Property Market Report Spain Jan 25: Trends, Evidence & Insights

PART 1 – WIDER TRENDS, EVIDENCE AND FINDINGS

Influences on the market

1. General comment
2. Government announcements – 13th January 2025
   1. Headlines and consequences
3. MAD scandal of buying off-plan
4. Okupas and Inquiokupación.
5. New Rental Index
6. Increasing importance of Energy Certificates (CEE)
7. Valencia’s flood
8. Continuing drought
9. Year round summertime – Clocks and tourism
10. Electro-Magnetic Radiation (EMR)
11. Animal Law
12. A home or a business?
13. Benefits of wider and faster digital connectivity
14. EV’s
15. Branded property (2)
16. Gibraltar Access Treaty (2)
17. Construction costs and higher prices

General

• As can be seen from the number of items below, and the range of comments by the contributors, the last six months and for future months have been and are anticipated to be very busy with changes.
• It principally relates to the politicians suddenly ‘waking up’ to the housing problems throughout the country, but principally in the major tourist towns and areas. Their problem is reflected throughout Europe and probably the world. Second homes are becoming a major problem in areas where there are not sufficient primary residence homes.
• On Costa del Sol, nearly all the major construction that is being carried out is for high- quality, high-priced accommodation aimed at individuals seeking a holiday home that they hope to rent out to other tourists when they are not in residence; and buy-to-let investors also intending to provide holiday accommodation.
• The prices and the subsequent rents that must be achieved to maintain the overheads, are such that even hoteliers are having to say that they will have to reduce prices or they’re going to push tourists away to cheaper climates.
• It is a common problem of over specification and therefore costs moving properties and goods to higher price brackets that the customers cannot afford.

A picturesque and narrow street in Marbella old town, province of Malaga, Andalusia, Spain.

Sanchez ‘Earthquake’ – Highlights that will affect valuations and development. (% is our estimate of the chance of it happening, assuming PSOE still in power!)

These were announced on the afternoon of 12th January 2025 and have shocked the property world and economists. It must be remembered that they are just a ‘wish list’ at present, but as long as the current Government is in power, are likely to become law. However, as always, the ‘devil will be in the detail’, with limited funds available at least slowing the implementation of some. Regional Presidents from other political parties are stating that they will not apply the more controversial ‘ideals’. They will affect some Regions of the country disproportionally, with major tourist areas and cities being most affected.

• A legal mechanism will be established so that the new Public Housing Company has priority in the purchase of homes and land. 100%
• Reforming the Land Law 100%
• New State Housing Plan for 2026. 100%
• The PERTE for Housing, aimed at promoting innovation and modernisation of the industrialised and modular construction sector, so that houses can be built in Spain in less time and at lower costs. 100%
• Need to mobilize existing housing – public guarantees that will protect both owners and tenants who participate in affordable rentals. 100%
• Rehabilitation program for empty homes will also be launched to allocate them to affordable rentals. Aid will be granted to those who renovate a flat to put it up for affordable rent for at least 5 years. 100%
• 100% exemption from personal income tax for owners who rent their property according to the Reference Price Index. 100%
• (Generally, the provision of all these state properties will remove many tenants from the private market, thus possibly reducing rents.)
• Tax reform so that tourist apartments “are taxed as what they are: a business”, promoting within the framework of the new European directive on VAT – application of a taxation to tourist rentals that is on par with other economic activities. 100%
• After a thorough study (SS added Bold), the purchase of homes by non-resident non-EU foreigners will be limited. Specifically, the tax burden that they will have to pay in the case of purchase will be increased up to 100% of the value of the property. 10% at 100% and 100% for 10%
• The regulation that pursues fraud in seasonal rentals will be tightened and a fund will be created so that regional and municipal governments can reinforce inspections. 100%
• Aid for rent, purchase and rehabilitation of 20,000 million euros, benefiting more than 1.5 million households. 100%
• Guarantees for the purchase of the first home and rental vouchers of 250 euros per month have been granted to more than 66,000 young people. 100%
• Communities of neighbours can limit the proliferation of tourist apartments. 100%
  Creation of the single register of seasonal accommodations. 100%
• Extension of the moratorium on evictions and the suspension of mortgage evictions until 2028. 60%
• Reaction by Spanish property professionals has been sceptical, both in considering that it’s largely political propaganda and that the chances of getting it through parliament are extremely thin.
• My own opinion is tempered by the phrase,‘After a thorough study’. To me that indicates that Sanchez may not support all the ideas himself, but that they have been put forward to appease his more left-leaning political partners.

