There has been an increase in the purchase and sale of houses on the edge of the beach, a situation that has increased their prices exponentially. Some of the areas that show clear signs of increase are the Balearic and Canary Islands, the Costa del Sol, the north of Alicante and, of course, the Maresme.
Each day increases more the percentage of beaches that register increases of prices superior to 10% (as far as the adjacent houses) during the last year. These areas cover the region of Mallorca, Ibiza, Lanzarote, Fuerteventura and some municipalities of Huelva, Alicante and Malaga.
The main reason for the price increase is due to foreign demand, which at the moment, is the first buyer of homes on Spanish coasts.
The expert says that the areas where there is more evidence of foreigners' interest in buying homes are Costa del Sol, Costa Blanca and the surrounding islands. However, Stucklin also states that there are indicators that show that the level of construction in some areas is no longer sustainable.
British, Belgian and Nordic: the main investors
During 2017, international investment comprised 13.1% of total homes sold in Spain, which translates into more than 61 thousand houses compared to just over 53 thousand that were sold during 2016, according to the College of Registrars . In addition, it is important to highlight that almost one third of all houses sold in the Balearic and Canary Islands during 2017 fell into foreign hands.
On the other hand, Samuel Population, director of Residential and Land of CBRE, affirms that the British, the Nordic and the Belgians with the main buyers of the buildings and, although at first they have focused on the purchase of second hand, in the recent months have been interested in the acquisition of new works.
The rental of housing is the tactic of the Spanish.
The price increase is not due solely to the foreign purchase of real estate. Although it is true that national demand has not yet recovered due to the precariousness of jobs and salaries, acquisitions for rental have grown.
The Spaniards who take this alternative do so because of the great profitability it supposes. Currently, renting a house on the beach has gone from 2.38% in 2017 to 2.45% during 2018. To understand these statistics, we must bear in mind that the average rent is around 642 euros per week.
In addition, the weekly price of a beachfront rental is between 5% and 10% above during the summer. In conclusion, without a doubt, the coastal area of Spain is having quite remarkable economic growth in the last 3 years. If this continues, it is likely that the projection for the next five years will translate into an increase in population density.