in property values, which is the first investment asset of families. In addition to property wealth, net financial wealth has also evolved favourably. The creation of employment and negative inflation allowed 2016 to become the third consecutive year for increasing the purchasing power of families. In 2017,

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household consumption and investment maintained an upward trend, which caused the savings rate to fall to the lowest level since 2008. However, the rise in inflation has begun to put pressure on wages, which will make them fall in real terms, thus limiting spending and stopping the reduction of household savings.

Household wealth (Billion euros) 8 7 6 5 4

Although the rate of de-indebtedness can also be stopped, after eight years of decreases, the households‘ debt fell by 1.2% in 2017 to stand at 704.39 billion euros, with a significant decrease in consumer loans and a more moderate cut in mortgages. Its leverage is a

3 2 1

6 2

0

1

4 1

2

0 2

1

0

0

1

2

0

8

Property wealth

2

0

6

0 2

4

0 0

0

2

2

0

2 0 0 2

2

0

0

0

0

Net financial wealth Source: Bank of Spain and Afi

Property wealth and housing price - Annual variation 25 % 20 % 15 % 10 % 5% 0% -5 % -10 % -15 %

Housing price

6 2

0 1

4 2

0 1

2 2

0 1

0 2

0 1

8 2

0 0

6 0 0 2

2

0 0

4

-20 %

Property wealth Source: Bank of Spain, Ministry of Infrastructure and Afi

Household savings rates ISFLSH (annual)

12 % 10 % 8% 6% 4% 2%

7 0 1 2

6 0 1 2

5 0 1 2

4 0 1 2

3 0 1 2

2 0 1 2

1 0 1 2

0 0 1 2

9 0 0 2

8 0 0 2

0 0

7

0% 2

Percentage over gross income

14 %

Source: INE

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Property market in Spain Current situation The timid recovery that started in 2014 was consolidated by 2017, which became the fourth consecutive year for growth in the housing sector in Spain both in terms of prices and number of sales. The scenario that has led to the development of the sector in recent years has been strengthened, confirming last year to be one of the best for property sales since 2008. High rate of employment, the improvement in consumer confidence, low interest rates and investors‘ interest in the sector have sustained this development, which will continue throughout 2018 at a slower pace.

Forecasts for this exercise suggest that a sustainable recovery will be maintained. The sector will continue to record better growth rates, although not as high as those observed in 2017. The economy will remain on the lookout for a foreseeable rise in interest rates and changes in the ECB‘s incentive policy. According to some sources, the main player will once again be the residential developments, such as newbuild permits. To this we must add the increase in good cement usage, the increase in land prices and the resurgence of the promoters. Housing sector contribution to GDP. Inversion. (% on quarterly GDP) 18 % 16 % 14 % 12 % 10 % 8% 6% 4% 2%

7 0 1 2

6 0 1 2

5 0 1 2

4 0 1 2

3 0 1 2

2 0 1 2

1 0 1 2

0 0 1 2

9 0 0 2

8 0 0 2

7 0 0 2

6 0 0 2

5 0 0 2

2

0 0

4

0%

Transaction value / GDP Source: INE and Ministry of Infrastructure

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Financing The development of the property market is based on financing conditions, which continue to be favourable. The Euribor, the index to which the majority of mortgages in our country are referenced, has been at negative levels since February 2016 and the forecasts from experts suggest that it could be maintained within this rate for at least until the end of 2018. This is why the forecast sees low inflation, which leaves some room for the ECB to maintain interest rates at the current levels.

Euribor in 12 months 6% 5% 4% 3% 2% 1% 0%

7 1

6 1

0 2

1

4

0 2

0 2

1

2

0

0 2

8

1

0

0 2

0 2

0

6

4

0 2

2

0

0

0 2

0 2

0

0

0

-1 % 2

The Euribor ended last December at -0.19%, when it was at its all time low. However, it is expected that the index will change its trend and begin to rise. It all depends on when the ECB completes its stimulus plan.

Price development

The increase in the price of housing that started in 2014 was maintained throughout the past year. According to the latest data available from the Ministry of Development, the average price per square metre stood at 1,540 euros in the third quarter of 2017, which represents an increase of 2.7% over the same period in the previous year. This figure is still 26.7% lower than the maximum of 2,100 euros recorded at the beginning of 2008. The number of properties has increased in 12 autonomous regions in interannual rate. The largest increases were in Madrid (6.5%), Catalonia (6.2%), The Canarias (5.5%) and Baleares (5.4%). On the contrary,

eight regions showed interannual declines, like Murcia (-1.7%). Valencia (-1.4%) and Navarra (-1.3%) The data from the Appraisal Society indicate that property prices increased by 5% in 2017 to 2,227 euros per square metre, the highest increase in 10 years. The rebound was concentrated in the second half of the year, which registered an advance of 3.3% and doubled the number recorded until June (1.7%). By regions, Catalonia and Madrid recorded the highest price increases and reached 3,452 and 3,167 euros per square metre, respectively. Tinsa points out that the

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development of the average price in Spain is positive with some signs of moderation due to uncertainties regarding the strength of the job market and Catalonia. According to their calculations, the average price of a completed property (new and resale) in Spain reached 1,264 euros per square metre in the fourth quarter of the year - that‘s 4.2% more than in the same period of 2016.

The most expensive municipalities in Spain (€/sqm)

To refer to purchases, the National Institute of Statistics (INE) confirms that the rise of the Housing Price Index (IPV) in the third quarter of 2017 stood at 6.7%. By types, the annual rate of new-build prices was 6.5%, compared to 6.7% for resales. Madrid (12.3%), Catalonia (10%) and the Balearic Islands (9.1%) are the regions with the highest price increases. Looking ahead to this year, forecasts indicate that prices will continue to rise, although at a moderate pace once

San Sebastián

3.326,9

Sant Cugat del Vallès (BCN)

3.008,0

Ibiza

3.002,8

Barcelona

2.992,1

Getxo

2.796,4

Santa Eulalia del Río (Ibiza)

2.788,6

Madrid

2.750,2

Pozuelo de Alarcón

2.741,8

Majadahonda

2.660,4

Calvià

2.659,5

Data at the end of the third quarter in 2017. Source: Ministry of Public Works

the demand for purchasing property begins to return again. According to the Appraisal Society, the number of years that an average citizen needs to save for the purchase of a medium-sized home, was 7.6 last year, four tenths more than in 2016, although far from the 13.4 in 2007. Prices will be pushed upwards due to a limited supply, strong internal and external demand and the rental boom. In addition, the greater strength of Barcelona and Madrid in the overall market, both representing 26% of total sales in the country, will boost the average prices in Spain. The development of prices per square metre for available housing in Spain 2.500

2.000

1.500

1.000

500

7 0 1 2

6 0 1 2

5 0 1 2

4 0 1 2

3 0 1 2

2 0 1 2

1 0 1 2

0 0 1 2

9 0 0 2

8 0 0 2

2

0 0

7

0

Data in euros at year-end, except at the end of the third quarter in 2017. Source: Ministry of Development.

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Annual property price development 2016

2017

8,4 7,3

8%

6,3

6,7 6,7

6,4

6,1 3,9

4%

4,5 4,5

4,0

5,8 5,6

5,5 5,3 5,3

4,3

6,5

4,4

3,5

3,2

General index

New-build property

M 3

T

R

M 2

T

R

M 1

T

R

M 4

T

R

M R T 3

T 2

1

T

R

R

M

M

0%

Resales Source: INE

Mortgages and purchases rate increase of 17.6% in the expectation of a rise in interest rates, which moves away from the possibility of creating a housing bubble. Today, around two out of five mortgages that are signed up are at a fixed rate compared to one in 10 in 2015.

The upward trend in the number of approved mortgages reflects the good performance of the property market. In the first eleven months of the year, the latest data available from the INE at the end of this report reveals that 289,415 mortgages were approved, which are 10.5% more than in the same period as the previous year. In that same period, the average amount of new mortgages grew by 10.7% to 122,703 euros.

The overheating of the mortgage market seems distant since the number of mortgages remains at low levels; still 25% below pre-crisis levels. To this we must add that there is no correlation between an increase in the sale of homes and an increase in new mortgages, since in many areas houses are paid for in cash. Finally, we must bear in mind that the lenders‘ criteria for granting mortgages is much stricter.

In terms of mortgages, the average interest rate is 2.67% (15.6% lower than the registered figure in October 2016) and the average term is for 24 years. 63% of mortgages on housing are given at a variable rate and 37% at a fixed rate. Fixed-rate mortgages experience an annual

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Mortgages constituted on housing in Spain 30.000 25.000 20.000 15.000 10.000 5.000

7 2

0

1 2

2

0

0

1

6

5 1

4 1 0 2

2

0

1

3

0

Data up to October 2017. Source: INE

In terms of purchases, the experts predict that the sale of homes in 2017 exceed the 500,000 units, which will mean an increase of 10% and reach the figure recorded in 2008. Looking ahead to 2018 the figure of half a million will also be achieved in a slower manner. According to the latest data available from the Ministry of Development, between January and September 2017, home sales came close to 390,100, which are 18% more than in the same period of the previous year. The accumulated sales balance between September 2016 and September 2017 was

around 516,700, 16% more than in the previous 12 months. By analysing the accumulated figures in the last 12 months (October 2016-September 2017 vs. October 2015-September 2016), home sales grew in all the autonomous communities. In particular, Cantabria (+ 23.3%), Castilla-La Mancha (+ 23.1%), Catalonia (+ 20.6%), Asturias and the Balearic Islands (+ 18.3% in both), Community of Valencia ( + 15.9%) and Madrid (+ 15.1%).

Total home purchases in Spain (Number of purchases per quarter) 160.000 140.000 120.000 100.000 80.000 60.000 40.000 20.000

New-built homes

1 7 0 2

1 6 0 2

1 5 0 2

1 4 0 2

1 3 0 2

1 2 0 2

1 1 0 2

1 0 0 2

0 9 0 2

0 8 0 2

0 7 0 2

0 6 0 2

0 5 0 2

2

0

0 4

0

Resales Source: Ministry of Public Works

16 |


Purchase and sale of registered homes according to the buyer‘s nationality. Quarterly 3T 2017

Nacionalidades

%

% s/extranjeros

United Kingdom

1,89

14,75

France

1,09

8,45

Germany

1,00

7,81

Sweden

0,76

5,91

Belgium

0,73

5,70

Italy

0,72

5,60

Romania

0,72

5,60

China

0,62

4,83

Morocco

0,51

3,99

Russia

0,36

2,81

Holland

0,33

2,57

Norway

0,27

2,12

Ukraine

0,25

1,92

Poland

0,21

1,66

Ireland

0,17

1,31

Switzerland

0,15

1,19

Bulgaria

0,15

1,17

Algeria

0,13

1,04

Denmark

0,12

0,96

Rest

2,65

20,62

Foreigners

12,85

100,00

Locals TOTAL

87,15 100,00 Source: College of Registrars

New-builds Although the level of new home construction is still low, the figures suggest a reactivation of the housing offers. The latest data available from the Ministry of Development indicate an increase of 26.3% in permits to build new homes between January and November 2017, with a total of 74,690 units. The figure doubles the historical minimum of 2013 (34,288 units), but it is still far from the record reached in 2006 (865,561). Forecasts indicate that property construction in 2018 will remain in figures close to 100,000 units after exceeding 75,000 in 2017.

properties have been snapped up in recent years. Madrid, Barcelona, Alicante and Malaga are in the lead with the number of new-builds on offer.

In general terms, the demand for new-builds is gaining strength in markets with greater demand, high volume of population and where a good part of the available

| 17


New construction permit (residential use) 700.000 600.000 500.000 400.000 300.000 200.000 100.000

7

*

6

0 2

2

2

0

0

1

1

5 1

4 2

0

1

3 2

0

1

2 2

0

1

1 2

0

1

0 2

0

1

9 2

0

0

8 0 0 2

2

0

0

7

0

* Data up to October 2017. Source: Ministry of Public Works

New home construction permits, extension and / or renovation (No. of homes in the largest cities) 30.000 25.000 20.000 15.000 10.000 5.000

Madrid

Barcelona

2

0

1

7

*

6 2

0 1

5 2

0 1

4 2

0 1

3 2

0 1

2 2

0 1

1 2

0 1

0 2

0 1

9 2

0 0

8 2

0 0

7 2

0 0

6 0 0 2

2

0 0

5

0

Valencia * Data up to October. Source: Ministry of Public Works

18 |


Rentals

The strength of the rental market has continuously increased in Spain over the last few years. The INE data show that the percentage of households paying rent has increased by close to seven points between 2001 and 2016, from 9.6% to 16.3%.

The good employment situation, the lack of housing supply, the growing interest in renting after the 2008 crisis and the profitability obtained through holiday lettings is causing the long-term rental agreements to reflect the notable rent increases . The Rent Contract Income Updater index (Arca) rose by 3.98% in January 2018 and had been on the rise for 21 consecutive months. The increase in rent prices are encouraging the estate agencies that specialise in letting management in Spain to come up with new building plans and benefit from many incentives.

In spite of everything, Spain is still one of the countries in Europe with the highest property ownership rate. The percentage of Spaniards who own a property is 78.2%, almost nine points higher than the European Union average, which is 69.5%, according to Eurostat data.

| 19


Trends of Spain‘s residential market Madrid‘s community Activity area of MMC in the capital Fuencarral - El Pardo

Aravaca

Hortaleza

Tetuán Chamartín

Moncloa

Chamberí Salamanca

Ciudad Lineal

San Blas

Centro Retiro Arganzuela

Vicálvaro

Latina Puente de Vallecas Carabanchel Usera

Madrid Centro - Arganzuela The privileged location is the main attraction for both national and international investors, who buy homes in the centre of Madrid in search of a guaranteed profitability in the medium and long term. In 2017, the average price in the Centro - Arganzuela area rose slightly more than 10%, to stand at 4,450 euros / sqm. The profile of the buyer in the Centro district is composed mainly of young people between 25 and 40 years of age and investors looking for houses to rent out or to renovate and sell later. The charm of being in the historical centre of the city is an added value for the foreign client, who shares 50% of the purchases equally with the national buyer. On the other hand, in Arganzuela, buyers are usually families with children, while sellers are older people looking for smaller flats.

20 |

“Embajadores has become the most sought after area of Centro in 2017”


Although Justicia is again the most expensive area of Centro with an average price of 6,300 euros / sqm, the limited supply has transferred most of the demand to Embajadores. The most accessible neighbourhood in the area, which was the highligh in 2016, has remained as an emerging area in 2017 where the opening of new small non-traditional retail businesses stands out. The appreciated offer of cultural events, the bohemian atmosphere and the multicultural diversity offered by the most cosmopolitan population of the capital have beaten Justicia, which has remained as the second most desirable neighbourhood, followed by Universidad.

In the first instance, the most popular are 3-4 bedroom flats with communal facilities such as swimming pool, garden areas that reach maximum prices around 5,700 euros / sqm. Less popular are the villas, which can be found in Atalaya and in Colina.

Prices per square metre in the neighbourhoods of Centro and Arganzuela (€)

Centro

Mín.

Máx.

Medio*

Justicia

5.500

7.100

6.300

Palacio

4.482

6.711

5.596

Cortes

4.800

7.200

6.000

Universidad

3.421

5.800

4.610

Sol

4.225

5.600

4.912

Embajadores

2.969

5.862

4.415

Acacias

3.500

3.800

3.650

Chopera

2.560

3.200

2.880

Delicias

3.000

4.060

3.530

Imperial

1.983

2.500

2.241

Palos de Moguer

3.800

4.200

4.000

Legazpi

3.650

3.900

3.775

Arganzuela

* Relates to the average price of properties for sale in the area.

Ciudad Lineal The districts that make up Ciudad Lineal are very consolidated and maintain a stable demand around a buyer profile composed of middle class Spanish families with 2-3 children. The prices and the type of housing are divided into two very different areas. On the one hand, the northern neighbourhoods (Costillares, Atalaya, Colina, San Juan Bautista and Pascual, near Chamartín) and the cheaper ones in the south (Concepción, Quintana, Ventas and Pueblo Nuevo).

Among all of these areas, the strong demand registered in Costillares stands out again, which has raised the average price in the neighbourhood to 3,700 euros / sqm. Prices per square metre in Ciudad Lineal (€)

Mín.

Máx.

Medio*

Costillares

1.500

5.600

3.700

Atalaya

3.000

5.000

4.000

Colina

2.100

6.000

3.600

San Juan Bautista

1.800

5.700

3.700

San Pascual

2.100

5.700

3.500

Concepción

950

5.600

2.700

Quintana

1.500

4.400

2.700

Ventas

1.500

4.200

2.700

Pueblo Nuevo

1.200

4.300

2.300

* Corresponds to the average price of properties for sale in the area.

| 21


Chamartín - Tetuán Located to the north of the capital, both districts are the main economic centres of the financial axis of Paseo de la Castellana along with a high range of services and public transport. Chamartín integrates the prestige of some of the most coveted residential areas of the city centre, such as El Viso and reached an average price of 4,310 euros / sqm in 2017. For its part, Tetuán picks up the demand of those younger customers who value living near the prestigious educational institutions and health centres of Chamartín at more competitive prices - the average price in 2017 was 2,995 euros / sqm-. In Chamartín the national customer prevails over the international one to the point of claiming 98% of purchases. Families with two or three children with high purchasing power and who seek flats between 160 and 300 sqm in urbanisations with swimming pool or villas in the historic neighbourhoods of the district are composed of a small group of foreign clients, among whom last year were mainly the Philippines nationality. In Tetuán, where the most popular type of home is flats between 100 and 180 sqm, the growth registered by the Castillejos neighbourhood stands out due to the demand from young professional couples who are managers, etc.

Hispanoamérica and Nueva España complete the area with the highest standing properties in the district, although at lower prices than El Viso, where Gabriel Lobo Street has become fashionable. Ciudad Jardín welcomes young buyers who seek smaller villas at a more affordable price. Prices per square metre in Chamartín and Tetuán (€)

Chamartín

Mín.

Máx.

Medio*

El Viso

3.010

7506

5.209

Nueva España

3.333

5.976

4.582

Hispanoamérica

3.371

6.000

3.875

Castilla

2.100

3.566

3.392

Prosperidad

2.385

3.981

2.977

Ciudad Jardín

2.175

4.300

3.347

Bellas Vistas

2.792

3.344

2.213

Cuatro Caminos

2.686

3.969

2.905

Castillejos

2.792

3.692

3.307

Almenara

2.866

3.200

2.561

Valdeacederas

2.500

1.800

2.077

Berruguete

2.800

2.000

2.264

Tetuán

* Corresponds to the average price of homes offered in the area.

22 |


Chamberí The district, which stands out for its homogeneity in the type of property for sale, brings together the largest number of palaces in the capital that were once the residence of the aristocracy in the nineteenth and twentieth centuries, and today offer renovation fincas that can easily be converted into residential homes. These unique buildings are concentrated in the neighbourhood of Almagro, the most prestigious in the area, where buyers demand large properties from 250 sqm. Many of these buyers start the search in the adjoining Salamanca district but opt for the elegant Almagro where the property price is lower.

