FOR MEMBERS

Property in Spain: A weekly roundup of the latest news and updates

Property in Spain: A weekly roundup of the latest news and updates
Property prices are collapsing on Spain's Mar Menor. Photo: ELG21 / Pixabay
From falling rental prices across the country to property prices collapsing on Murcia's Mar Menor and Brexit causing Brits to buy fewer properties than ever here in Spain, here is the latest round-up of property news.

The average rental price of housing in Spain fell in August

The average rental price in Spain fell by 6.7 percent in August. It now stands at 10.7 per square metre. According to the latest price report published by Idealista real estate portal, the Community of Madrid remained the most expensive place to rent in Spain with an average of 13.8 euros per square metre.

Rents were cheaper in August in six regions compared to the same month in 2020. Catalonia saw a decrease of 8.2 percent, Madrid a decrease of 8.1 percent, the Balearic Islands by -4.7 percent, Andalusia by -1.9 percent, and Valencia by -0.8 percent. 

Brits are buying fewer properties than ever in Spain

Demand from British buyers fell by 2.62 percent between April and June compared to the first quarter of 2021, according to data from the College of Registrars, due to a combination of Brexit and the Covid-19 pandemic.

UK buyers accounted for 9.5 percent of foreign property sales in the second trimester of 2021, a decline from the 12.11 percent registered between January and March 2021.

This is well below the number of Brits who bought in 2015, a year that saw the highest number of British investors, who at that time made up 20 percent of foreign buyers.

While Brits still make up the largest group of foreign buyers in Spain at 9.49 percent, they are closely followed by the Germans at 9.04 percent, the Moroccans at 8.32 percent and the French at 7 percent.

Property prices are collapsing on the Mar Menor

Murcia’s Mar Menor was one of the most popular destinations for property purchases in Spain, but three environmental disasters in five years have sunk the price of housing. According to estate agents in the area, some house prices are now 30 percent less than they used to be.

This is especially true in the waterside municipalities of Los Urrutias and Los Nietos, which have seen their property values fall even more.

As a result of agricultural pollution, water extraction and a rise in temperatures the environmental situation in the Mar Menor has been getting worse year after year. Over the last couple of weeks, 4.5 tonnes of dead fish had to be cleared from the lagoon.

The devaluation of homes along the Mar Menor is not a new phenomenon, but the environmental disaster which occurred in 2019 and again in the last couple of weeks has made the housing situation worse. La Opinión de Murcia reported that since 2016 the price of real estate has fallen by more than 30 percent and some property prices have already fallen by 60 or 70 percent. Manolo Navarro, who runs a real estate agency in Los Nietos told La Opinión de Murcia, there are now houses for as little as 25,000.

READ ALSO: Five stats to understand why Spain’s Mar Menor is full of dead fish 

Did you know?

The average price for renting a room in a shared flat in Spain at the end of 2020 was €269.49 per month, according to Pisos.com.

They revealed that Barcelona and Madrid were the most expensive places to rent a room with an average price of €453.91 per month and €426.88 per month respectively.

During the Covid-19 pandemic, however, rental prices have decreased rapidly. A study by Spanish property portal Idealista, revealed that between May and November last year, Barcelona saw the sharpest fall in rents with prices per square metre slumping by 13 percent. 

According to the Rentger blog by the same property search giants, rental prices continued to fall in the first quarter of 2021 by 1.9 percent. 

If you want to read more about the latest property news, you can read last week’s property newsletter here

READ ALSO: How much does it cost to rent a room in Spain in 2021?

Properties in Spain

Member comments

Become a Member to leave a comment.Or login here.