COASTAL property sales progressively increased by 13.1 percent in Spain last year, according to a report by the consultants DBK.
In 2003 coastal property sales increased by 7.7 percent (when compared to the 2002 statistics), particularly in the Balearics.
This “expansive tendency” has been favoured by the low interest rates and the other less attractive investment opportunities, said DBK.
This demand has not only been fuelled by residents and nationals in Spain, but also foreigners who are looking for second homes in the sun.
Property sales have been particularly noted in the Balearics, Andalucia, Valencia, Catalonia, the Canary Islands and Murcia.
According to the DBK report called “Coastal Property Promotion”, 86 percent of all properties sold in 2004 were in coastal regions, accounting for around 156'000 properties in total. More houses and flats were sold in Andalucia than in any other region in Spain last year.
At least 55'000 homes were sold in Andalucia, which represents 31 percent of the total sold.
In second place is Valencia with 47'500 houses sold, followed closely by Catalonia with 31'000 homes.
Although Murcia features at fifth place for the most homes sold in 2004, the statistics are remarkable as sales rose by 47 per cent compared to the national average of 12 percent. For the next few years the consultant company estimates that there will be a progressive moderation in the sector, with sales estimated between 170'000 to 175'000 for 2005. They also calculate that people will start buying more homes away from the coast, chiefly because of the high prices and the saturation of some areas.
Buyers, the report said, will favour inland property.
The number of foreign buyers, especially British and Germans and to a lesser extent from the centre and north of Europe, will continue to rise, the report said.