Prices per square metre in the neighbourhoods of Chamberí (€)

Min.

Max.

Medium*

Almagro

3.500

7.000

5.105

Trafalgar

3.513

5.142

4.260

Rios Rosas

3.300

5.300

4.500

Vallehermoso

3.100

4.000

3.900

Arapiles

3.174

4.800

4.000

Gaztambide

3.200

4.900

4.100

* Corresponds to the average price of homes for sale in the area

Hortaleza Hortaleza is the district of Madrid with a greater contrast both in the type of housing and the profile of the investor. The prices range from minimum of 1,300 euros / sqm that can be found in Canillas to 8,000 euros / sqm in La Piovera. The latter includes the prestigious Conde Orgaz Park, where the most exclusive communities of single-family homes live together in an area with semi-detached houses that cost less than this park‘s average price by a little more than 4,000 euros / sqm. In both areas, buyers are families with high purchasing power. The rest of the neighbourhoods are made up of middleclass Spanish families that look in Apóstol Santiago,

The average sale price in 2017 reached 4,094 euros / sqm in Chamberí, which represents an increase of 6.8% compared to the previous year. The profile of the buyer is very varied according to the neighbourhoods and ranges from upper class Spanish families who are interested in residing in Almagro or Ríos Rosas, to foreign citizens looking for a house for work transfers or to invest in. 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 out to students. In 2017, Engel & Völkers recorded a 38% increase in its sales that in total translates into a 55% increase in revenues due to the rise in average prices.

| 23


Pinar del Rey and Canillas for 2-3 bedroom homes without many luxuries and larger ones in more modern communities with communal facilities, such as swimming pool, garden areas and garages.

Prices per square metre in Hortaleza (€)

Mín.

Máx.

Medio*

Apostol Santiago

1.500

4.500

2.700

Pinar del Rey

1.400

5.000

2.800

Canillas

1.300

6.500

3.100

Piovera/Conde Orgaz 2.000

8.000

4.100

Palomas

8.000

3.600

1.800

Argüelles remains the most premium area of the district, with the streets Pintor Rosales, Paseo de Moret and the stretch of Ferraz with views of the Temple of Debodt as the most exclusive neighbourhoods. Customers who choose these areas look for flats from 250 sqm in stately buildings with exceptional views. The rest of the neighbourhood is characterised by the homogeneity in the typology of properties, where the most in demand focuses on flats of 2-3 bedrooms with areas between 90 and 150 sqm. Price per square metre in Moncloa (€)

Argüelles

Min.

Max.

Medium*

2.759

4.975

4.140

* Corresponds to the average price of homes for sale in the area.

* Corresponds to the average price of homes offered in the area.

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

Retiro The excellent location of the district makes it a top choice for the middle-class Spanish families who want to buy their first home. In fact, they account for 85% of purchases compared to 15% of international customers. Latin Americans, mainly Mexicans, Colombians and Venezuelans, find their second homes in the stately neighbourhood of Jerónimos to spend long periods of time in. Their search focuses on large-sized homes between 250 and 400 sqm - located in unique buildings that exceed one million euros. In the rest of the neighbourhoods of Retiro, the types of properties that are most in demand are three-bedroom flats with living areas of between 100 sqm and 140 sqm

24 |


for around 500,000 euros. In all of these properties there has been a double-digit price growth in 2017 led by Ibiza, Niño Jesús and Estrella. The high rental profitability has increased buy to lets by 30% compared to 2016, with Pacífico, Ibiza and Niño Jesús leading the way. In fact, the first of these areas became a fashionable district last year for those who seek homes in gated communities with swimming pools, well connected and with an excellent provision of amenities at lower prices than in other similar areas of the capital.

the remaining 20% is made up of mainly foreign investors, generally South American and European. Last year, along with Mexican, Venezuelan and Colombian customers, there has been an increase in US and British buyers due to the housing bubble in Miami and Brexit. In different districts, the range of properties is very wide. From the large houses of Recoletos and Castellana between 200 and 400 sqm that exceed 10,000 euros / sqm up to Goya and Lista, where the flats between 100 sqm and 200 sqm that have registered a rebound of prices are as close to 5,000 euros / sqm.

Prices per square metre in Retiro (€)

Min.

Max.

Medium*

Jerónimos

3.200 9.500

7.000

Ibiza

3.100 7.600

5.000

Niño Jesús

2.600 7.500

4.500

Estrella

2.580 5.500

3.850

Adelfas

2.600 4.800

3.800

Pacifico

2.400 5.000

3.600

* Corresponds to the average price of homes for sale in the area.

Salamanca Recoletos and Castellana make up the most prime neighbourhoods in Madrid. Next to the elegant and spacious houses in aristocratic buildings from the 19th century, there are new-build properties of that are highly appreciated by international clients, of whom 80% are Latin American. Although the young Spanish middle-class buyer is still the main claimant of luxury housing (50%), a new type of buyer with a more senior profile looking for a new home has risen. The age range has increased significantly since 2009. If in those days the buyer between 25 and 35 years of age represented 65.7% of the market, currently it represents 41.4% while the age range of the clients among the 36 and 60 year olds has risen to 49.6% compared to 30.8% from eight years ago. 30% of the investment in this type of property has an investor profile, focused on Socimis, family offices, small investors and European investment funds, while

Prices per square metre in Salamanca (€)

Min.

Max.

Medium*

Recoletos

4.310

9.075

6.000

Castellana

3.622 13.698

6.573

Goya

3.288

5.935

4.672

Lista

3.120

6.279

4.905

Guindalera

2.392

3.639

2.894

Fuente del Berro

2.781

5.619

3.860

* Relates to the average price of homes for sale in the area

| 25


Rentals The rental market has continued to gain ground both among tenants and investors. Regarding the former, for an important part of the population purchasing a home is still difficult so they choose to rent since it allows greater flexibility and freedom. On the part of the investors, buying a flat to let in the most sought after areas of Madrid supposes a profitability of around 5%, much higher than other financial assets. Engel & Völkers focuses its rental business in the four most popular districts of the capital: Centro, Chamartín, Chamberí and Salamanca, where over the past year there has been an increase in operations of 15% that is expected to reach 30% in 2018. The most sought-after housing type in the center of Madrid is concentrated in flats of between 100 and 150 sqm with 2-3 bedrooms, renovated and unfurnished with a tenant profile that varies according to the district.

Centro: Young couples, singles and tourists looking for flats, studios or one bedroom homes, located in the neighbourhoods of Justicia and Palacio. The wide cultural and gastronomic offer of the area as well as the good transport link offered by the district is the most valued in an area where the average rent is 1,622 euros per month

Chamartín: This district, where the average price of rent carried out in 2017 by Engel & Völkers has been located at 2,386 euros / month, offers large flats of 150250 sqm, with garden areas. The tenant profile of this type of property is made up of families with children, both Spanish and foreign, who are attracted by the wide range of prestigious educational centres in the area. Chamberí: The neighbourhood of Almagro is preferred by executives and professionals looking for flats of 100-150 sqm that have a good commercial offer, leisure and public transport. In 2017 the average price of this type of property has been placed at 2,312 euros per month. Salamanca: Recoletos is the neighbourhood that is highly desirable today by singles and young families who rent in the district, where the high number of foreigners, mainly Europeans, stands out. The monthly rent rises to 2,497 euros, only exceeded by the district of Retiro, where the average price during 2017 has reached 3,309 euros per month.

Prices per square metre (€)

Min.

Max.

Medium*

Salamanca

7,57

53,6

20,55

Chamartín

9,2

61

17,42

Chamberí

7,5

67

19,17

Centro

8,5

55

20,66

* Corresponds to the average price of homes offered in the area

26 |


Popular areas around Madrid

Torrelodones

San Sebastián de los Reyes

Fuencarral - El Pardo

El Pilar La Paz Las Rozas Las Tablas

Villafranca del Castillo

Mirasierra Majadahonda

Moraleja

Sanchinarro Norte-Barajas

Puerta de Hierro Aravaca Pozuelo del Alarcón

Madrid Centro

Boadilla del Monte

Villaviciosa de Odón

Madrid‘s surroundings Pozuelo / Northwest Zone The offer in the north-west area of Madrid is composed of high-quality designed homes, luxury developments, with high security measures and excellent services. The average price of housing in this district was 2,200 euros / sqm last year. The locations with the highest prices are El Plantío, in Aravaca, with an average price of 4,458 euros / sqm, and La Finca, in Pozuelo, with 4,410 euros / sqm.

Prices per square metre in Pozuelo de Alarcón (€)

Min.

Max. Medium*

864

7.391

4.127

La Cabaña -Montegancedo

1.227 4.500

2.863

Montealina

1.571 6.167

3.869

Monteclaro

1.583 6.133

3.858

Zona Avenida Europa 2.049 5.417

3.733

Zona Estación

1.383 5.580

3.481

Zona norte

1.520 6.633

4.076

Zona Prado de 1.221 7.600 Somosaguas La Finca

4.410

Zona Pueblo

2.685

Somosaguas

870

4.500

* Corresponds to the average price of homes offered in the area

| 27


Prices per square metre in Pozuelo de Alarcón (€)

Min.

Max. Medium*

514

3.438

1.604

El Burgo

1.410 4.492

2.655

El Cantizal

1.015 4.150

3.140

Urbanización Golf

El Pinar-Punta Galea

980

3.846

2.220

Europolis

938

3.947

2.613

La Chopera

800

2.372

1.671

Las Matas

827

4.138

1.747

Marazuela-El Torreón

860

3.626

1.992

Molino de la Hoz

993

3.858

1.894

Monte Rozas

947

3.902

1.848

Montecillo -Pinar de las Rozas

1.761 3.733

2.793

Parque Empresarial

1.618 4.562

2.906

Rozas Centro

1.133 4.167

2.365

Yucatan-Las Cornisas 1.027 4.773

2.177

“Engel & Völkers plans to increase its operations by 10% in the northwest area of Madrid in 2018” Prices per square metre in Villaviciosa de Odón (€)

Min.

Max. Medium*

El Bosque

556

3.600

2.078

Pueblo

476

3.700

2.088

Castillo-Campodón

499

3.786

2.142

* Corresponds to the average price of properties for sale in the area.

* Corresponds to the average price of homes offered in the area

The most demanded properties in this residential area are detached and semi-detached villas. Most purchases are made by Spaniards and, among foreigners, mainly Chinese and South American. While Asians value security when it comes to finding a property, South Americans - mostly Colombians and Venezuelans prefer homes with large plots. For their part, Spaniards demand houses of up to 400 sqm.

Prices per square metre in Boadilla del Monte (€)

Min.

Max.

Medium*

916

3.284

1.989

1.290

3.462

2.314

El Olivar del Mirabal 1.072

3.059

1.772

Bonanza Casco Antiguo

Prices per square metre in Aravaca (€)

Min.

Max.

Medium*

1.000

7.000

3.391

Las Lomas

750

4.577

2.006

Valdemarín

996

6.300

2.661

Parque Boadilla

681

2.850

1.622

El Plantío

1.689

7.944

4.458

Sector B

1.073

4.054

2.583

Sector S

1.493

3.440

2.253

Montepríncipe

1.038

4.665

2.242

Valdecabaña

1.060

3.544

2.059

Valdepastores -Las Encinas

1.463

4.571

2.217

Viñas Viejas

1.141

3.129

2.029

Aravaca

* Corresponds to the average price of homes offered in the area

It should be noted that Valdemarín, within Aravaca, has become fashionable thanks to its good schools and access to Madrid. In Pozuelo, La Finca maintains its place as the most exclusive area and with a privileged security.

* Corresponds to the average price of homes for sale in the area

28 |


Majadahonda - Villafranca Del Castillo

La Moraleja

Majadahonda is one of the most popular locations in the northwest of the capital. The average price reached 2,800 euros / sqm last year, which represents an increase of 16.7% compared to 2016. The most sought after properties are penthouses and duplexes, which account for half of the sales. The Monte del Pilar area stands out, where the most modern houses and the best housing developments are located. The Golf area has also been highlighted this year, which is very much in demand by the medical staff due to its proximity to the Puerta de Hierro hospital.

Located in the north of the metropolitan area of Madrid and very close to the airport, La Moraleja, one of the most exclusive and popular residential areas in Spain, is subdivided into three urbanisations: La Moraleja, El Soto de la Moraleja and El Encinar de los Reyes. The area has two golf courses, several tennis clubs, medical and commercial centres, private security and is also the area with more private and international schools in the country. The profile of the tenant of La Moraleja is someone who looks for a multicultural environment, with many green areas, without renouncing the comforts of the city. For all these attributes there are many expatriates who choose this urbanisation to settle with their family. The average price - in terms of euro per square metre - of cases completed by Engel & VĂślkers in the area increased by 2.2% compared to the previous year. There is a huge dispersion of prices depending on the housing, the state or the urbanisation - even between urbanisations on the same street -.

The Spaniards are the main buyers followed by foreigners from Asian and South American origins. The largest increase has been observed in South American clients with high purchasing power who come to live in Spain and, generally, look for independent, large houses with gardens. For their part, Asians acquire chalets or spacious flats that have security 24 hours a day and in enclosed spaces. While Spanish buyers finance part of the property, foreigners usually pay cash. Prices per square metre in Majadahonda (â‚Ź)

Min. Max. Medium* Monte del Pilar Centro

1.800 5.200 926

3.500

3.800

2.363

Golf

1.921 5.100

3.510

Norte

1.600 3.800

2.700

Carretera del PlantĂ­o 1.300 4.290

2.795

Villafranca

2.035

800

3.270

* Corresponds to the average price of homes for sale in the area

The properties most in demand are flats, especially penthouses, semi-detached and single-family homes located in closed urbanisations and communal areas, a smaller type in La Moraleja. In global terms, approximately 19% of the owners of the three urbanisations of La Moraleja are foreigners, although the percentage of foreign buyers is significantly higher in larger and more expensive single-family homes.

| 29


Most of the purchases are made for private use. As for rentals, rent prices are high due to the demand of the important number of expatriates who decide to live in La Moraleja. Although profitability is lower than in the centre of Madrid, it attracts the high level of occupancy of property for rent. Prices per square metre in La Moralidad (â‚Ź)

Min.

Max. Medium*

Encinar de los Reyes

3.437 5.833

4.791

El Soto de La Moraleja

2.800 6.000

4.218

La Moraleja

2.030 7.500

4.437

* Corresponds to the average price of homes offered in the area.

Mirasierra - Puerta de Hierro Puerta de Hierro, Mirasierra and Montecarmelo are residential areas located in the northwest of Madrid. According to the operations closed in 2017, the average price remained in 2017 in line with the previous year, with a slight decrease of 0.5%. The most popular types of properties are flats, especially penthouses, bungalows and detached homes. The single-family homes in Mirasierra are also in great demand, located in plots of between 700 and 1,500 sqm and with prices between 1.1 million and 2 million euros. On the other hand, the single-family homes of Puerta de Hierro are, in general, much larger homes, both in built areas and in the surface of the plots. The prices of these properties in total exceed those in Mirasierra. Puerta de Hierro is a symbolic urbanisation of Madrid with more than 40 years of age that houses several embassies as well as the private residences of many ambassadors and diplomatic staff. The area also stands out for being the place chosen by many personalities and successful families who seek absolute privacy and a pollution-free environment, very close to Monte de El Pardo and the centre of the city. The price of homes reaches several million euros. In Mirasierra the first villas were built between 1950 and 1960 although it experienced its great boom in the 80s. The area has both chalets in plots of up to 1,500 sqm and

with fabulous flats and townhouses. The residents have a high purchasing power and look for a quiet area near Madrid. It is also chosen by many foreigners, among them Germans who live in Madrid and who choose this area since the German School moved to neighbouring Montecarmelo, with which Mirasierra has a direct connection. The arrival of the school has become fashionable among the Germans in Montecarmelo, where more than 20 German nurseries already operate. The neighbourhood is of recent construction and offers mainly flats of between 80 and 120 sqm. There is a great demand for young families, with young children and high purchasing power. It has a great gastronomic offer and all kinds of shops and services. The prices are the highest in the entire area. About 15% of homeowners in the area are foreigners, a percentage that will increase in the coming years driven by the large influx of the German community. They mainly seek villas with gardens. Prices per square metre in Mirasierra - Puerta de Hierro (â‚Ź)

Min.

Max.

Medium*

Mirasierra

2.663

4.421

3.579

Puerta de Hierro y Fuentelarreina

1.913

5.406

3.740

Montecarmelo

2.493

3.882

3.802

PeĂąagrande

1.643

4.435

3.037

* Corresponds to the average price of homes offered in the area.

30 |


Sanchinarro - Las Tablas - Valdebebas Located in the north of Madrid, they are very young neighbourhoods as their construction started at the beginning of the 2000s. They are mostly residential and family areas, where also the headquarters of important Spanish companies such as Telefónica or BBVA, and foreigners, are located. like Renault or BMW. Last year, the average sales price was 3,258 euros / sqm. Being a residential neighbourhood of young families and average purchasing power, the demand is mainly focused on two to three bedroom properties. In fact, there are not many people who live in four bedroom homes despite the fact that there is demand for them too.

“In 2018, Engel & Völkers expects a 10% growth in Sanchinarro, both in property sales and rentals.” Prices per square metre in homes for sale in Sanchinarro-Las Tablas (€)

Min.

Max.

Medium*

Sanchinarro

1.527

4.308

2.989

Las Tablas

2.082

4.931

3.359

Valdebebas

2.551

4.096

3.169

* Corresponds to the average price of homes offered in the area

Rentals The price of homes to let stood at 13.1 euros / sqm in 2017, 8.2% more than in 2016, with a clearly upward trend. The most popular neighbourhoods, just like in the case of purchases, are Sanchinarro and Las Tablas. The profile of the tenant is that of single people or company employees in the area who look for furnished one-bedroom homes. Families that want to move to these neighbourhoods prefer homes with one or larger bedroom. For their part, the landlords are investors or families that, for work or personal reasons move to another city.

The most popular areas are Sanchinarro, where El Corte Inglés and Sanitas La Moraleja Hospital are located, as well as Las Tablas, with the headquarters of BBVA and Telefónica. Valdebebas, at the moment, does not have the same demand especially because of its limited public transport and the lack of services such as schools, restaurants, pharmacies, etc. However, it is a fast developing neighbourhood where new properties are being purchased off-plan.

Prices per square metre for the homes for rent in Sanchinarro-Las Tablas (€)

Min.

Max.

Medium*

Sanchinarro

8,09

18,26

12,49

Las Tablas

8,75

15,44

12,11

Valdebebas

5,50

15,07

10,37

* Corresponds to the average price of the homes offered in the area

There are two buyer profiles. On the one hand, investors who buy one-bedroom homes, among which the Chinese stand out, with a more than notable increase in the number of purchases carried out. On the other hand, there are buyers who are looking for a home with at least two bedrooms. These are usually rented out to the Spanish. 66% of purchases are made by foreign customers - out of them 50% are Chinese- and 34% national. After the Chinese and the Spaniards, the biggest buyers in the area are Germans, Arabs and Venezuelans.

