Spanish property sales have soared by a third. – Katar Investments

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Spanish property sales have soared by a third.

Property sales to Spanish buyers were up by 86 per cent year on year a clear sign that the Spanish property recovery is well underway.

International buyers, however continue to dominate high end sales. The market reports reveal that 17 per cent of prime market buyers in Barcelona (purchasing property above 950.000 Euros) were to national clients compared to 11 per cent the previous year, the majority of whom were purchasing primary residences.

The increased market activity by local buyers was the standout trend in 2015, Spanish buyers have been active predominantly at mid end of the market, attracted by property prices at an 8-year low, a recovering economy and increased lending from Spanish banks. For several years the market has been dominated by international buyers and whilst foreign investors still account for the majority of sales, the number of local buyers is clearly on the rise.

Sales to the British were also up by 50 per cent, UK buyers accounted for more than two thirds of home sales, primarily due to the strong Pound against the Euro during 2015.

There was a rise in Dutch and US buyers during 2015. The number of Russian buyers has dropped substantially and are being replaced by buyers from the Gulf States.

Sales to the Spanish were also particularly strong in Valencia where transactions to local buyers more than doubled. There were also significant increases in Maresme, the coastal area to the North of Barcelona and the Costa Brava, where Spanish buyers accounted for 37 per cent and 29 per cent of home purchases respectively.

Furthermore Spanish home sales rose by over 15 per cent in February 2016, according to official figures.