With all-time record numbers of tourists visiting Spain, seeing 7.64 million foreign visitors in August alone, a 9.4% increase over the same month in 2010, it seems that the third quarter of 2011 has been a bumper period for Spain, with Spanish property prices rising in certain locations.
Statistics from Kyero.com, Spain's largest English language property portal, for Q3 2011 show that the national average asking price for property in Spain increased to €266,100 in September compared to €263,000 back in June this year, suggesting a shortage of quality properties in the most popular regions.
Of course, as prices rise and tourism booms with some Costa hotels enjoying 100% hotel occupancy over the summer months, potential buyers will be on the hunt for attractive opportunities.
In fact, property professionals across the nation have already witnessed an increase in inquiries and inspection trips, with overseas mortgage specialist Conti recording a 7% rise in enquiries about Spanish property in August this year.
Marc Pritchard, sales and marketing director of Spanish developer, Taylor Wimpey España, comments:
"The price rises in certain parts of Spain is an encouraging sign for investors with locations such as the Costa Blanca, Costa Calida, Alicante and Murcia experiencing marked price increases.
"Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors."
Indeed, Alicante is one such region that has seen average property prices rise steadily since the end of last year with average asking prices of €220,000 seen in December 2010 gradually rising to €231,000 last month according to the latest figures from Kyero.com in Q3 2011.
With prices in Alicante province below the national average it is hardly surprising that it experienced the biggest number of sales to foreign buyers between April and June 2011, however of the 22% increase in Spanish property sales in Q2 2011, a total of 90,746 properties sold according to the Spanish government, Malaga hit the top spot for sales to foreigners with 1,110 sales taking place in the second quarter of this year.
Interestingly, despite the price of property in Malaga standing at €299,500 (September 2011), above the national average, buyers seem to have taken a shine to this Costa del Sol region thanks to its important cultural infrastructure and rich artistic heritage.
Malaga has even been nominated as a candidate for the 2016 European Capital of Culture, destined to boost future tourist numbers as well as property sales.
Meanwhile, further statistics from Kyero's Spanish House Price Index (Q3 2011) highlight that the Balearic Island of Mallorca has the third highest average asking price in Spain at €416,300.
Perhaps the golf courses, infrastructural developments, glorious beaches, year round lively atmosphere, celebrity residents and world recognised events such as the Global Ocean Race 2011-12 account for the high asking price compared to other Spanish provinces.
Indeed the Spanish government's 4% reduction in IVA (the equivalent of VAT) on new stock properties until 31st December 2011 offering a potential saving of €8,000 on a €200,000 home combined with Taylor Wimpey España's additional 4% contribution is certainly a big factor at play in attracting more buyers to the country.
And, whilst property on Mallorca is more expensive than many of its counterparts, savings such us this can make a real difference, offering a quality property in a popular location at a discounted price.
Following the success of Cala Magrana I and II, Taylor Wimpey España is now launching phase III comprising 20 stunning apartments on Mallorca situated close to Cala Anguila beach, a selection of golf courses and the marina of Porto Cristo.
Costing from €220,000 + VAT, this residential development consists of 2 bedroom apartments surrounding a communal garden with a swimming pool. Ground floor apartments have a spacious terrace with a garden for private use while Top floor apartments benefit from a roof terrace also for private use.