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Torrelodones The proximity to Madrid and the tranquility of the Sierra de Guadarrama are the two strong points of Torrelodones, located 29 km from the capital. The average price of homes in the area stands at 1,670 euros / sqm, which represents an increase of 27.6% over the previous year. The most demanded properties are single family homes up to 500 sqm.

La Berzosa - Hoyo de Manzanares: characterised by its tranquility and rustic surroundings with access to the A6. It is highly sought by Spanish couples looking for detached houses. Galapagar - La Navata - Parquelagos: affordable price, schools and good transport links. It is the area most sought by Spanish couples and singles looking for flats and families that want townhouses.

Most requested locations: Colonia Berzosilla: stately area with houses of more than 3,000 sqm of plot. It is the place chosen by Spanish families looking for independent and stately homes. Homogeneous South - Los Bomberos: this is the extension of Torrelodones, the fashionable area among buyers with newly built houses. The demand is formed by Spanish couples.. Casco urbano - Los Robles: close to all services and with good transport links, with exit to the A-6. These are Spanish families looking for flats and townhouses.. Las Marías - El Gasco: one of the most prestigious areas of Torrelodones, close to Renfe, with great privacy and a natural setting. Highly desired by families. Peñascales: offers privacy and a natural setting with views. The demand also focuses on Spanish families seeking detached homes.

Prices per square metre for homes for sale in Torrelodones (€)

Min.

Max.

Medium*

980

1.064

1.022

Colonia Berzosilla

2.616

2.735

2.675

Los Robles

2.388

2.622

2.505

Peñascales

1.269

1.356

1.312

Homogénea Sur

1.414

1.552

1.483

Alrededores

4.859

5.519

5.189

La Navata - Parquelagos

* Corresponds to the average price of homes offered in the area

Rentals The average rental price stood at 1,212 euros in 2017 compared to 1,571 euros in 2016. The most sought after homes to rent in the area are both flats and townhouses. Those looking for homes for rent do so in the same areas and with the same characteristics as those who want to buy a property. The location with the highest price per square metre is Colonia, where the rent reaches 10.11 euros / sqm. Northern zone - Barajas In the area to the north of the capital there are three very different areas. The first one, located around Prices per square metre for rental homes in Torrelodones (€)

Min.

Max.

Medium*

Alrededores

6,8

6,8

6,8

La Navata - Parquelagos

4,31

4,67

4,49

Homogénea Sur

4,66

4,75

4,7

* Corresponds to the average price of homes offered in the area

32 |


Nacional I (Fuente del Fresno, Ciudalcampo and Santo Domingo), is formed by single-family homes in plots of about 3,000 sqm within luxury residential developments. The buyer profile is drawn by Spanish and foreign families of great purchasing power. 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 mediumsized Spanish families can choose between small houses in the urban area at 900 euros / sqm and new build properties, both in blocks of buildings and semi-detached houses, at prices around 4,000 euros / sqm including garage, pool and communal garden areas. Finally, the area closest to Madrid consisting of Alameda, Corralejos and Paracuellos del Jarama, presents a wide range of properties with communal areas within an open price bracket that ranges from 1,700 euros / sqm from Paracuellos to 5,600 euros / sqm in Corralejos.

Prices per square metre in North Zone - Barajas (â‚Ź)

Min.

Max.

Medium*

San SebastiĂĄn de los Reyes

950

4.200

2.300

Algete / CobeĂąa

700

3.100

1.500

Ciudalcampo / Santo Domingo / Valdelagua

970

5.000

2.150

Paracuellos

800

3.400

1.700

Alameda

1.900

4.000

2.800

Corralejos

1.550

5.600

3.300

* Corresponds to the average price of homes offered in the area

| 33


Catalonia Activity area of MMC Barcelona

​Bages Anoia Baix Llobregat

Sant Cugat del Vallès Vallès Oriental y Occidental

Nou Barris Sant Andreu Horta - Guinardó Sarrià - Sant Gervasi Gràcia

Badalona

Sant Martí / Diagonal Mar

Eixample Les Corts

Ciutat Vella Sants-Montjuïc

Barcelona Zona Alta

become one of the most expensive areas of the city to reach an average price of 7,500 euros / sqm.

Exclusivity, privacy, tranquility and security are the main reasons why customers, essentially national, buy a home in Sant Gervasi, Sarrià, Vallvidrera and Turó Park. The prestigious Zona Alta congregates a wide offer of large sized properties that includes penthouses to single-family houses with gardens. All of them with average prices that exceed 4,000 euros / sqm. Turó Park, Santa Amelia and Galvany -which has a premium location at a lower price- are the most sought after neighbourhoods. The buyer profile is that of a person of high purchasing power, who values living near recognised educational and sports centers, far from the centre and surrounded by nature, but within the city. Specifically in Turó Park there is no more requested property typology and everything that goes on sale is snapped up quickly. This is one of the reasons why it has

34 |

“Turó Park, highly sought among national and international buyers with high purchasing power, has become one of the most expensive areas of the city. ”


Les Corts Les Corts perfectly combines the residential character of a district close to the elegant Pedralbes with the hustle and bustle of a strong presence of services. For this reason, it has a high demand of national clients that seek to live in a quiet area without renouncing the proximity of Avenida Diagonal, the Camp Nou and the universities of Barcelona and Polytechnic.

With an average price of around 4,400 euros / sqm, the most common buyers in the area are families with children looking for flats that exceed 100 sqm with a minimum of three bedrooms. Contrary to what happens in Zona Alta, where a good part of the purchases are made with little financing, in Les Corts most of the buyers turn to a mortgage in order to buy a property.

Price per square metre in Zona Alta (€)

Min. Sant Gervasi - Tres Torres Sant Gervasi - Balmes Sant Gervasi - Bonanova Sant Gervasi - Galvany Sant Gervasi - Putget Sant Gervasi - Turó Park

Max. Medium*

4.500 7.500

6.000

4.000 6.000

5.000

5.000 9.000

7.000

4.000 6.500

5.250

3.500 5.600

4.500

5.000 10.000

7.500

Sarrià - Can Caralleu

4.500 5.200

4.850

Sarrià - Casc Antic

5.500 6.800

6.150

Sarrià - Santa Amèlia

4.800 5.500

5.150

Les Corts Maternitat

3.600 5.200

4.400

Pedralbes

5.200 6.500

5.800

Vallvidrera

5.000 8.000

6.500

Rectoret - Les Planes

3.500 6.000

4.750

* Corresponds to the average price of homes offered in the area.

| 35


Eixample

Ciutat Vella The high concentration of monuments in a district plagued by semi-pedestrian streets and numerous plazas wrapped in medieval walls confer to Ciutat Vella. It has a unique atmosphere with a cultural and artistic lifestyle of Barcelona. There is prominence in streets that are full of history at prices more affordable than in the neighbouring Eixample. Fashionable neighbourhoods Borne and Gotico. Although the former continues to attract the attention of both national and international clients, Gotico has been the highlight of 2017 by its number of purchases.

Paseo de Gracia, Rambla de Cataluña and Enric Granados are the most sought after streets in the elegant Eixample. The prestige of the first, historically the most stately of Barcelona, leads to the most recognised luxury brands and hotels to settle in, which becomes an additional virtue for those who decide to live on the most expensive street in the city.

The proximity to the sea and the great cultural offer that the district boasts have turned Ciutat Vella into an attractive prospect for investors interested in a second home - for holiday use (44%) or to rent it out later (30%) -. Only 20% of Engel & Völkers‘ customers who have bought in Ciutat Vella have done it for own use. They are mostly singles or young couples without children.

The price of the flats in Paseo de Gracia has oscillated throughout 2017 in a narrow range of 9,000-10,500 euros / sqm, well above the 5,700-7,500 euros / sqm range in Rambla and the semi-pedestrian Enric Granados. French, Chinese, Turkish and Egyptian clients The situation in the nerve centre of the city places Eixample at the forefront of international clients, who account for 62% of the district‘s purchases. The most common nationality is the French (10%), followed very closely by Chinese (9%). Two new nationalities follow behind: Turkey (6%) and Egypt (5%). Due to the political situation of these countries, both nationalities have increased their presence in recent months by demanding renovated properties or new builds with prices above 500,000 euros in order to qualify for the Golden Visa. Among the buyers from the European Union, in addition to the French, they are also coming from the Netherlands and Italy. All of them, like the Americans, mostly buy houses that are ready to move into, while the Europeans choose properties that have an average area of around 80 sqm - the Americans prefers homes of about 165 sqm.

In this regard, it should be noted that foreigners who have monopolised 70% of these purchases consist of the French (14%), English (9%) and Americans (7%), in the lead. Both in Eixample and in Ciutat Vella, the most popular type of property is a top floor flat with a terrace, as well as those flats that have original features and are in good condition in terms of having hydraulic tile flooring and original woodwork Price per square metre in Eixample - Ciutat Vella (€)

Ciutat Vella Eixample

Min.

Max.

Medium*

2.900 3.500

8.800 11.600

4.433 5.712

* Corresponds to the average price of homes offered in the area.

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Nova Esquerra de L ‘Eixample / Sants-Montjuïc The heterogeneous zone framed between the Nova Esquerra in L‘Eixample and Hospitalet de Llobregat has registered a significant growth in real estate activity in 2017 with a significant increase in the number of purchases and, although to a lesser extent, also in prices. Specifically in Sant Antoni and Poblesec, which are maintained like other fashionable neighbourhoods, they have exceeded the average prices registered in the left part of Eixample, until surpassing the 5,500 euros / sqm in the most prime areas. The urban plan objective is to recover its traditional architecture, together with its central location and the varied leisure and gastronomic offer that attract both national and international clients. The firstthat account for 75% of purchases, value the family-friendly of some areas with all the services, while the foreigners seek small properties between 50 sqm and 85 sqm with traditional architecture and renovated buildings in well-connected areas.

While in Horta-Guinardó buyers choose to reside in one of the few landscaped residential areas of Barcelona, in Gràcia and Sant Andreu. They value living in neighbourhoods that look like small towns within a big city. From Barcelona‘s ‚Soho‘ to the future AVE station Gràcia and Sagrada Familia register the most expensive prices of the area. The one known as Vila de Gracia is a bohemian neighbourhood with a wide and varied gastronomic and cultural that has earned it the name of ‚Brooklyn‘ or ‚Soho‘ from Barcelona, which also combines a strong endowment of amenities and services. The average price of housing in Gràcia doubles in the quiet and familiar neighbourhood of Sant Andreu, which is beginning to rebound in the face of urban changes linked to the arrival of the new AVE terminal. The new station of La Sagrera, in what will be the second stop for the highspeed train in Barcelona, will mean a before and after for the district.

After increasing the volume of business by 61% in this area compared to 2016, Engel & Völkers foresees an increase of 20% for this year. Price per square metre in Nova Esquerra‘s L‘Eixample / Sants-Montjuïc (€)

Min.

Max.

Medium*

N.E. Eixample

3.082

5.423

4.196

Sant Antoni

3.776

5.492

4.618

Hospitalet

3.059

3.970

3.245

Sants

2.765

4.020

3.318

Poble Sec

3.238

5.702

4.537

An area where the most modern character is the fused innovator of Barcelona with the presence of the future developments. In the coming years, the large park that will follow the entire layout will cause extensive transformations in the lower part of the neighbourhoods of Sagrera and Sant Andreu.

*Corresponds to the average price of homes offered in the area

Gràcia, Horta-Guinardó and Sagrada Familia The national customer accounts for 63% of purchases of the homes in these districts where the most sought after properties are very bright and airy flats of about 100 sqm with three bedrooms and terrace. For their part, foreigners prefer loft style flats, pied a terre flats and properties with character located in Gràcia so they can rent them out later.

Price per square metre in Gràcia, Horta-Guinardó and Sagrada Familia (€)

Horta-Guinardó Gràcia Sant Andreu La Sagrera Sagrada Familia

Min. 2.900

Max. 4.600

Medium* 3.750

4.000 2.600

8.000 3.400

6.000 3.000

3.000 3.800

4.200 5.000

3.600 4.500

*Corresponds to the average price of homes offered in the area

| 37


Diagonal Mar, Vila Olímpica and Poblenou High-standing residential complexes in modern buildings share their space with museums, luxury hotels, offices, congress and business centres in Diagonal Mar, an industrial area that has been transformed in recent years into one of the most premium areas of Barcelona. Next to the Llevant beach and well connected to the city centre via public transport, the Diagonal Mar flats are spacious, bright and have spectacular views of the sea or the park within an area that is still under construction. An expansion that is not yet saturated with too many constructions. The price of Diagonal Mar homes, which are highly sought by investors, ranges from a wide and high range between 7,000 and 17,000 euros / sqm. The average price of 12,000 euros / sqm triples that of Vila Olímpica or Poblenou. While in the first, customers who are mostly foreigners, demand large flats of about 150 sqm with communal areas and garage. In Poblenou Spanish families configure the buyer profile of three bedroom flats with two bathrooms, which are increasingly difficult to find.

38 |

Price per square metre in Diagonal Mar, Vila Olympica and Poblenou (€)

Diagonal Mar

Min. Max. Medium* 7.000 17.000 12.000

Vila Olímpica

3.500 Sant Andriá del Besos 1.300

5.000 4.000

4.000 3.700

Badalona

1.800

3.000

2.300

Poblenou Zona Provençals de Poblenou

3.900

5.000

4.000

2.000

3.500

2.750

* Corresponds to the average price of homes offered in the area.


Baix Llobregat

Vallès Oriental and Occidental

Just a few minutes away from Barcelona there is an area with residential character and with a very complete offer of amenities and services. The urban areas most in demand consist of the largest part of the population of Baix Llobregat, Molins de Rei, Sant Boi, Martorell and Viladecans, although in other areas such as Corbera, Cervello, Torrelles and El Papiol, a significant increase in demand has been registered.

The quality of life and affordable prices compared to Barcelona make Vallès Oriental and Occidental an increasingly favourable option among national clients. The profile buyer is drawn up by families with children looking for a well-connected residence as their main home, with a wide range of amenities and large green areas.

The completions from Engel & Völkers in the region during 2017 have grown by 55% with an increase in the turnover of 73% - increases that will continue in 2018 although in somewhat more moderate percentages.

The consolidated but growing demand in Sant Cugat and Sant Quirze joins the progressive increase in the centre of Sabadell, where Engel & Völkers has practically quintupled its number of sales as well as in Vallès Oriental, where sales have grown by 200%. Sant Cugat remains the most premium area, with an average price that exceeds 3,500 euros / sqm. The most popular places in this town, located 12 kilometres from Barcelona, are Eixample and Parc central, where the scarce supply of property has boosted prices by 10%.

Although most of the buyers are national, it should be noted that the percentage of foreigners has risen up to 25% in purchases of homes that are concentrated in well-connected areas and houses that boast modern design and are close to nature

In 2017, the sales of single-family homes and land for the construction of detached houses have been significantly reduced, thus reducing the number of foreigners from 20% to 13%. Price per square metre in the Vallès (€)

Min. 2.017

Max. 4.769

Medium*

657 318

2.805 2.444

1.525 1.320

Cerdanyola

1.643

2.115

1.879

Sant Quirze

1.185

2.093

1.670

Sant Cugat Sabadell

Price per square metre in Baix Llobregat (€)

Baix Llobregat

Min. 1.047

Vallès Oriental Max. 2.480

Medium* 1.542

* Corresponds to the average price of homes offered in the area.

3.643

* Corresponds to the average price of homes offered in the area.

| 39


Rentals Sustained growth. This can be summarised by the rental behaviour in Barcelona during the past year. In 2017, the rental agreements by Engel & Völkers have risen 30%, which foresees an increase in rental income for this year, with a clear tendency towards moderation. The imbalance between strong demand and limited supply has led to a moderate increase in prices as is the case of Ciutat Vella, Eixample and Gràcia. There are two main reasons that explain the growing demand: on the one hand, the increase in the emancipation of young people benefited by the creation of employment and, on the other, the strong international demand. From the point of view of the offer, it is worth noting that the portfolio of the rental properties is made up of quality homes. It is observed that some older houses that were traditionally for rent have been put up for sale and are replaced by new houses that are bought with the aim of renting them out.

40 |

The most sought after locations Engel & Völkers focuses its rental business in the most sought after districts of Barcelona: Ciutat Vella, SarriàSant Gervasi, Eixample, Les Corts, Gracia and Sant Martí. However, last year there has been an increasing demand in Vallés, mainly in Sant Cugat and Badalona.


Ciutat Vella: In this area, there is still a high international demand. The price of property has had a more moderate rise in the third quarter of the year. The most sought after are well-located 80-100 sqm flats. Eixample: Furnished and well located properties in the most symbolic streets of the city, with special interest in charming modernist architecture estates, are the most sought after in a district where the average price is 14.5 euros / sqm. The average rent paid by tenants in the area already exceeds 2,000 euros a month after the strong increase in 2017. Sarrià-Sant Gervasi: Foreign families looking for properties of more than 150 square metres in the most exclusive areas make up the tenant profile in a district where proximity to exclusive schools is especially valued in the area. The average monthly rent exceeds 3,000 euros. Les Corts, Gràcia y Sant Martí: EIn these areas there is a strong demand from both national (due to its neighbourhood character, the residents who have always lived in Gràcia, Les Corts, Poblenou want to continue living there) and international buyers who are attracted by the proximity to the centre of the city and its uniqueness. Diagonal Mar is chosen by the international client for its modern types of properties on the beach and with spectacular sea views. The most popular homes in these neighbourhoods range from 50 sqm and 90 sqm, with average prices that stand at 15.7 euros / sqm, 12.6 euros / sqm and 16.1 euros / sqm, respectively.

The profile of the client The demand for rental properties in Barcelona is shared equally between national and international clients. The latter are 80% European, mainly British, Germans and from northern European countries. Foreigners who decide to rent in Barcelona are families with high purchasing power who are interested in prime locations or students who prefer the most central areas. Although contracts are usually formalized in periods ranging from six months to two years, Engel & Völkers has created a new rental division temporary for executives, students or future buyers who need temporary location in the search process. On the supply side, it is worth noting the increase in international clients who buy properties to rent them out and receive an annual gross return which is around 5%. Rent price per square metre in Barcelona (€)

Min. 12

Max. 20

Medium* 14,7

Ciutat Vella

12 14

30 25

14,5 16,2

Les Corts

12

20

15,7

Gràcia

12

20

12,6

Sant Martí

13

30

16,1

Sarrià-Sant Gervasi Eixample

* Corresponds to the average price of homes offered in the area.

| 41


Activity areas around Barcelona

Gerona Lérida Barcelona

Matadepera

Maresme

Terrassa

Sant Just Tarragona Sitges

Barcelona‘s surrounding areas Sant Just This municipality located in the Baix Llobregat region is part of the metropolitan area of Barcelona. It is only 10 km from the centre of the city. The average prices in the area they were in 2017 between 2,700 and 3,000 euros / sqm, 8% more than the previous year. The types of homes most in demand are the townhouses and villas of around 300 sqm in Sant Just and Sant Joan Despí, areas where buyers, mostly families, seek proximity to international schools. Spaniards account for 70% of purchases compared to 30% of foreigners in an area that has experienced an increase in buy to lets for investment purposes.

42 |

Mar Mediterráneo


Asking prices of properties in Sant Just per square metre (€)

Min.

Max.

Medium*

Esplugues

2.700

3.400

3.100

Sant Just

3.100

3.500

3.300

Sant Joan Despí

2.400

2.900

2.700

Sant Feliu

2.200

2.800

2.600

* Corresponds to the average price of homes offered in the area..

Rentals The rent price of a house in 2017 has been placed at 15 euros / sqm, which means an increase of 10% over the previous year. The most sought after properties are flats between 100 and 130 sqm and villas between 250 and 350 sqm. The multinational executives are the main tenants of the area and in 70% of the cases they are foreign Rent prices per square metre in Sant Just (€)

Sant Just

Min.

Max.

Medium*

12

18

15

* Corresponds to the average price of homes offered in the area.

Matadepera This municipality in the Vallès Occidental region, located at the foot of the Sant Llorenç del Munt National Park, is distinguished by offering tranquility and privacy in a privileged environment. Only 35 minutes from Barcelona it offers properties at a much cheaper price than in other locations closer to Barcelona.

year. The most sought after properties are townhouses or those between 200 and 300 sqm, with a plot that does not require much maintenance, and they must be near the centre. Although Matadepera has a wide range of urbanisations far from the urban centre, the more downtown is the area, the lower the land and the lower the minimum plot required to build. However, the price per square is also higher. The centre is the most requested area next to the urbanisation of Drac Parc, not far from the urban area, well connected with public transport and near one of the schools in Matadepera. The buyer profile in these urbanisations is made up of middle-class young families with children, between 35 and 45 years of age, while the central area is 50% in demand for young families and seniors looking for a flat or a small house. 95% of the buyers are Spanish. Asking prices of homes in Matadepera per square metre(€)

Min.

In 2017, the average price of an already built house stood at 1,700 euros / sqm, which represents an increase of 6% compared to the 1,600 euros / sqm in the previous

Max. Medium*

Centro

2.000 3.500

2.750

Verge Montserrat

2.100 2.800

2.450

Golf

2.000 2.700

2.350

Can Prat / La Plana

1.800 2.800

2.300

Drac Parc

1.500 2.500

2.000

Cavall Bernat / Can Robert

1.300 2.300

1.800

Les Pedritxes / Rourets 1.100 1.900

1.500

* Corresponds to the average price of homes offered in the area.

| 43


Rentals In 2017, the average price stood at 7 euros / sqm, although there is currently very little rental offer in the area. The most sought after properties are the threebedroom flats and townhouses that have communal areas. In the most popular urbanisations detached homes with a garden are the most requested by customers. Tenants also prefer the downtown area and its surroundings, due to the nearby Montcau La Mola school. Most of the tenants are between 35 and 45 years of age with one or two children. In the centre, the profile of tenant is divided among the third generation age group, which account for 20%; and the young people between 35 and 45 years of age.

Asking prices per square metre in Maresme (€)

Min.

Desde Tiana a St. 1.800 Andreu de LLavaneres Desde Arenys a 1.500 Palafolls

Max.

Medium*

3.500

2.400

2.500

1.900

*Corresponds to the average price of homes offered in the area.

Rental

Rent prices per square metre in Matadepera (€)

Min.

Max.

Medium*

Centro

6

11

9

Verge Montserrat

7

8

8

Golf

8

11

9

Can Prat / La Plana

7

11

9

Drac Parc

6

8

7

5

6

6

5

6

6

5

6

6

Cavall Bernat / Can Robert Can Solá del Racó / Pla de Sant Llorenç Les Pedritxes / Rourets

buyer profile is a detached house with sea views. These buyers are couples between 40 and 50 years of age with professional careers. The purchases are made up of 50% by foreigners and nationals and as long as the former prefer homes with sea views, Spaniards want more central areas close to colleges.

The demand for renting is very similar to buying and is divided equally between national and foreign customers with identical preferences focused on single-family homes with sea views. The average price of rents is 2,000 euros, although it is important to differentiate the cost of renting for the long and short term.

* Corresponds to the average price of homes offered in the area.

Maresme The proximity of the towns of Maresme to Barcelona is the main advantage of an area where you can buy a house with garden and views for the same price similar as a 100 square metre flat in the centre of Barcelona. Framed between the coast and the mountains, this region has 48 km of the coastal stretch to the sea and 16 coastal municipalities. The average property prices in this area are placed around 600,000 euros, within a narrow range between 2,000 and 2,500 euros / sqm. The most popular by a

44 |

Rent prices per square metre in Maresme (€)

Desde Tiana a St. Andreu de LLavaneres Desde Arenys a Palafolls

Min.

Max.

Medium*

6

11

8

5

9

7

*Corresponds to the average price of homes offered in the area.


Sitges Located in the Garraf region, Sitges is a very cosmopolitan coastal town that enjoys life all year round. 38 km from Barcelona, it has a great tourist infrastructure and is a very popular place to buy a main residence in or use a holiday home. This strong demand placed the average property price last year at 4,700 euros / sqm. The most sought after properties are the 100 sqm penthouses with sea views and the buyer profile is mostly foreigners who make up 65% of the purchases. By nationalities, the British, French and Dutch stand out. While the British and Russians are looking for detached houses, the Dutch and French opt for about 70 sqm flats. 75% of these buyers pay cash for the property, although the French and Central European nationals are the ones who mostly obtain a mortgage. Last year, investors opted for buy to lets mainly for the purpose of letting to tourists.

Asking prices of houses per square metre in Sitges (â‚Ź)

Sitges

Min.

Max.

Medium*

3.500

7.000

4.500

* Corresponds to the average price of homes offered in the area.

Rental In 2017, the average rent price in Sitges was placed at 13.5 euros / sqm. The most popular properties for rent are the flats in Vinyet and Terramar due to proximity to town and the sea as well as for its tranquility. Most tenants are families and professional couples, out of whom 65% are foreigners.

Rent prices per square metre in Sitges (â‚Ź)

Sitges

Min.

Max.

Medium*

12

16

13,5

* Corresponds to the average price of homes offered in the area.

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Activity area of Gerona - Costa Brava Francia

Roses

Gerona

CadaquĂŠs

Empuriabrava

L’Escala

Gerona Pals - Begur

Barcelona

Blanes - Lloret de Mar

Playa de Aro Mar MediterrĂĄneo

Gerona - Costa Brava Gerona Gerona stands out for being a busy city both culturally and commercially. Its proximity to the sea and the mountain offers a diversity of activities without forgetting its closeness to the French border and to Barcelona, with which it has excellent links via the motorway and AVE. All of these services are highly valued factors when it comes to choosing Gerona as a place of residence, where the average price of homes in 2017 stood at 2,806 euros / sqm, although on the outskirts of the city, the houses reached an average price of 1,507 euros / sqm. The properties most in demand are main residences in central locations and with areas of between 100120 sqm, in residential areas with a good offer of amenities and transport, with special preference of those near the high speed train station. La Devesa is the neighbourhood where demand has increased the most

46 |


Asking prices per square metre in Girona (€)

Min.

Max. Medium*

Fontajau

774

3.514

2.144

Barri Vell

123

4.344

2.233

Centre Carme

811

4.493

2.652

Eixample Nord

825

5.417

3.121

Eixample sud Migdia

843

4.094

2.468

Devesa

1.143 4.500

2.821

Mas Xirgu

1.000 2.205

1.602

Montilivi

938

4.375

2.656

Montjuic

789

4.750

2.769

Palau

750

4.900

2.825

Pont Major Pedret

352

3.083

1.717

Sant Daniel

330

3.333

1.831

Sant Narcis

800

2.812

1.806

Santa Eugenia

422

2.647

1.534

Pla de l’Estany

399

3.754

2.076

precisely because of its proximity to the municipal park, the station and the shopping centres. The other neighborhood is Barri Vell that has benefited by the increase in tourism. It has become a highly sought area by investors, foreign buyers and students.

Salt

124

2.360

1.242

1.358 3.175

2.266

However, the Centro-Eixample area has experienced higher prices. Eixample Nord, where the average price per square metre is placed at 3,121 euros, is sought by families, self-employed professionals and people who need access to AVE.

Fornells St.Gregori-Canet

212

3.636

1.924

Sarrià-Bordils

263

3.693

1.978

Quart-Llambilles

240

3.671

1.955

Caldes-Cassà (la Selva)

306

4.681

2.468

* Corresponds to the average price of homes offered in the area.

65% of purchases are made by Spaniards and The remaining 35% are foreign buyers with French, Dutch and English in the lead. We should also highlight a large number of athletes from various nationalities, especially cyclists who are among these buyers. Purchasing homes as an investment resurfaced again last year, mainly because of the increase in tourism, the expansion of the university, the introduction of the new Research Centre and, above all, by the saturation of Barcelona‘s property market.

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Rentals

Cadaqués

Average prices of homes for rent in 2017 were placed between 9 and 12 euros / sqm.

Tourism is the real engine of this municipality located the Alt Empordà region. The most eastern town of the Iberian Peninsula combines its bohemian character and exclusivity with a mixture of art and luxury. Cadaqués is very close to Barcelona and France and one of the most famous towns in Costa Brava.

The most sought after types of homes are two and three bedroom flats in residential areas that have amenities and are close to the AVE station and the shops. The percentage of tenants per nationality is identical to that of buyers, although foreigners seek flats in more tourist areas for part time stays, they are ahead of nationals who look for family homes. Rent prices per square metre in Girona (€)

Min. Max. Medium* Fontajau

5,91

10,00

7,95

Barri Vell

5,56

18,57

12,06

Centre Carme

8,00

10,50

9,25

Eixample nord

5,91

15,00

10,45

Eixample sud Migdia

6,25

20,75

13,50

Devesa

6,25

12,22

9,23

Montilivi

9,23

9,70

9,46

Montjuic

5,94

8,23

7,08

Palau

8,50

20,05

14,27

Pont Major Pedret

5,00

8,97

6,98

Sant Narcis

5,63

8,67

7,15

Santa Eugenia

6,67

10,56

8,61

Pla de l’Estany

5,90

9,43

7,66

Salt

3,33

8,43

5,88

Fornells

5,81

10,71

8,26

St.Gregori-Canet

5,83

11,67

8,75

Sarrià-Bordils

4,50

10,45

7,47

Quart-Llambilles

5,53

11,52

8,52

Caldes-Cassà (la Selva)

4,76

7,45

6,10

* Corresponds to the average price of homes offered in the area.

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The most popular homes are the luxury villas between 1.5 million and 3 million euros, while the most desirable are flats between 400,000 and the 600,000 euros. The front beach location is also the most sought after by Spaniards and foreigners, who dominate the market in equal parts. This is significantly different compared to 2015, when the national demand was 30%.

Prices per square metre in Cadaqués (€)

Cadaqués

Min.

Max.

Medium*

3.000

17.000

6.000

* Corresponds to the average price of homes offered in the area.


Empuriabrava The largest marina in Europe with more than 30 km of navigable channels that make boat mooring in front of one‘s own home possible. This is also has the largest parachuting centre, wind tunnel diving and multiple sea and mountain leisure activities. Properties with their own mooring are the most desirable and there is a lot of demand for modern Bauhaus housing style. The most sought after ones focus on detached houses for renovation up to 600,000 euros that go up to a million if they are new. Next to them, the flats with sea views of up to 250,000 euros and fishermen‘s houses with mooring up to 300,000 euros.

for this international client, who accounts for 60% of house purchases. 50% of buyers are French, 40% Spanish and 10% British, followed by Dutch, Germans and Italians. While the Gallic owners look for houses with views to the sea and near the beach, nationals demand homes with pool or next to the coast and the rest prefer villages 10 minutes from the beach by car. Prices per square metre in L‘Escala and L‘Estartit (€)

L’Escala L’Estartit

Min.

Max.

Medium*

1.500 1.200

3.500 3.200

2.500 2.200

* Corresponds to the average price of homes offered in the area.

The most popular homes are flats and houses with sea views. So the areas of L‘Escala and L‘Estartit, residential areas that have many beaches and a good port, stand out from the rest.

90% of buyers are foreign, 70% French and the rest is divided between Germans, Belgians, Swiss and Dutch. The rebound during last year stands out for Germans and Swiss. Prices per square metre in Empuriabrava (€)

Empuriabrava

Min.

Max.

Medium*

2.000

4.000

3.000

* Corresponds to the average price of homes offered in the area.

L‘Escala This coastal town of Alt Empordà is much more than just beaches and coves. It boasts the ruins of the Greco-Roman Empire of Empúries, the Greek remains important in Spain. The municipality is very attractive

Lloret de Mar - Blanes The south of Costa Brava, just one hour from Barcelona and 20 minutes from Gerona, has some of the most exclusives homes in Catalonia, such as Cala Sant Francesc (Blanes), Martossa (Tossa de Mar) and Mongoda (Lloret). Blanes Sant Francesc stands out the most. It is one of the most prestigious urbanisations

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in Costa Brava pursued by Russians, Germans and national clients, where the average price is 3,800 euros / sqm. It is followed by the Lloret Canyelles-Mongoda, where holiday homes are bought by foreigners, mainly by the Russians and with a price of 3,500 euros / sqm. Prices per square metre in Lloret de Mar - Tossa and Blanes (€)

Min.

Max. Medium*

Lloret

1.250 6.000

2.800

Tossa

1.500 6.000

3.000

Blanes

1.250 8.000

2.500

Montseny - Guilleries

800

2.500

1.300

La Selva Interior

600

2.300

1.300

In 2017, the average prices of properties reached 2,600 euros / sqm, in line with the registered figures in the previous year. Buildings or complexes with communal grounds, flats between 65 and 90 sqm or townhouses with garden and pool between 120 and 180 sqm are the most popular in the area. The locations most desired are those near the sea or golf courses with shopping facilities nearby. The most prominent areas are Llafranc, Calella de Palafrugell, Begur and the Pals Beach. The coast is desirable for young families seeking a second home.

* Corresponds to the average price of homes offered in the area.

The northern zone, located in the national parks of Montseny and les Guilleries, allows one to enjoy the nature with great privacy for customers who seek more exclusivity without giving up good transport links and the nearby beaches. The demand is mostly farmhouses or rural houses with prices ranging between 600,000 euros and 3 million euros.

Pals - Begur Located in Baix Empordà, the towns of Pals and Begur stand out for ring roads through impressive cliffs, steep and rocky coves, that give name to the coast of the region, Costa Brava.

The inner region that‘s full of country houses and charming cottages with medieval history, experience an increase in demand that until now was stagnant and records a rebound by families and retired people who look for the warm Mediterranean climate in quiet areas to live in. 70% of buyers are foreigners, 55% of them are Belgians and French. Prices per square metre in Pals - Begur (€)

Min. Max. Medium* Pals Platja

1.700 2.900

2.500

Begur

2.100 4.200

3.300

Calella de Palafrugell 2.800 5.200

3.700

Llafranc

2.800 6.500

4.000

Tamariu

1.900 3.700

2.800

Pals Centro

1.700 2.600

2.100

St. Sadurni de l’Heura, 1.100 2.300 Monells, Cruilles

1.800

Torrent - Palau Sator

3.100

2.100 3.600

* Corresponds to the average price of homes offered in the area.

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Platja d’Aro

Roses

Castell d‘Aro, with the castle of Benedormiens, and the tourist resort of Platja d‘Aro are the two most desirable towns, followed by S‘Agaró, one of the most exclusive areas in Costa Brava.

Located on the north coast of the Gulf of Roses, south of Cape de Creus, Roses is a major tourist resort, with urbanisations, hotels, beaches and two ports.

This is an area where holiday homes predominate and where the average price of properties ranges from the maximum of S‘Agaró - La Gavina, which reaches 9.250 euros / sqm, and the minimum of 1.375 euros / sqm in Llagostera. 70% of buyers are Spanish and they seek flats, while the remaining 30% are distributed among the French, Russians and Arabs who choose single family homes. S‘Agaró is one of the most VIP areas of Costa Brava that offers exclusivity to its buyers, who are mostly national couples with small children. Port d‘Aro is currently the fashion district of Costa Brava. Prices per square metre in Platja d‘Aro (€)

Min.

Max. Medium*

Platja d’Aro - 1ª línea 3.900 5.500 Platja d’Aro - Población Platja d’Aro - Urbanizaciones

4.700

1.800 2.400

2.100

3.300 4.500

3.900

S’Agaró - La Gavina

8.500 10.000

9.250

S’Agaró - 1ª línea

5.000 6.200

5.600

S’Agaró - Población

3.000 4.000

3.500

2.000 2.800

2.400

1.200 1.800

1.500

2.700 3.100

2.900

1.500 2.500

2.000

1.500 2.500

2.000

1.000 1.750

1.375

Sant Feliu de Guíxols - 1ª línea Sant Feliu de Guíxols - Población Santa Cristina d’Aro - Golf Santa Cristina d’Aro - Población Castell d’Aro - Población Llagostera - Población

* Corresponds to the average price of homes offered in the area.

In 2017, the average price of properties in the area stood at 2,524 euros / sqm, with a strong rebound of buy to lets and interest in holiday lets in summer. The most desirable properties are detached renovation houses up to 300,000 euros as well as newly built ones of up to 650,000 euros and flats with sea views. 90% of purchases are made by foreigners, 70% are French and the rest German, Belgian, Swiss and Dutch. On the other hand, 40% of the sellers are Germans, 30% French and the other 30% British, Russians and Dutch. Prices per square metre in Roses (€)

Min.

Max.

Medium*

Almadrava

3.112

8.806

4.767

Canyelles

1.575 10.000

3.215

820

2.529

2.430

Pau

1.285

6.152

2.520

Santa Margarita

1.779

7.353

2.400

Roses

1.151

5.630

2.023

Palau

* Corresponds to the average price of homes offered in the area.

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Activity area of Tarragona - Costa Dorada Lérida Barcelona

Aragón

Tarragona

Tarragona

Mar Mediterráneo

Castelló

Tarragona - Costa Dorada Tarragona A World Heritage Site by UNESCO, this year Tarragona will host a special event as the venue of the Mediterranean Games to be held between June and July. One more attraction to seize the moment for the property market in the city. The average price of the properties reached 1,475 euros / sqm in 2017, although in areas such as developments of Llevant have come to pay more than 6,000 euros / sqm. Buyers in Llevant, mainly families, value the proximity to the beach and to the city centre in a wellconnected area. Among the most popular areas, the Rambla neighbourhood, Nova remains the most prestigious location. For its part, the proximity to the beach d‘Arrabasada and the The centre of the city is the most appreciated in Via Augusta, where single-family homes prevail. The demand for housing in Tarragona is eminently national, and 75% of the buyers are Spanish, followed by the Swiss who account for 17% of purchases and the

52 |

Germans with 8%. Throughout 2017 there has been an increase in buy to lets that is expected to be maintained during this year. Prices per square metre in Tarragona (€)

Min. 588

Max. Medium* 1.874 4.074

Parte Alta Urbanizaciones de Llevant

820

3.600

1.534

952

6.476

1.929

Barrios Marítimos

540

3.500

1.358

Eixample

* Corresponds to the average price of homes offered in the area.


Activity area of Catalan Pyrenees - Gerona and Lérida

Francia Andorra

Cerdaña

Lérida España Gerona Barcelona

Catalan Pyrenees - Gerona and Lérida Cerdanya Associated with the most exclusive holiday homes, Cerdanya is located in a long valley at the Pyrenees massif through which the Segre River runs. This situation has created a border crossing between Catalonia, France and Andorra in addition to being in an ideal location for practicing many sports, mainly skiing. The most desirable properties are townhouses, which account for about 40% of purchases carried out, followed by single-family homes (28.5%), flats and plots. The views towards the valley and the mountains together with a direct exit to garden are the essential characteristics for the sale of a house. The usual customer in this area normally lives in urban areas and looks for a house to disconnect from the city.

ski slopes makes it the second town in the region in terms of sales, and Soriguerola, the top zone that has a high demand for ground floor homes with direct access to the field of Golf of Fontanals. Finally, Queixans, and within La Coma, are the only ones who have experienced a price increase last year. Llívia: is one of the most desirable municipalities for its uniqueness, tranquility and its wide range of gastronomic and cultural offers. The townhouses with garden in Cami d‘Ur and Cami Ral are the most popular.

The areas most in demand are divided into five: La Baga: near the Cadí tunnel and the Masella ski sloped and La Molina are charming towns with little offer such as Urús and Das. Alp also stands out, to which its great offer of services and proximity to the

| 53


Puigcerdà: capital of Cerdanya, it is the nerve centre of the region. The types of properties are the most extensive since there are more residents who live here all year round. In addition to blocks of flats and spacious townhouses with more affordable prices, the highlights of the area include villas from the late nineteenth and early twentieth century. Most of the holiday makers come to this area from Barcelona. Solana: in Bolvir some of the more prestigious and more expensive urbanisations that belong to Cerdaña like Real Club de Golf Cerdaña can be found. The average price here reaches € 3,200 / sqm, followed by Coruna and Les Espiraltes. In Guils de Cerdaña there is the Old Golf District, where large fincas with minimum plots of 6,000 sqm are owned by families of the Catalan high bourgeoisie and used for summer periods. Bellver: the area around the municipality is a combination of small towns and isolated farmhouses. It is one of the locations more extensive of the region and with less agglomeration of tourists despite its proximity to the Sierra del Cadí and to the Segre River. The buyer profile is middle class that seeks properties in urbanisations of El Pla and Tartera, in plots that range from 2,000 to 10,000 sqm, or small restored houses in more rural and quiet locations. Practically all the buyers and sellers in the area are Catalans, a percentage that has not changed in recent years. 80% of buyers are families with children looking for a second home and even a third residence, while 60% of the sellers are elderly people.

Prices per square metre in Cerdanya (€)

Min.

Max. Medium*

Alp

1.400 2.000

1.670

Masella (pie de pistas)

2.400 2.500

2.450

Das, Tartera

2.000 2.500

2.325

Fontantals Golf

2.300 3.000

2.600

Queixans 2.165 2.480 (Urbanización Coma)

2.290

Queixans

1.750 1.950

1.840

Bolvir, Real Club de Golf Cerdaña

2.500 4.000

3.200

Bolvir

1.230 2.650

2.020

Prats, Urbanización El Pla

2.000 2.500

2.225

Llívia

1.800 2.300

2.050

Puigcerdà

1.440 1.800

1.660

Bellver

1.580 1.750

1.690

Ger

1.375 2.350

1.705

Guils de Cerdanya

1.640 2.180

1.968

* Corresponds to the average price of homes offered in the area.

54 |


Valencian Community Activity area of MMC Valencia Aragón

Alameda-Costa

Mar Mediterráneo

Alrededores Centro

Castilla - La Mancha

Alicante Murcia

Valencia The city of Valencia is divided into 19 districts and subdivided 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-, Alameda-Costa, -Pla del Real, City of Arts and Sciences, Patacona, Malvarrosa, Alboraya, Puig, El Saler, Puzol and Cullera, among others-, and surroundings -Paterna, Rocafort, Godella, El Vedat, Bosque, La Eliana and Bétera-. The property market in Valencia stands out for its attractive prices compared to other large cities in the country. The capital of Turia has also positioned itself in recent months as a safe haven for investors who are fleeing the uncertainty created in Catalonia due to the nationalist conflict. Many of the companies that have decided to leave Barcelona have chosen Valencia to set up their headquarters. All this could turn 2018 into the best year for the city‘s property market since 2007.

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Centre This is the most sought after area of the city. In particular, properties that are more than 150 sqm, with three or more bedrooms in stately areas such as Pla de Remei and homes in buildings with high ceilings, mouldings and mosaic flooring are the most popular. Also penthouses are the most preferred homes, especially among foreigners.

The old town, Ciutat Vella: It is the historical, cultural and political centre of the city. Architectural gems like the Cathedral, the plaza de la Reina and the Miguelete are located here. In this area there is a consolidation of prices, with prices that vary between 1,445 euros / sqm and 2,585 euros / sqm and with La Xerea as the most expensive neighbourhood. This has caused an emergence of smaller sized properties for foreigners or investors who want to buy property to let. Extramurs and La Saïdia, middle-class neighbourhoods: These are the cheapest and most affordable areas in the centre of the city. In Extramurs a large number of sales has been observed, thanks partly to the improvement in mortgage approvals, especially in the neighbourhood of Arrancapins, where purchases have increased considerably compared to last year. Asking prices have reached between 1,517 euros / sqm and 2,424 euros / sqm. In La Saïdia there are two clear differentiations between homes that have views of the river and those that do not. The average price is between 1,238 and 2,426 euros / sqm.

Foreigners who buy the most property are Russians, Turks, Americans and Chinese as well as other nationalities like French, British, Japanese, Austrians and Bulgarians. Europeans and Americans look for refurbished homes with character for making a profit through renting and the eventual increase in its value. In the last few months the number of investment purchases have increased, with a growing interest in holiday rentals. The main difference between the foreign client and the national one is that the former usually buys rather than rents.

„Sales in the centre of Valencia have increased by 31.5% in 2017. For this year, an increase of 51% is expected.“ Eixample, the most exclusive area of Valencia: It is divided into three neighbourhoods: Pla de Remei, Gran Via and Ruzafa. The average prices vary between 3,294 euros / sqm and 1,481 euros / sqm for renovation buildings in the Ruzafa neighbourhood. Both the sellers and the buyers in this area are Valencian, mainly wealthy families from the Valencian bourgeoisie, although there is a growing larger number of international buyers.

Prices per square metre in the Centre of Valencia (€)

Eixample

Min.

Max.

Medium*

Gran Via

1.413

4.230

2.512

Pla Del Remei

1.495

5.645

3.394

Ruzafa

1.535

2.686

1.481

El Pilar

1.850

1.850

1.850

El Carmen

1.437

2.263

1.956

La Seu

1.134

2.535

2.131

El Mercat

1.434

2.263

1.757

La Xerea

1.393

2.934

2.348

Sant Francesc

1.419

3.666

2.217

1.111

3.512

1.991

Arrancapins

960

2.186

1.556

La Roqueta

2.349

2.349

2.349

El Botánico

1.647

1.647

1.647

1.238

2.426

1.832

Ciutat Vella

Extramurs Petxina

La Saïdia Llano De Zaidia Marxalenes

* Corresponds to the average price of homes offered in the area.

56 |


Alameda - Costa This area of Valencia is characterised by its heterogeneity since there are flats and houses on the sea and in the city. It is also a circumscription in full swing and with high expectations of growth, both in amenities and in prices. The properties with the greatest demand are the penthouses on the beach. The buyer chooses flats of more than 80 sqm with two bedrooms or houses with a minimum of 180 sqm and three bedrooms with pool. In the city, the most sought after are three or more bedroom flats with a minimum of 120 sqm. The average asking price amounts to 2,236 euros / sqm.

Buyer profile Two types of buyers coexist in Alameda - Costa: families with children and clients looking for a second residence on the beach. In the City of Sciences, Patacona and Pla del Real consist of the managers and important officials. 71.49% are domestic buyers and the rest are international with French, Swiss and Russian in the lead. Most foreign buyers seek second homes on the beach with a minimum of three bedrooms.

Most sought after areas The beach resorts are formed by the neighbourhoods of Patacona, Cabanyal and Malvarrosa. The proximity to the beach for the district of Cabanyal-Canyamelar has made it become one of the most fashionable locations of the city to reside in largely due to the increase in purchases made by investors for holiday lets. Pla del Real area is characterised by its proximity to the gardens of Turia as well as the centre of the city. The City of Sciences is the most modern area and avant-garde of the city. It excels by its international image.

“Engel & Völkers increased its sales in Alameda - Costa by 85% and the growth forecast for 2018 is 33%”

Prices per square metre in Alameda-Costa (€)

Min. Max. Medium* Trinitat, Orriols, 600 1.600 Torrefiel, Ayora Albors, Algirós 900 3.000 o la Vega Baixa Pla del Real, Ciudad de las Ciencias 1.200 5.500 o Patacona Poblaciones de Costa 800 4.000 Norte de Valencia Poblaciones de Costa 700 3.800 Sur de Valencia Urbanizaciones de alto 1.500 4.500 standing Poblaciones no 500 2.500 costeras

1.000 1.900 3.000 1.800 1.600 2.000 800

* Corresponds to the average price of homes offered in the area.

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Valencia‘s surroundings It is the most extensive area covered by the MMC of Engel & Völkers in Valencia. Composed of different types of properties heterogeneous within a wide range of prices, It can be distributed in three groups:

In the urban district, two types of households exist. Those who live in an accessible residential area in a spacious home with three bedrooms and those investors with a desire to use part of savings to buy a property and rent it out. These investors look for practical homes between 80 and 100 sqm, with good transport links, two or three bedrooms and the property must be in good condition.

The outskirts: El rango de precios oscila entre los 1.100 y 1.300 euros/m2. Los compradores buscan viviendas tranquilas, con servicios cercanos y bien comunicadas. Campanar: currently one of the most sought after neighbourhoods outside the centre. The average price is between 2,300 and 2,500 euros / sqm. All the buildings are less than 20 years old and have communal areas such as swimming pool, social club, sports tracks, etc. North and south residential area: Prices vary from 1,500 euros / sqm to 2,200 euros / sqm in the more exclusive areas.

National buyer The increase in purchases by the national buyer has to be the highlight of 2017, which accounted for 75% of the total figures and 10 points more than the previous year. Germans and Chinese are the most foreigners who buy in this region, followed by Russians, French, Swiss, Canadians, Italian and the British.

Prices per square metre in Valencia‘s surroundings (€)

Min. This territory stands out above the rest for having a unique character and business location thanks to its connection to the port, its proximity to the road that links Valencia with Madrid as well as the entire Mediterranean hub. The most common clients in this district are families with children looking for a large and detached home. Driven by the improvement in economic expectations, more and more buyers are nationals who are looking to change their residence from a flat to a detached property or a villa in order to extend their family.

Max. Medium*

Campanar

2.300 2.900

2.650

Eliana

1.600 2.200

1.800

Bétera

1.700 2.300

1.900

Vedat – Torrent

1.500 2.100

1.750

Urb El Bosque

1.900 2.500

2.000

Alzira

1.000 1.300

1.100

La Pobla de Vallbona 1.400 1.900

1.600

* Corresponds to the average price of homes offered in the area.

58 |


Rental The rental market in Valencia remains in full growth driven by investors and those who are unable to get a mortgage. The first group enter this market in search of high returns from buy to lets. In fact, profits from the rental market are much more than other financial assets. This is due to the tourism rental boom, which has special relevance in a city like Valencia as an important holiday and leisure destination. The average rent price per square metre for flats has reached 9.80 euros / sqm, although the range is between the maximum price of 13 euros / sqm in Eixample and Ciutat Vella and the minimum of 6 euros / sqm, which can be found in areas like Bétera, El Bosque, Godella, La Eliana and Paterna.

The increase of foreign tenants with a very high purchasing power is noteworthy. These tenants are mainly managers of large multinational firms who are mostly French, German and British. It is worth noting also the increase in American customers who are driven by the strength of the dollar as well as the emergence of countries that so far are not very common in the Valencian market, such as Kazakhstan and Romania, as well as a rebound of Russian tenants looking for luxury homes. There are five areas with the most demand for renting in Valencia: the City of Sciences, Cortes Valencianas, the beach of Valencia, Eixample and Campolivar - Santa Bárbara. The beach of Valencia is a fast developing zone impelled by the new urban development project for the city, which has aroused the interest of foreign clients and investors. In fact, it is one of those areas where the rental price has risen the most from a maximum of 8 euros / sqm in 2016 at 11 euros / sqm in 2017.

Rent prices per square metre in Valencia (€)

Profile of the tenant Three distinct profiles are distinguished according to the type of property: students, singles and couples without children, and families. The most common is a family with children, who on average has a high purchasing power. Thus, the 80% of rental demand focuses on multifamily properties within Valencia with approximately 120 sqm, three bedrooms, balcony and terrace, like penthouses. On the other hand, the search for housing in residential complexes with communal areas, pool, two to four bedrooms has increased. 20% of demand is concentrated in detached houses with garden and private pool.

Min.

Max.

Benimaclet - Zaidia - Alfahuir

7

10

Bétera (Mas Camarena - Torre en Conill)

6

7

Campanar - Cortes Valencianas

7

10

Ciudad de las Ciencias

8

11

Ciutat Vella

7

13

Eixample

8

13

El Bosque

6

8

Extramurs

7

11

Godella - Campolivar

6

8

La Eliana

6

9

Paterna (La Cañada - Valterna)

6

8

Pla del Real

8

11

Playa de Valencia

8

11

Puzol (Urbanización Monasterios)

7

9

* Corresponds to the average price of homes offered in the area.

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Activity area of Costa Blanca Castilla - La Mancha

Comunidad Valenciana

Denia Jรกvea Calpe - Moraira Alfaz del Pi Benidorm

Alicante Mediterranean Sea

Murcia

Costa Blanca Alicante Alicante is one of the most important tourist destinations in Spain. This is a city with good infrastructure in which different nationalities give it a cosmopolitan and multicultural flair. The Average price of property in 2017 was 1,865 euros / sqm, in line with the previous year. The type of property most sold by Engel & Vรถlkers is a flat or penthouse, preferably with sea views and large terraces; and as for the area, must be on the beachfront. The profile of the buyer is divided equally between national and foreign. Among the latter, countries with the largest number of buyers are Switzerland, Belgium, Holland, Scandinavian countries, Germany and East Europe.

60 |


Prices per square metre in Alicante (€)

Min. Max. Medium* Alicante Centro

1.500 3.750

2.625

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 - La Font 1.000 2.800

1.900

El Campello - Playas 1.000 4.500

2.750

El Campello Coveta - La Nuza

2.250

1.500 3.000

* Corresponds to the average price of homes offered in the area.

Benidorm - Finestrat - Villajoyosa Considered as the capital of Costa Blanca and also known as the New York of the Mediterranean, this is a city with more skyscrapers per inhabitant and the third city with the most hotel beds in Spain after Madrid and Barcelona. The most desirable properties in Benidorm are located on the beachfront and consist of new or refurbished penthouses with good views in good quality residential complexes. Many of the buyers are retired people who want a second home, but also families and singles. The seller is usually someone who has inherited the family home.

Finestrat‘s Sierra Cortina area and Terra Mitica. This residential area is booming thanks to its offer of newly constructed villas, its proximity to the sea, the mountain and several golf courses. It is highly sought by families who are seeking a first home in a quiet environment with privacy. Finally, Villajoyosa boasts a beach, a town centre, a large port and a yacht club. Aside from resales, new build properties predominate. On the demand side, buyers look for retirement properties while foreigners want a second home. 70% of the buyers are foreigners. They are divided into 50% among the citizens of Belgium, Luxembourg and the Netherlands and the other 50% between Germans, Swiss, Scandinavians and Russians. On the contrary, 70% of the sellers are Spanish. Prices per square metre in Benidorm, Villajoyosa and Finestrat (€)

Min.

Max.

Medium

*Benidorm 1ª línea

3.000 5.000

4.000

*Benidorm 2ª línea Rincón de Loix - Chalets unif. Villajoyosa 1ª línea - Puerto Finestrat - Obra nueva chalets

2.000 3.000

2.500

1.600 4.000

2.800

2.500 4.000

3.250

2.500 4.000

3.250

*1st and 2nd line of beach are all old buildings, the difference in price is in the condition and quality of the building and its number of floors. Corresponds to the average price of homes offered in the area.

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Denia Denia stands out for its 20 km of coastline and for being a municipality with an active population 365 days of year. In 2017, the average price of a property in Denia was placed at 1,932 euros / sqm, which represents a 12.3% increase over 2016. Flats and single-family homes are the most sought by the buyers. In addition, there is an increase in demand for new build villas.

Els Poblets - El Verger: affordable properties, also with the high presence of retired Europeans. Pedreguer: villas are the most desirable properties by residents. Ondara - Beniarbeig: main residences also chosen by residents. It has the average price of 1,000 euros / sqm. The outskirts: both villas and fincas are sought by all kinds of clients. 40% of buyers are Germans, followed by the Belgians who make up 20% of purchases. Behind them are the Spanish with 15%, the Swiss with 8%, the British with 4% and the Dutch with 2%.

Prices per square metre in Denia (â‚Ź)

The most sought after areas are: Las Rotas: this area stands out for its luxury and exclusive villas. The profile of the buyer is mainly an entrepreneur or businessman. It has the highest average price, with 2,350 euros / sqm. Las Marinas: holiday flats highly sought by families seeking a second home. Montgo: villas with sea views. The buyers are retired European and Spanish families. Casco urbano: highly sought by families who are residents in the city. La Sella: golf villas highly sought by golf lovers looking for a second home. Pego - Montepego: Villas with sea and mountain view are sought by retired Europeans.

62 |

Min.

Max.

Medium*

Las Marinas

1.200

1.800

1.500

Las Rotas

2.200

2.500

2.350

Montgo

1.500

2.000

1.750

Casco Urbano

1.000

1.500

1.250

La Sella

1.500

2.000

1.750

Pedreguer

1.200

1.600

1.400

Pego-Montepego

1.400

1.800

1.600

Els Poblets

1.100

1.500

1.300

800

1.200

1.000

1.400

1.800

1.600

Ondara-Beniarbeig Alrededores

* Corresponds to the average price of homes offered in the area.


Alfaz del Pi

Calpe - Moraira

One of the most touristic Alicante municipalities of Costa Blanca. The average price of property is based at around 1,569 euros / sqm, with an increase of around 4% per year, which has continued since 2015.

The north area of the province of Alicante includes Moraira, Calpe, Benissa, Cumbre del Sol, Teulada and Benitachell, towns near the airports of Valencia and Alicante and with ports near Ibiza and Majorca. The average price of the properties in 2017 rose to 2,154 euros / sqm, 12.6% more than the previous year. In villas, prices range from 1,077 euros / sqm for renovation villas in the Carrió urbanisation, in Calpe, and 4,400 euros / sqm that correspond to new builds in El Portet de Moraira.

The main market is divided into two types of housing: detached 10-year old houses and two or three bedroom flats with an average age of 15 years. The first ones are mainly used as first residence, while the flats are used as holiday rental.

The most notable difference is the maximum price increase from 3,472 euros in 2016 to 4,400 euros / sqm in 2017. This confirms the moderate but continuous recovery of the market. The most sought after areas are in Moraira, both the town and El Portet, Pla de Mar and Benimeit.

The most sought after area is El Albir, followed by high standing urbanisations located around Alfaz of Pi and La Nucia. In all three areas the demand is centred around foreign retirees as well as couples and families. 80% of buyers are foreigners, with important presence of Norwegians and Germans who seek new or renovation single-family homes.

The most desirable properties are not the same types as before. Last year the demand for fincas rebounded as buyers look for larger plots with high quality homes located within the plot of land. The demand for traditional style buildings originating in the 70s has also increased as they are purchased for a good price and renovated. Equally interesting is the rise in flats on the foot of the beach in Moraira. These are 88 sqm homes with two bedrooms and a bathroom in a residential complex that‘s only 50 metres from the beach of La Ampolla.

Last year the market opened its doors to the Russians and Belgians who were seeking detached newly built homes with land. 90% of the purchases are carried out without the need for investment and are paid with the liquidation of assets in their country of origin, pension funds, or inheritances. Prices per square metre in Alfaz del Pi (€)

Min. Playa El Albir

Max. Medium*

2.000 3.500

2.450

Alfaz del Pi/La Nucía 1.500 2.800

1.850

Polop

1.450

1.300 1.800

* Corresponds to the average price of homes offered in the area.

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All of the buyers are foreigners, a percentage that has increased compared to 91% last year. 33% are Russian, followed by the Germans with 27% and the French with 13%; the rest is divided between Poland, the Netherlands and France.

Prices per square metre in Moraira and Calpe (€)

Min.

Max.

Medium*

El Portet de Moraira 1.239

4.400

2.444

Benimeit (Moraira)

1.424

2.074

1.835

-

-

1.591

-

-

2.300

-

-

2.515

-

-

3.309

-

-

2.988

-

-

1.653

Maryvilla (Calpe)

-

-

4.294

Carrió (Calpe)

-

-

1.077

La Sabatera (Moraira) El Pinar del Advocat (Moraira) Cumbre del Sol (Benitachell) Baladrar (Benissa) Pedramala (Benissa) La Empedrola (Calpe)

3,000 euros / sqm. On the other hand, the national buyer prefers Tosalet, with its traditional Mediterranean villas, in addition to Arenal and Montañar Montgo, which are sought by foreigners. The Spaniards seek south facing homes as they are the sunniest .. 75% of the purchases are carried out by foreigners. Germans and Belgians, with 20% each, are the largest buyers, followed by British and, in smaller numbers, Swiss and French. Last year has been marked by the increase in the purchase of investment homes as well as the development of several new construction projects as their demand has increased again.

* Corresponds to the average price of homes offered in the area.

Jávea Located between Denia and Moraira, Jávea has a remarkable historical centre and a wide offer in various urbanisations near the sea. The area has its main tourist attractions in Arenal beach and the capes of San Antonio and de la Nao. Most of its population is made up of foreigners (just over 50%).

64 |

Prices per square metre in Jávea (€)

Min.

Max.

Medium*

Tosalet

1.400 2.000

1.700

Adsubia-Golf

1.300 2.000

1.650

1º Montañar

1.600 2.100

1.850

The average price of housing reached 2,415 in 2017 euros / sqm, 12.3% more than in 2016. The single-family house is the most desired by buyers, followed by plots of land, flats, and townhouses.

2º Montañar

1.700 2.200

1.950

Balcon Al Mar

2.000 2.400

2.200

Montgo

1.600 2.000

1.800

Non-residents are attracted to the Balcón al Mar areas and Adsubia-Golf for their traditional villas and the sea views; also the area of Puerto-La Corona, for its luxury villas. This last location has the highest prices,

Puerto-La Corona

2.500 3.000

2.750

Casco Urbano

900

1.900

1.400

* Corresponds to the average price of homes offered in the area.


Andalusia Activity area of Costa del Sol

Málaga Málaga Este

Cádiz

Marbella Oeste Marbella Este Estepona

Marbella Milla de Oro Puerto Banús

Sotogrande

Mediterranean Sea

Costa del Sol East Malaga The capital of Costa del Sol is the sixth most populated city in Spain and the second in international projection, according to the 201IESE study ‚Cities in Motion‘ of 2017. It occupies the thirteenth position worldwide in this ranking, surpassed only by Barcelona in our country. The cultural offer and its commitment to innovation are the keys of the projection of the city, to which we must add infrastructures, a strong business network, a complete hotel, congress, gastronomic offer, sunshine and beach. In a market in which foreigners have taken up 54% of purchases, in 2017 prices reached an average of 2,872 euros / sqm, 11.5% more than the previous year. The most sought after properties are penthouses and detached houses and the most popular areas are La Malagueta and the historic centre, both with the highest average price of the city, 3,000 euros / sqm. The centre has experienced an authentic housing boom before the massive arrival of foreign investors looking for a second residence.

The greatest demand is focused on La Malagueta which, being on the beachfront, there is a continuous rise in the prices before the shortage of land. The district follows seaside locations where the presence of foreign residents in neighbourhoods like El Limonar, Pedregalejo or Cerrado de Calderón can be seen. The prices are around 2,500 euros / sqm.

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Estepona

Asking prices per square metre in Málaga (€)

Min.

Max.

Medium*

-

4.500

1.200

Centro

2.000 8.000

3.000

Malagueta

2.200 8.500

3.000

Limonar

1.900 6.500

2.500

Cerrado de Calderón 1.800 3.200

2.400

Pedregalejo

2.500

Oeste

Palo

1.800 4.000 -

4.000

2.000

* Corresponds to the average price of homes offered in the area.

Rental The rental market has gained momentum in the city thanks to the supply being well below the demand. The average price of a house for rent is at 12 euros / sqm, 20% more than last year. The most sought after properties are flats between 100 sqm and 150 sqm. Foreigners look for the central area and La Malagueta while the locals prefer the neighbourhoods of Cerrado de Calderón and Limonar The area of Pedregalejo, a neighbourhood with little offer, has registered a significant increase in prices and demand. The rental market is divided 50% between nationals and foreigners.

Max. Medium*

Oeste

4

7

6

Centro

6

15

10

Malagueta

8

20

10

Limonar

9

22

12

Cerrado de Calderón

8

12

10

Pedregalejo

8

15

11

Palo

7

15

9

* Corresponds to the average price of homes offered in the area.

66 |

Penthouses and villas on the beachfront or with sea views are the most desirable properties. The price of homes in 2017 was calculated to be between 2,000 and 8,000 euros / sqm with an average price of 1,928 euros / sqm, 5% more than in 2016. The most desirable zones are the New Golden Mile, where the average price has been the highest in Estepona and has reached 3,000 euros / sqm and the city center, the new fashion district. Other highly popular locations are Atalaya, Paraíso, Cancelada, Selwo and El Padrón. 90% of buyers are foreigners, 20% German and another 20% British, highlighting an increase in Belgian, French and Scandinavians. The Spaniards seek apartments while Central Europeans look for villas and penthouses. The property market of the city has registered a rebound in buy to lets as an investment, especially those who search for plots of land and new build properties.

Prices per square metre in Estepona (€)

Rent prices per square metre in Malaga (€)

Min.

An extraordinary climate, 28 kilometres of coastline, good infrastructures, top investment opportunities and a wide variety of prices have placed Estepona as one of the most popular places in the Costa del Sol as a holiday destination.

Min.

Max.

Medium*

Atalaya

1.000 4.000

2.000

Paraíso

1.000 4.000

2.000

Cancelada

1.000 3.000

1.500

Selwo/El Padrón

1.000 3.000

1.500

Estepona City

1.000 5.000

2.000

Estepona West

1.000 4.000

1.500

Beachside New Golden Mile

2.000 8.000

3.000

* Corresponds to the average price of homes offered in the area.


Marbella Marbella is one of the most tourist cities in Andalusia and has a high occupation all the year round thanks to its excellent climate and infrastructures.

East Marbella The price of property ranges from 250,000 euros and 2.5 million euros, which puts the average price of purchases slightly above one million euros. The most desirable properties are the newly built villas and the most popular areas are Las Chapas and Marbesa urbanisation. Los Monteros and the Bay of Marbella also stand out as the best locations in East Marbella as well as Elviria. 95% of buyers are foreigners. The property market has also registered a rebound of buy to lets, with special interest in renovation homes for up to 700,000 euros.

Prices per square metre in East Marbella (€)

Min. West Marbella The services available to people along with the infrastructures, the established international schools in the area and the security it enjoys make this region one of the most sought after. 80% of buyers are foreigners. Flats are sought by middle-aged couples or elderly citizens, while families are interested in plots and villas. Last year there has been a rebound of purchasing plots for investment as well as bank repossessions that were resold. Prices per square metre in West Marbella (€)

Min.

Max. Medium*

San Pedro de Alcántara 1.000 5.900

3.000

Guadalmina Alta

2.900 6.700

4.700

Guadalmina Baja

2.800 7.900

5.000

Los Arqueros

1.900 5.600

3.000

La Alqueria - Capanes Sur

1.500 5.000

4.000

El Paraíso Alto

1.900 4.800

3.500

Los Flamingos

2.100 6.200

5.000

Monte Mayor

2.600 5.500

3.100

Marbella Club Golf

2.100 6.000

4.500

Max.

Medium*

Bahía de Marbella

3.500 17.500

5.000

Los Monteros

3.500 20.000

6.000

Elviria

2.000

8.500

3.750

Elviria Alta

2.000

8.500

3.250

Hcd las Chapas

3.500 15.000

5.000

Marbesa

2.500

9.000

3.750

El Rosario

2.000

6.000

3.500

Río Real

2.500 10.000

4.000

Cabopino

2500

6.000

3.500

Costabella

2.000 10.000

3.700

Chapas Playa

2.500

4.000

9.500

* Corresponds to the average price of homes offered in the area.

* Corresponds to the average price of homes offered in the area.

| 67


The Golden Mile

Puerto Banús

The territory that forms the Golden Mile in Marbella comprises of five kilometres of coastal strip. Symbol of luxury, it has one of the most exclusive and sought after property markets in Europe, what has been noticed by investors as they are increasingly buying properties in this area.

One of the biggest entertainment centres of the Costa del Sol is located between the city of Marbella and San Pedro de Alcántara. Considered as the largest luxury destination of southern Spain, the prices of the properties in Nueva Andalucia are among the 3,000 and 3,500 euros / sqm for the flats, while the villas have an average price of 5,000 euros / sqm. The most desirable areas are Puerto Banús, Nueva Andalucía and La Zagaleta, which is the most exclusive area with an average price of 6,000 euros / sqm.

The average price of the area is 3,550 euros / sqm and the most popular types of home are divided between villas and flats. Puente Romano, Casablanca and Río Verde Bajo benefit by their proximity to the coast and are booming locations. Also noteworthy are Nagüeles, Altos Puente Romano, Sierra Blanca -the most exclusive area-, La Carolina and Las Lomas de Marbella Club. The profile of the buyer consists of an investor and families looking for a second home, preferably for newly built and modern villas or flats near the beach. 85% of buyers are foreigners, highlighting a growing interest last year by Belgians, Swiss and Norwegians. Prices per square metre in the Golden Mile (€)

Min. Max. Medium* Nagüeles

1.500 4.950

2.800

Casablanca

3.000 7.500

6.000

Puente Romano

4.000 9.000

6.500

Altos de Puente Romano 1.800 3.300

2.500

Sierra Blanca

2.800 7.500

4.900

Cascada de Camoján

2.500 5.400

3.565

La Carolina

2.500 4.500

3.500

Lomas de Marbella Club 2.200 2.700

3.300

Río Verde Bajo

3.900

2.800 5.000

* Corresponds to the average price of homes offered in the area.

68 |

More than 70% of buyers are foreigners, with an increase in arrivals from northern Europe. In Nueva Andalucía most buyers are British and Scandinavians. The former prefer semi-detached houses and flats, while buyers from the north of Europe look for villas. Puerto Banús is in very high demand from Arabs and the French. Furthermore, the increase in the number of investors has been greatly noticed. They look for properties to renovate and sell for profit. Asking prices per square metre in Puerto Banús (€)

Min.

Max.

Medium*

Puerto Banús

3.000

7.000

4.000

Nueva Andalucía

3.500

5.000

4.500

La Zagaleta

4.000

10.000

6.000

* Corresponds to the average price of homes offered in the area.


Rental The average rental price stood at 1,300 euros a month for a flat of 75 sqm. The type of the most desirable property to rent consists of a furnished flat with two bedrooms in the most sought after area, Nueva Andalucía. The profile of the landlord is very varied, from families with school aged children to retired couples who are retiring in the Costa del Sol or foreign workers. In fact, 75% of people looking for rental accommodation are foreign, mostly British and German. Engel & Völkers has seen an increase in its number of rental agreements in Puerto Banús during 2017 by 70% and anticipates a 100% growth for this year.

Rent prices per square metre in Puerto Banús (€)

Min. Nueva Andalucía

20

Max. Medium* 72

45

* Corresponds to the average price of homes offered in the area.

House prices move in a range of between 2,000 and 8,000 euros / sqm, with an average price that stood at 4,000 euros / sqm last year, 5% more than in 2016. Penthouses with three or more bedrooms in the port and the modern villas of between 500,000 euros and a million euros are the most desirable. The most sought after area is La Marina and, next to it, Sotogrande Costa and Sotogrande Alto. 80% of buyers are foreigners, 20% of them British, another 20% German, Swiss and Austrian, and 10% Belgian and French. The profile of the buyer comprises of aworking professional, all of whom are young families. Regarding the most popular type of property, Spaniards prefer flas and Europeans prefer villas and penthouses. 90% of buyers make the purchase without resorting to borrowing money from the bank.

Sotogrande Located in the municipality of San Roque, in the province of Cádiz, the urbanisation of Sotogrande has a total of five golf courses, including the mythical Valderrama, mooring for yachts next to every building, Polo Club Santa María, 24 hour security in all the areas and all together some great beaches and a high class gastronomy offer.

Prices per square metre in Sotogrande (€)

Min.

Max. Medium*

Sotogrande Marina

2.000

6.000

3.000

Sotogrande Costa

3.000

8.000

5.000

Sotogrande Alto

2.500

8.000

4.000

* Corresponds to the average price of homes offered in the area.

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Northwest area of Spain Activity area of Galicia La Coruña

La Coruña Lugo

Pontevedra Atlantic Ocean

Orense

Vigo

Galicia La Coruña La Coruña, closely linked to the fashion industry and good gastronomy, also has a great historical and tourism interest in which its natural landscape and beautiful beaches stand out. The centre of the city extends over a peninsula, which is why it presents two maritime façades: its port, towards the estuary of La Coruña; and the open sea, towards the Ensenada del Orzán, and on which they extend to the main urban beaches, Riazor and Orzán. The average price of flats in 2017 has been approximately based at 2,430 euros / sqm, which means an increase of 10.5% compared to the previous year. The price of the houses is lower, as the average price is placed at 1,196 euros / sqm, which is an increase of 8.7% since 2016.

70 |


The most sought after areas are in the Ensanche, highlighting Juan Flórez and its surroundings as the Plaza of Lugo, Orense and the one called Vigo. These are all neighbourhoods with centric buildings that have quality flats in beautifully restored buildings with beautiful facades, high ceilings. It is appropriate to highlight Cuidad with a very demand specific. The average price in these areas is the highest the city and is around 3,500 euros / sqm.

or renovated and preferably with garage or parking. The average rent for a 107 sqm flat is 910 euros per month. The most desired areas are those that stretch from the Ensanche to Cuidad, being the second option the Plaza de Espana since its price is lower and it is still in the centre. This area, together with the Pescadería one, has seen an increase in its number of tenants.

Interest in the real estate market as an investment has resurged strongly in the city so that the number of investors has tripled in 2017 compared to last year. The homes most in demand by the national buyer are the new or renovated flats of 100 sqm with three bedrooms, with parking or garage, two bathrooms and an average price that ranges between 300,000 and 350,000 euros. Asking prices per square metre in La Coruña (€)

Min.

Max.

Medium*

Calle Real - San Andrés - Orzán

1.363

3.181

2.000

Ciudad Jardín

2.500

5.000

2.633

Ciudad Vieja

2.916

4.500

3.141

Cuatro Caminos

1.500

2.500

1.900

Falperra - Juan Flórez 1.662

3.789

2.200

Maestro Mateo - Los Puentes

2.399

3.181

3.155

Centro Ensanche

2.800

4.088

3.300

La Zapateira

1.200

1.325

1.287

The profile of the landlord is that of a person between the age of 40 and 65, mainly from the city, who has invested in a second home and rented it out. For its part, the tenants are a young couple between 18 and 35 years of age, with a university degree and related professions in the textile sector or businessmen from Galicia and the rest of Spain. 10% of the people who rent are foreigners, mainly European and mostly British, French and Italian. Rent prices per square metre in La Coruña (€)

Oleiros Oleiros

800

1.780

1.250

Culleredo

800

850

900

* Corresponds to the average price of homes offered in the area.

Rental The price of rental flats has remained almost invariable with respect to 2016, registering a small rise by one euro sqm. The most demanded homes to rent are the flats of between 70-90 sqm, with two or three bedrooms, new

Min.

Max. Medium*

Ciudad Vieja

7

13

10

Falperra - Juan Flórez

5

10

8

Calle Real - San Andrés - Orzán

6

18

11

Centro Ensanche

8

12

11

Maestro Mateo - Los Puentes

6

8

7

* Corresponds to the average price of homes offered in the area.

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Vigo The largest city of Galicia stands out for its industrial area character, as well as being a first class tourist destination thanks to a privileged climate and its recognised gastronomy. The most demanded areas of the city are concentrated in the Centro-Areal area, followed by Venezuela-Plaza de España and the area of El Corte Inglés-Casablanca. The average representative price in the central district of Vigo, in Alameda-Arenal, where the most representative streets of the city such as the Plaza de Compostela, Montero Ríos, Rosalía de Castro y García Barbón, is between 3,000 and 5,000 euros / sqm.

Asking prices per square metre in Vigo (€)

Min.

Max.

Medium*

Areal Zona Centro

3.000

5.000

4.500

Casco Vello

1.500

2.500

2.000

1.500

2.500

2.000

1.000

2.000

1.500

Plaza de España - Casablanca As Traviesas - Balaidos

* Corresponds to the average price of homes offered in the area.

Rental Rental prices have increased by 15% in 2017 with an average figure that stands at 9.88 euros / sqm. The most demanded houses to rent are the that have three or four bedrooms and the most sought after are Plaza Compostela, Rosalia de Castro and García Barbón streets. The choice of tenants is influenced by the exclusivity of the area, services, green areas and the preference for the flatter streets of the city. The most representative prices in these areas are: Flats with 4 bedrooms, 160 sqm 2..................1.600 euros Flats with 3 bedrooms, 120 sqm ..................1.200 euros Flats with 2 bedrooms, 70 sqm .....................800 euros Flats with 1 bedroom, 50 sqm ..........................650 euros Studio, 40 sqm ..............................................450 euros

The most sought after housing is a flat on the upper floor with a surface of around 120 sqm and two or three bedrooms, garage and views of the estuary. The profile of the buyer is that of a person between 41-50 who is selling his or her house to buy a new one. Last year, a rebound in investment property purchase has been noticed in the form of buy to lets given the high profitability offered by the properties that are to be let. The average budget of those who choose to invest in a buy to let property in Vigo is about 120,000 euros and they look for homes of 50 sqm, studios or with one bedroom and garage.

“Engel & Völkers has increased its sales by 7.6 per cent in Vigo. This year the forecast is to grow close to 43%”

Casco Vello has become fashionable in the last few years positioning itself as the coolest area to live in Vigo thanks to having gone under extensive renovation.

“Engel & Völkers has tripled its number of rental agreements in Vigo during 2017” Rent prices per square metre in Vigo (€)

Min.

Max.

Medium*

Areal Zona Centro

16

20

18

Casco Vello

5

8

6

10

14

12

5

10

7

Plaza de España - Casablanca As Traviesas - Balaidos

* Corresponds to the average price of homes offered in the area.

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Activity area of Cantabria

Bay of Biscay

Santander Asturias

Cantabria

País Vasco

Castilla y León

Cantabria Santander Organised around its natural port, Santander is one of the most stately and elegant cities of the North coast of the country. The nineteenth-century buildings, its spectacular bay and related activities with culture, leisure and tourism are the big attractions of the city and the basis of its economy. The most desirable areas are the following four: Centre: this is the most sought after location of the city with a wide range of prices, very good transport links and services. It is one of the oldest neighbourhoods with old houses that mostly require extensive renovation. The neighbourhood has been favoured by the concentration of people who come from other parts of the country or the area‘s surroundings to live here.

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In 2017, the average price of housing has decreased by 3.5%. Taking as reference a housing of 177 sqm, the average price has been based at around 2,219 euros / sqm. Prices per square metre in Santander (€)

Centro - Ayuntamiento Centro - Calvo Sotelo G. Davila - Daoiz y Velarde Paseo Pereda - Castelar Sardinero Sardinero: highly demanded by foreigners and tourists, it has a concentration of a lot of summer residences being very close to the best beaches of the city. It is the residential district par excellence of Santander, with the most sought-after flats, large size homes or representative single-family houses. Paseo de Pereda / Castelar: old area that stands out for its excellent views over the bay. Achieves very high prices and is a neighbourhood in high demand by the buyer who has high purchasing power. The few purchases that take place in the area approach or surpass the million euros. Valdejona: as this is an expanding area of the city it has newly built homes and residential infrastructure within urbanisations. The price-quality ratio is somewhat better than in the rest of the city. The profile of the buyer in Santander can be divided into two: on the one hand, couples aged between the ages of 40 and 55 that account for 80% of the demand and, on the other, singles that seek property within a low pric range. The typology of housing most demanded is that of three or four bedrooms around 400,000-700,000 euros, where purchases are mostly made without the need to resort to financing. There‘s hardly any demand from foreigners, who only make up 3% of the purchases in the city.

74 |

Min.

Max. Medium*

900

1.500

1.277

1.500 2.500

2.055

1.200 2.100

1.720

1.800 5.900

2.345

1.900 6.000

2.459

San Martin 1.100 1.900 - San Roque - M.Pelayo Camilo A.Vega 800 1.500 - Cisneros C.Burgos - Alta C.Castilla-Marques de la Hermida C.Jardín - San Fernando - Floranes

1.551 1.177

600

1.400

1.153

900

1.600

1.323

1.200 1.900

1.475

Peñacastillo - Alisal

900

1.700

1.144

Valdenoja - Monte - San Román

900

2.500

1.660

* Corresponds to the average price of homes offered in the area.


Northeastern area of Spain Activity area of Basque Country Bay of Biscay France Vizcaya

San Sebastián Guipúzcoa

Cantabria

Vitoria-Gasteiz Àlava Spain

Basque Country Saint Sebastian San Sebastian is a cosmopolitan city to which its beaches and views confer a special charm. Capital of the province of Guipúzcoa, its small size makes it easy to unwind in its streets that are in a large infrastructure city. Gastronomy has put San Sebastian in the spotlight, being one of the cities with more restaurants with Michelin Star than most other places in the world. There is a greater demand in the search of houses both in the centre and in the outskirts, where the price is lower and you can find mansions for the cost of a flat in the centre. The most desirable regions are the following: Romantica Area: stands out for the comfort of its location and its historic buildings. The profile of buyer is that of an older and wealthy person, and many of them are foreigners. Miraconcha: luxury residential neighbourhood in front of the bay of La Concha. Buyers are usually investors or families.

Ondarreta: the beach that gives it its name is calmer and less crowded than La Concha with a profile that‘s more informal and youthful. It is sought by investors and families. Antiguo: it is one of the most modern areas of the city and the place chosen by young couples and families. Igeldo: located in the mountainous massif of the same name, is the least accessible area of the city, with private detached houses with stunning views of the bay. In here buyers look for their main residence and they are mostly families with older children. Old town: the most central and historic district of the city has a great offer of leisure and cultural activities. Couples, singles and foreigners meet the demand. Gros: it is the most alternative, cosmopolitan and dynamic area from the city. With the Zurriola beach as the highlight, couples, singles and foreigners opt for this neighbourhood as it has become an important commercial area. Aiete: far away from the centre, it is a quiet residential area for families. In fact, as it has a residential character, Aiete is highly sought by young families.

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such registers a growing demand for high quality housing. The property market that Engel & Völkers works in has registered a change of trend with respect to the past that is summed up in the exodus from the outskirts to the city centre. If a few years ago families decided to homes now they want to sell those homes because they are getting older and seek well located houses near the centre in search of a greater comfort.

Amara: far from the centre, it is a more affordable area in price and one of the newest neighbourhoods in the city. Its residents are mostly families and students. Buy to let One in three people who buy a home in San Sebastián do so as an investment. Nearly 7% of the buyers are foreigners, mostly American and British. The first ones demand a detached house, with large spaces, away from the centre, but with good transport connections, while the British look for spacious downtown flats to spend their holidays in and rent it out during summer. Known as one of the most expensive cities in Spain, the Prices per square metre in San Sebastián (€)

Min.

Max.

Medium*

Area Romántica

5.000 11.900

8.450

Miraconcha

7.500 10.500

9.000

Ondarreta

4.500

7.000

5.750

Antiguo

4.000

6.500

5.250

Igeldo

3.500

6.000

4.750

Casco Histórico

5.000

6.500

5.750

Gros

2.000

5.800

3.900

Aiete

3.500

5.500

4.500

Amara

2.000

4.500

3.250

Engel & Völkers‘ customers look for upper floor flats of more than 150 sqm, in the centre, facing south, with unobstructed views of a park or plaza. It is also sought by investors who buy to receive profit via rental at the same time as their investment appreciates in value. 85% of buyers purchase the property without resorting to financing. The most requested areas - with high maximum prices due to the existence of small ‚oasis streets‘ in great demand which do not greatly affect the average- are the following: Centro: much sought after by families with adolescents and elderly people who are looking for comfort and by investors looking for small homes to let. Lovaina: central area sought by families with children small that value the proximity of schools in the area. Aranzábal: good quality flats of about 30 years with garage, very close to the centre and the Florida Park together with Louvain, this area is preferred by families with children of school age. Ciudad Jardín: residential area requested by the high class, businessmen and public positions. Armentia: congregates an area of single-family homes within the city much in demand by the high class society, businessmen, public officials and independent professionals. Prices per square metre in Vitoria (€)

Min.

Max. Medium*

2.000

4.000

2.900

Lovaina - Aranzabal 2.300

5.000

2.950

Ciudad Jardín

2.800

4.500

3.300

Armentia

1.975

3.100

2.600

* Corresponds to the average price of homes offered in the area.

average price of housing reached 5,540 euros / sqm in 2017, 10.8% more than in 2016. The property most desired is the one between 100 and 150 sqm, whose average price ranges between 300,000 and 500,000 euros. Vitoria, in the centre of the province of Álava, is the capital Administrative Department of the Basque Country and as

76 |

Centro

* Corresponds to the average price of homes offered in the area.


Activity area of Aragón Cinco Villas

Huesca Ribera Alta del Ebro Los Monegros Zaragoza Zaragoza Valdejalón Ribera Baja del Ebro

Campo de Cariñena

Aragón Zaragoza Zaragoza enjoys a privileged enclave that the locates as the best logistic and communications node for all the north and east of the peninsula. The demand for housing in the city focuses on low prices. 76% of the purchases that are made are below 150,000 euros and a 21% below the 300,000 euros, the residual being sale of properties of more than 300,000 euros. Most of the demand is in the zones within the centre where the most requested are the 90 sqm flats. With an increase of 30% in the purchases, the average price of housing was placed in the 1.352 euros / sqm in 2017. Looking ahead to this year forecasts point to an increase in the average price of sales and an increase by an average of around 300,000 euros. Rental Prices for rentals in Zaragoza have been maintained in 2017 at a level similar to last year, between the 450500 euros for a house of 70 to 90 sqm. The number of rentals made by Engel & Völkers has tripled compared

to 2016 because the demand far exceeds available offer and forecast Looking ahead to 2018, demand continues to grow. The flats that are most in demand are those of two or three bedrooms in the city centre and areas near the university. The students, who are looking for a large flat to share, are the ones that concentrate most of the rental requests, together with an important demand from older people who want to get closer to the centre, are divorced or foreign professionals.

Prices per square metre in Zaragoza (€)

Min.

Max.

Medium*

Centro

1.620

3.840

2.804

Casco Antiguo

3.600

4.105

3.800

Ruiseñores Universidad / Romareda Casablanca

1.625

2.500

1.950

2.123

3.600

2.852

2.350

3.000

2.616

Alrededores

1.000

2.700

1.725

* Corresponds to the average price of homes offered in the area.

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Canary Islands Activity area of Canary Islands

Atlantic Ocean

Lanzarote

La Palma Tenerife

Fuerteventura

Puerto de la Cruz La Gomera

Costa Adeje Gran Canaria

El Hierro

Tenerife Puerto de la Cruz Tourism is the basis of the economy of Puerto de la Cruz, a municipality located north of the island of Tenerife that stands out for the constant warm climate and good relationship price quality. The average prices of the properties reach 1,500 euros / sqm in the case of flats and 1,100 euros / sqm for houses, a price that has not changed with respect to the previous year. 60% of the demand for housing corresponds to flats while the rest are chalets and houses single-family.

Puerto de la Cruz and La Paz-Botรกnico are the most demanded by their varied offer of services, while Buenavista and El Sauzal, with an average price in the region of around 2,000 euros / sqm, as was the case in 2017. 85% of buyers are pensioners and, in great part, foreigners. Only 10% of those who seek a house are Spanish. Most of them pay cash for the property and only 10% resort to a loan or mortgage.

78 |


Prices per square metre in Puerto de la Cruz (€)

Min.

Max.

Medium*

Buenavista

780

1.800

1.290

Icod

795

1.957

1.313

Los Realejos

893

2.300

1.639

La Orotava

775

2.038

1.395

Puerto de la Cruz

833

2.373

1.520

Santa Úrsula

938

2.321

1.742

La Matanza

758

2.542

1.229

El Sauzal

1.312

2.736

1.983

Tacoronte

1.038

2.148

1.621

* Corresponds to the average price of homes offered in the area.

Costa Adeje Located in the southern area of the island of Tenerife, it has a extension of more than 26 kilometres of coastline. the price of homes sold by Engel & Völkers stood in 2017 in a range between 2,000 and 6,000 euros / sqm, compared to between 1,800 and 4,000 euros / sqm that was registered in the previous year. The areas and homes most in demand are the flats and luxury villas in Costa Adeje, La Caleta and in Golf Costa Adeje.

The buyers, mainly the Germans, Austrians and Swiss, look for flats with a minimum of two bedrooms, two bathrooms and terrace with sea views, whose prices range between 300,000 and the 600,000 euros. They also have great demand the villas with private pool, garden, views to the sea or on the beachfront. The Belgians demand modern and minimalist constructions, while that Spaniards and Italians are looking for renovation homes with low prices in order to sell for profit. Since 2016, there has been an increase in the number of investors looking for homes to rent out to tourists, despite the Canary Islands law that prohibits holiday rental in tourist areas. Prices per square metre in Costa Adeje (€)

Min.

Max.

Medium*

Costa Adeje

2.500

5.000

3.000

Golf Costa Adeje

4.000

6.000

5.000

La Caleta

2.500

5.000

3.200

Roque del Conde

2.000

3.000

2.500

El Madroñal

2.000

3.000

2.500

* Corresponds to the average price of homes offered in the area.

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Balearic Islands Activity area of the Balearic Islands Menorca

Mallorca Norte

Oeste Palma Alrededores & Son Vida

Noreste

Central Suroeste Palma

Ibiza

Sur

Sureste

Mediterranean Sea

Formentera

The property market of the Balearic Islands constitutes a strong claim for investors looking for both a First residence as a holiday home. With a strong presence of foreign buyers, led by the Germans, British and Scandinavians, throughout 2017 highlights the return of Spanish investors. One year in which has been noted an increase in purchasing power of customers, with a greater spending potential. Engel & Völkers has 20 locations in the islands from which it controls 33% of property purchases carried out by foreigners on the islands. After the beaten record in 2016, in 2017 it has increased the volume of sales by 35%, reaching 634 millions of euros.

Mallorca Mallorca is the main focus of investment, with the capital of the island at the head. Palma is becoming in a European metropolis and probably one of the best connected Mediterranean cities in Europe. The challenge is to find in Palma quality flats and pied

80 |

à terre to cover the demand, something that is also the case in Menorca, in the cities of Ciudadela and Mahón, as well as in the city of Ibiza and its old town, called Dalt Vila.


Palma de Mallorca The market in this area will maintain its dynamism in 2018 with new price increases. In 2017, the average price of houses with views and terrace in Casco Antiguo de la Ciudad increased to 3.8 million euros from 3.5 million registered in 2016, ranking as the most expensive location. Between Portixol and Ciudad Jardín, prices of houses with views of the sea rose to 2.5 million euros on average. There is great potential of investment in the area of Playa de Palma / El Arenal, where the average price is still below one million of euros. With regards to flats, the most sought-after are those that have sea views and are located between Portixol and Ciudad Jardín, where average prices stand at 800,000 euros. There is great potential for investment in the Playa de Palma / El Arenal area, where the average price of the apartments is still below 450,000 euros

of nearby towns, prices are expected to remain stable, with two million euros the initial average price for fincas and 350,000 euros for the flats.

Southwest Mallorca The great demand for villas in this area has raised the prices in the last two years, an increase that will continue in 2018. The most expensive areas are Puerto de Andratx and Bendinat, where the locations on the seafront They are the most sought after. In Puerto de Andratx the price average of the houses stood at 4.5 million in 2017 euros. The most sought-after flats are in Portals / Bendinat that, with an average price of 800,000 euros in 2017, they maintain the upward trend.

West Mallorca

Palma Surroundings & Son Vida In 2017, the average price of a villa in Son Vida increased up to 4.5 million euros from the four million of the previous year, while the price of flats remained stable at 800,000 euros. The demand in the area, especially new designer villas with views to the golf course or the sea, it is still high, which suggests a new price increase this year.

Prices will remain unchanged in 2018. Most expensive locations are based in Deià, Valldemossa and Puerto de Sòller. In the Deià region the prices are maintained at an average of 3.5 million euros. Highlights are Sóller, with an average price between one million and 1.5 million euros; and the still little known coastal area around of Banyalbufar and Estellencs, where you can find fincas for less than one million euros.

It is worth noting the opportunity offered by Arabella Park to buy houses near Son Vida with an average asking price of 1.5 million euros. In this area there is also a great demand for flats, as prices increased by 50,000 euros last year, an increase that will maintain in 2018. In the areas

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North Mallorca The prices of houses, which have been stable in recent years, present a great variety in this area. In the area of Fomentor, the offer is limited so it is expected that the prices exceed this year 4.5 million euros registered in 2017. They will also go up for the premium villas with sea views of Puerto Pollença and Alcúdia which are between 2.5 and 3.5 million euros, as in the areas near the towns of Campanet, Búger y Muro, whose price was placed last year between one and 1.5 million euros. The market of the flats is centred here in the coastal areas. One of the most quoted is the Port of Pollença, with an average price higher than 400,000 euros. In rural areas, prices remain stable below 350,000 euros.

valley. All the inland villages, around the traditional winegrowing area offer a better quality price with a less than an average amount of 1.3 million euros.

As regards to the demand for flats, Binissalem and Consell have an average price higher than 350,000 euros, while in Algaida and Son Ferriol they meet for less than 260,000 euros, just like in Palmanyola. Southeast Mallorca It is foreseeable that the price stability that has characterised this area will break up this year. Around Cala Murada, and in the immediate south east: in Sa Rápita and in Colonia San Jordi, you can find houses for less than two million euros, while in Campos and Porreres there are rural fincas with land for an average price of 1.35 million euros. Northeast Mallorca The premium areas for the villas are on Colònia St. Pere and in the vicnity, near Artà. In this location the prices stood at 1.7 million euros in 2017 and expects an increase in 2018. For its part, in Port Verd and Cala Millor prices will remain stable between 1.6 and 1.7 million euros. The areas to consider are Costa de los Pinos, Capdepera and Canyamel, where the average price it stands at 1.5 million euros. This is one of the few areas of the island where you can still buy flats with sea views for less than 400,000 euros. Central Mallorca The prices of the houses have remained stable throughout the area and are expected to increase this year in the most attractive, like Santa Maria and Alaró. The cost of houses will also rise in Bunyola and Algaida, with good access to Palma; and Montuïri, with panoramic views of the

82 |

Although there is very little demand for flats within this locality, a change in trend is expected this year since this area offers good value for money for investors who are seeking housing near the coast and Palma Airport.


South Mallorca The south of the island has registered a constant increase in prices since 2016 in all categories of property. Regarding the villas with sea views, the most desirable are in Son Verí Nou, Cala Blava and Puig den Ros, where the average price is 1.9 million euros. Along the coast, the average price of the villas goes down to 1.45 million in the areas of Sa Torre, Bahía Azul and Bahía Grande. For its part, the flats on the market in this area will maintain their leading role in 2018, with Son Verí Nou and Cala Blava as the most sought-after areas with prices that reach up to 450,000 euros. The area that spans from Sa Torre to Bahía Azul / Bahía Grande to Llucmajor is ideal for investors, since prices are less than 280,000 euros.

in 2017. The holiday season focuses on the four months of summer (June-September) giving the owners enough time to enjoy their property. The weekly rental prices range between 2,500 and 6,000 euros.

Ibiza The housing market in Ibiza shows no signs of slowing down despite the upward trend in which it has been stuck in for years. The new rules of urbanism are still more restrictive becoming in an additional factor of regulation. Derived from this situation has emerged a new market segment that‘s fast developing with the creation of high standing urbanisations that offer multiple services. This is something that has not been found easily in Ibiza until very recently.

Menorca The tight restrictions of the local government for new construction together with a reduced stock of properties have pushed prices up by 15% in the past two years in Menorca, mainly in properties that are exceptionally in the best locations. The most sought after homes are the villas near the sea, although since 2016 there has been a growing demand for houses townhouses in the historic centres of Mahón and Ciutadella. The owners of these properties are mainly Spanish, French and British. There is also a strong demand for holiday rentals, which has allowed Engel & Völkers to grow in this segment by 51%

A niche market has allowed Engel & Völkers foresee good performance for this year after repeating record results in 2017, a year in which the property market served buyers from 15 different nationalities. The highest prices in the island are in the capital and its surroundings. In the most premium areas, the price of the villas that are 350 square metres starts from 4.3 million euros, while for the flats of 100 square metres, the price starts from one million euros. In middle areas, the prices for the villas go down to a range between 1.3-1.8 million euros and two-bedroom flats an be found for 450,000 euros.

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New builds Madrid

The increase in the demand from the international client in the most prime areas of Madrid has driven the average prices of new builds in these locations up to historical maximum levels. The shortage of supply for new properties for sale in the capital, mainly in the districts of Centro, Salamanca and Retiro, does not satisfy this growing demand and has caused a rise in overall prices. In 2017, the average cost of new construction in Madrid has been based within a range between 6,000 and 15,000 euros / sqm in the prime areas, which goes down to a banding of between 4,000 and 6,000 euros / sqm in less premium areas. The newly constructed buildings are located in developing areas with the existence of consolidated urban land while the new constructions in the capital focus on renovated buildings, which are in high demand in Salamanca, Retiro, Chamberí and the entire city centre. The international client looks for prime areas like Salamanca, Retiro or Chamartín where

the price is within one million euros for flats of 150 sqm, while the national customer seeks the rest of the locations for homes with an average price of between 300,000 the 800,000 euros for flats that are between 80 and 140 sqm. For its part, the investor seeks property in Madrid capital for less than one million euros. The capital city offers a high profitability, especially in the centre of the city, where there is a greater demand for holiday lettings while being the best location for long-term rentals. In terms of new build properties for sale in Madrid, Engel & Völkers has grown 80% in 2017 compared to the previous year. In 2018, an increase in prices is expected to be between 12% and 30% depending on the area from least popular to the most prime. Engel & Völkers has 672 new build projects in Madrid, out of which 239 are in the capital and the rest are situated in the surroundings. 70% of the offers are marketed exclusively and the remaining 30% are co-exclusive.

New build properties‘ prices per square metre for sale in areas of Madrid (€)

84 |

District

Promotion

Minimal price

Maximal price

Pozuelo Norte

Angelita 1, 3 y 5 A

1.508

1.856

Chamberí - Ríos Rosas

Plaza de San Juan de la Cruz, 4

7.803

12.273

Hortaleza - Las Palomas

Francisco José Arroyo 29

2.652

3.076

Pinilla de Valle

Las Eras 19

1.261

1.266


Barcelona 35% of those who buy a new home in Barcelona are foreigners; they are mostly French, Swiss, Belgians, Germans, Italians, Turks, Arabs, Swedish, South Americans (Colombians and Argentinians) and, in lesser extent, Americans and Asians. Engel & Völkers is marketing 37 new construction projects in Barcelona, representing a total of 548 units for sale, incorporating an average of two properties for sale a month. In most of them, lower floor and ground floor flats are the cheapest ones. The prices rise further from second floor and higher with the most expensive property being on the top floor. The average sale price in 2017 has been placed within the 530,000 euros banding for a property of around 100 sqm. 138 units have been sold adding a total brokerage value of 73,140,000 euros. Flats are sold more easily than houses and, within these, penthouses or top floor flats are the star products. There is an increase of new build properties in the centre of the city, mainly in the districts of Ciutat Vella, Eixample, Gràcia and the Zona Alta, however, the highlights are the

increase in properties constructed in places where there is more land to build on, like in Baix Llobregat, Vallès and Badalona. In 2017, Engel & Völkers multiplied its business by four in the property development division in Barcelona in 2017 compared to the previous year. Looking ahead to 2018 the company expects an increase of 30% in its turnover.

Prices per square metre for new build homes in Barcelona (€)

Min.

Max.

Medium*

Eixample Dreta

6.250 10.500

7.000

Diagonal Mar

5.500 11.000

7.200

Front Marítim

4.000 10.000

6.900

Sant Gervasi

5.300 11.000

7.500

Gràcia

5.500

8.000

6.000

Les Corts

5.750

6.800

6.300

Gòtic

5.800

7.200

6.200

Significant new build properties marketed by Engel & Völkers in Barcelona (€ / sqm)

Residential proyect

Area

District

Average price

Bertrán

Sant Gervasi

Putxet

6.700

Rep. Argentina

Sant Gervasi

Putxet

5.350

Reina Victoria

Sant Gervasi

Turó Parc

9.000

Saüc

Sarrià – Sant Gervasi

Sarrià

6.150

Can Segalar

Les Corts

Les Corts

8.000

Còrsega

Eixample

Eixample Dreta

6.000

Nàpols

Eixample

Eixample Esquerra

7.500

Enric Granados

Eixample

Eixample Esquerra

9.370

Via Laietana

Ciutat Vella

Born

7.900

Verntallat

Gràcia

Vila de Gràcia

7.900

Mallorca

Gracia

Camp de l’Arpa del Clot

6.100

Llull

Sant Martí

Diagonal Mar

7.700

Mar Egea

Badalona

Badalona

3.200

Pierrot

Sant Cugat del Valles

Sant Cugat del Valles

3.080

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Sant Just In the municipality of the Baix Llobregat region and part of the metropolitan area of Barcelona, Engel & Völkers is selling six new construction projects directly from the builder. The average prices are between 3,500 and 4,500 euros / sqm. By zones, the neighbourhood of Finestrelles is the one that has a higher average price, 5,700 euros / sqm, where 70% of the buyers are Spanish families. Prices per square metre for new build homes in Sant Just (€)

Min.

Max.

Medium*

Finestrelles

5.000

7.000

5.700

Sant Just

3.500

4.700

4.000

Sant Feliu

3.000

3.700

3.300

Sant Joan Despí

3.200

3.600

3.500

Sitges The demand for new constructions in Sitges focuses just as much on main residences as on second residences. Engel & Völkers is marketing five new builds, with average prices of around 3,900 euros / sqm. The properties for sale are exclusively marketed and are not shared with any other agency or seller. They consist of two and three bedroom off-plan flats to be delivered late 2018 or early 2019 near the centre of town with energy certification of A.

Prices per square metre for new build homes in Sitges (€)

Mín.

Máx.

Medium*

Plana Est. La Bobila 2.520

4.600

3.200

Centro

5.200

4.300

3.200

The profile of the buyer is divided equally between foreigners and nationals who mainly seek flats with three bedrooms. Given the shortage of land in some locations, the demand has transferred from Vinyent and the first beach line to the new area of La Plana Est, which allowed 2017 to be the year of new construction developments in new areas as part of an extension of the municipality. Significant new construction developments marketed by Engel & Völkers (€ / sqm)

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Residential proyect

Area

Zone

Average price

Ca la Blanca. Adosados

Sitges

PinsBens

3.100

La LLave de Oro

Sitges

Plana Est

2.900

Malvasia

Sitges

La Bobila

2.520


Pals-Begur Located in the Baix EmpordĂ region, Pals and Begur is one of the most sought after destinations for buyers of new build homes. This is because of the great climate, vast golf courses, small coves and its fishing villages that are full of character and charm. All these in a well connected area thanks to its proximity to the airports of Girona and Barcelona. Engel & VĂślkers is exclusively marketing Son Rich Residences, an urbanisation in Begur that consists of 55 homes with garden, private garage and pool, in which the average price is at 4,100 euros / sqm. Families with medium high purchasing power make up the demand in the area and the nationalities of buyers vary from Spanish to Swiss, and even Arabs from UAE. The most desirable types of properties are the villas that are from 250 sqm to 400 sqm and the flats that are from 50 sqm to 90 sqm. Forecasts for this year are positive since the demand is maintained and has even grown in the inner region, where up to now it had remained stagnant.

Prices of new build homes per square metre in Pals-Begur (â‚Ź)

Begur - Urb. Sa Roda

Min.

Max. Medium*

3.600

4.700

4.100

Valencia 2017 has been the year of the resurgence for new build properties in Valencia. If at the end of 2016 there were barely 25 advertised units for sale and the rest were marketed prior to the financial crisis, today there are 71 new build offers new in the city, 10% of which have already started with construction. These homes have two or three bedrooms with maximum prices in the prime area of 3,500 euros / sqm and 800 euros / sqm in the cheapest locations. The Average price can be set at 2,000 euros / sqm. The market is eager for new build homes and clear proof of this is that the promotions that come out for sale in consolidated areas are reserved within a few weeks and are marketed quickly despite the high prices. On the contrary, the offer is concentrated in the areas of the city that are expanding rapidly expansion but not consolidated with very tight prices. Families, together with investors who use their purchased property for letting purposes, are the main owners. 75% of the buyers are Spanish and half of them are Valencians, who seek a home between 90 sqm and the 120 sqm.

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Significant new build properties for sale marketed by Engel & Völkers in Valencia (€ / sqm)

District Jesús

Nº of properties for sale 1

Nº of units

Average price

3

1.358

Benimaclet

1

16

1.880

Algirós

1

18

802

Ciutat Vella

2

67

2.656

Pla del Real

1

80

3.455

Extramurs

6

87

2.504

L'Olivereta

5

98

1.525

La Saïdia

3

126

1.921

L'Eixample

5

126

2.963

Rascanya

2

156

1.992

Patraix

10

353

1.637

Camins al Grao

12

421

2.509

Benicalap

8

648

1.774

Quatre Carreres

14

953

1.819

Alfaz del Pi Tranquility and a medium-high standard of living are all the factors that characterise this territory. The beach of El Albir is a residential area, quiet but at the same time it enjoys a good nightlife atmosphere. The demand centres around the holiday homes and is the area with the most properties for sale with average prices that reach up to 2,450 euros / sqm. On the other hand, Alfaz del Pi and La Nucia are areas that are for long-term residential living with Norwegian and German buyers, while Polop, which is a new area, is chosen by the Spaniards. Engel & Völkers is selling six new property offers, which are also shared with its others partners, to which 14 more will be added throughout this year. 80% of the buyers are foreigners from the United Kingdom, Germany, Norway and the Netherlands, while only 20% of the purchases are carried out by Spaniards. The forecast points to an increase in demand for housing in the residential area and derived from other places like Benidorm. In fact, this area is expected to experience a rising demand and a contained offer for the next two years.

88 |

Prices of new build homes per square metre in Alfaz del Pi (€)

Min. Playa El Albir

Max.

Medium*

2.000 3.500

2.450

Alfaz del Pi / La Nucia 1.500 2.800

1.850

Polop

1.450

1.300 1.800


Significant new construction developments marketed by Engel & Völkers in Alfaz del Pi (€ / sqm)

Residentila proyect

District

Area

Average price

Sion Sol Inter.

Polop La Marina

Polop

1.645

Larcosta

Polop La Marina

Polop

1.923

Dimalbir

Albir

Albir

2.200

Europasol

Albir

Albir

1.600

Llobarro

Albir

Albir

2.250

Saga S.L.

Albir

Albir

2.820

La Coruña

The shortage of new build properties in La Coruña due to the lack of space has boosted the property renovation market and the new property constructions around the centre of the city have started. There has been remarkable growth in areas such as Santa Cruz, in Oleiros. Engel & Völkers has a new build project in La Coruña in the area of Náutica-Riazor. This is a construction of 30 flats. At the beginning of this year construction started with a new project on the outskirts of the Herculine capital, „Jardines de Santa Cruz“ in Oleiros. It is a 36-story development overlooking the beach in a price range from 200,000 to 400,000 euros.

The average price of new builds in the city is around 3,078 euros / sqm. The profile of the buyer is that of a young couple or a local investor. In fact, only 5% of those who buy a newly built home are foreigners. The most sought after types of properties are the upper floor flats with terrace and good views, three bedrooms, at around 120 sqm with garage and storage room. Property price per square metre marketed by Engel & Völkers in Coruña (€)

Náutica/Riazor

Min.

Max.

Medium*

2.546

4.047

3.078

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Andorra Context of the country With 468 square kilometres and 77,000 inhabitants, Andorra is a country where more than 100 different nationalities live together. With a GDP of 2,584 million euros in 2016, which means an average annual growth of 3.2% since 2000, and total imports of 1,226 million euros, the Andorran economy is

supported by its services sector. Within this activity, which represents around 80% of GDP of the country, tourism stands out the most. More than eight million people visit Andorra every year. These tourists are attracted by Andorra‘s winter sports and shopping centres among others.

A service-oriented economy

0,5% 4,5%

5,3%

9,7 %

5,2%

9%

12,5% 20,1 %

5,8% 14,8%

4,1 %

1,5% 7 %

Taxes

Professional activity

Property

Public administration

Finance

Building

Communication

Industry

Hotels / Restaurants

Farming

Transports / Stocks

Others

Commerce

The Principality is in the process of modernising its economy and has opened up to foreign investment. The fiscal and administrative reforms undertaken since 2012 have brought about a change for the country, which does not depend so much on tourism or the banking sector and is diversifying its resources towards other sectors. The new fiscal framework has attracted investments that improve the economic indicators and help the country make a quick exit out of the crisis. This is a starting process that has propitiated the arrival of 2,000 foreign companies to the country since 2012. PIB de Andorra (â‚Ź)

2.600 M

+1,90% 2.584

+0,30% +2,18%

2.535

2.525

2.500 M

2.471

90 |

1 6 0 2

1 5 0 2

1 4 0 2

2

0

1 3

2.400 M

The increase in foreign investment, which in 2016 accounted for 3.8% of the country‘s GDP, has managed to compensate the possible loss of banking clients. Investors from Spain stand out, which represent about 40% of the total, while those in the other neighbouring country, France, amount to 20.6%. The Andorran economy started picking up in 2017 and it will also be just as active in 2018 due to the new Financial Information Exchange Law being enforced. This legislation has directly affected those who they had money and assets in the Principality without having declared it in their countries of origin, so this has made it possible to open up Andorra to the world. With the start-up of this law the country puts an end to banking confidentiality, which is key to its economy that has been suffering for decades.


Property market and its trends Residential market According to the College of Real Estate Agents and Managers of Andorra (Agia), the property sector is experiencing a moderate growth phase, recovering gradually but not yet reaching the figures prior to the financial crisis. The data from the Andorran Social Security Fund show that since 2015 the number of companies that were involved in property sales and rentals in the country has increased by 31.14%. During the first six months, 12,159 companies have been registered while during the same period in 2016 and 2015, there were 10,449 and 9,272 registered companies, respectively. The territory 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 them, a high level of quality of life exists thanks to high citizen security, a commercial sector dynamic and diverse,

Activity area of Andorra

Francia

Ordino Canillo

La Massana

Encamp

Andorra la Vella Escaldes-Engordany

St. Julià de Lòria España

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competitive taxation system, a solid and international financial system, beautiful landscapes and the best ski resorts in the Pyrenees, such as Grandvalira and Vallnord. Andorra also boasts of Naturlandia (its adventure park), the theme park of the Pyrenees, and Caldea, the largest thermal spa in southern Europe. The most popular property in Andorra has around 180 square metres of living space, three bedrooms, two bathrooms, parking and terrace with views and its average price is based around 550,000 euros.

The demand varies a lot depending on the area: Canillo: the most extensive parish in the Principality and considered as the top destination of Andorra. It is a modern town that mainly focuses on mountain tourism, thus offering total tranquility. Within its territory, there is Grandvalira, the largest ski resort in the Pyrenees. The most sought after properties in this area are those that are destined to be used as second homes. Encamp: being in the heart of the Principality and just 10 kilometres from the capital, this is the area chosen as a first residence with average prices around the 3,650 euros / sqm. Ordino: boasts landscapes that are of great value. The most sought properties are main residences for the middle class and a second residence for high class people with high purchasing power.

La Massana: this is an active territory mainly in winter because of its Vallnord ski resort. It is a highly sought after area by the middle class and by expatriates who look for their main residence here. Andorra la Vella: this is the capital of the country, the most populated and the smallest parish of the Principality. It comprises of a financial and commercial centre with very diverse homes. In fact, you can find properties with an average price of 1,500 euros / sqm to some that can even reach as high as 8,000 euros / sqm, together with high standing new build properties. St. Julià de Lòria: this is a town with a modern atmosphere, where the villas are very popular among the medium-high class as well as the expatriates. Escaldes-Engordany: is home to the main hot springs of the country. It has highly diverse regions, ranging from 1,500 euros / sqm to 8,000 euros / sqm plus several high standing new build properties in the area. Buyer profile 70% of the home buyers in Andorra are made up of foreigners (European) and the remaining 30% are the locals, i.e. Andorran residents. The latter seek flats to buy, while among the international clients the demand from British to buy houses, rural properties and chalets; buy to let flats located between the Spanish and French border, with good profitability. In fact, in 2017, an increase in the number of buy to lets was recorded.

Prices per square metre for rent and sale in Andorra (€)

For rent

92 |

For sale

Min.

Max.

Medium*

Min.

Max.

Medium*

Canillo

6

15

10,5

1.800

4.800

3.300

Encamp

6

15

10,5

1.800

5.500

3.650

Ordino

6

17,5

11,75

2.200

5.500

3.850

La Massana

6

17,5

11,75

2.000

5.500

3.750

Andorra la Vella

6

20

13

2.200

8.000

5.100

St. Julià de Lòria

6

16

11

1.800

4.400

3.100

Escaldes - Engordany

6

20

13

2.000

8.000

5.000


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Credits

Editor Engel & Völkers Spain S.L. Avenida Diagonal, 640 6ª planta E-08017 Barcelona España Drafting Stakeholders PR Layout Mediabureau Coordination Sarah Brasseur Silke Dittrich

All the information has been extensively researched. No responsibility is taken for the integrity and accuracy of the content. The reproduction of content protected by copyright is only allowed with consent from Engel & Völkers Spain S.L., provided that the relevant reference is made to the source.


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