MAD scandal of buying off-plan

• Currently, it appears that buyers of off plan property have no legal right to carry out detailed inspections of their new property until it has been signed over to them at the notary and they have paid the full purchase price.
• In our MAD (Missing, Agreed extras, Defects) inspections, we find many problems in new properties and it is scandalous that there should not be more protection for purchasers. In such a consumer orientated society it is surprising that this is the situation, although it perhaps reflects the fact that the majority of purchasers are non-resident, and foreign to Spain, or are Investor businesses ready to rent and not occupy the properties themselves.
• At the Notary, the buyer has few 100% friends who are not dependent on the signing for their income. None of them are wanting to point out sometimes minor, but occasionally major physical errors and deficiencies that can make the property uninhabitable in some of the worst instances.
• An agent has stated his experience is that ‘only’ 10% of their clients buying off plan have taken the developer to Court for non-compliance. That’s many, many families distressed with dreams shattered. To reach the Courts they need funds and how many others don’t have those. And more just give up as they are told “you’ll never win” and “it’ll take years anyway, so just get on with life.”
• https://surveyspain.com/2024/12/17/the-mad-scandal-of-off-plan-buying/

Okupas and Inquiokupación.

• Spain has a significant problem with illegal occupation of property. This is largely due to there being difficulty in the owner regaining occupation by processing through the legal system. If an occupier has been in for 48 hours or more and can prove that they have no financial ability to stay elsewhere and/or have minors in their care, the legal process can upon occasion side with them despite their having no rights of occupation. Making matters worse, the legal owner of the property continues to be liable for local property taxes, community charges, and electricity and water costs used by the occupiers. It is illegal for them to shut off electricity and water.
• However, there has been a recent change in the law which permits legal action to be fasttracked in 15 days from when the occupation was discovered to which apparently there is no defence. However, there must be a possibility of the occupiers re occupying and gaining another 15 days and so on.
• This does not benefit owners who have agreed a tenancy but then find that the tenant does not pay the rent or expenses after the first month or so. Also, in knowledge of this, false rental agreements are displayed by the occupiers who have broken in which, at the very least, delays the legal process. There are indications within the last few days that all leases must be registered and if there is no registered lease, the occupier does not have any right to stay in the property.
• The logic of these legal doubts and the lack of action in correcting them, perhaps lies in the inability of the authorities to provide social housing for individuals and families who cannot provide for themselves. However, it is not correct that individual owners should carry the costs, sometimes considerable and lasting for several years.
• https://surveyspain.com/2024/08/07/we-all-should-have-housing-for-free

New Rental Index

• In Spain, most long-term leases have an annual rental link to the cost of living index (CPI) by which the rent is increased on an annual basis.
• However, as from the beginning of 2025, for residential leases granted after the 25th May 2023, that index is replaced by a new reference index for the annual update of rents in residential lease contracts (IRAV). This is retrospective on those leases and future leases and must be the index quoted and applied. INEbase / Nivel y condiciones de vida (IPC)/Índices de precios de consumo y vivienda /Índice de referencia de arrendamientos de vivienda / Últimos datos
• The purpose is to prohibit ‘excessive’ increases in rent and was brought about by
  substantial inflationary increases in the CPI a few years ago. The new index is prepared by the government statistical office based upon the lower value between the annual variation rate of the CPI, the annual variation rate of the underlying CPI and the adjusted annual average variation rate will be taken. Calculation of the Annual Variation Rate (IRAV)
• However, this levelling out does mean that residential leases are no longer as immediately inflation proof investments as they were.

Increasing importance of Energy Certificates (CEE)

• In working towards zero emissions of CO2 by 2050, it’s been declared that all properties must have a minimum energy rating of E by 2030 and to D by 2035.
• This is going to be extremely challenging, if not impossible in a country where apparently 80% of properties do not meet these grades at present.
• The materials and workers to carry out the improvements are not available, nor is the finance for many property owners and the government does not have funds to be able to pay grants for the work.
• Oil CH has been prohibited in Spain since 2023, meaning that new developments cannot install this kind of CH. Existing ones will have to be gradually substituted and the deadline for this is the year 2035.
• No new fireplaces are permitted to be installed in buildings since 2023. However, existing ones may still be used, but there will be a possibility that their use must be phased out.
• Why an energy certificate (CEE) in Spain is essential for buyers
• Spain Energy and Carbon Rating: A Path to Net Zero

Traditional house and courts with flower in Cordoba, Spain

Valencia’s flood

• The disastrous but largely localised flooding that occurred to the South of Valencia city is going to take many years to recover from.
• It’s estimated a year’s rain fell in a matter of a few hours. No amount of preparation or flood protection could have coped with that.
• 224 people died, with 104 of these being over 70 years of age. The area and its people were overwhelmed in such a short time that these people just could not escape.
• Around 5,800 houses were destroyed with approximately 3,500 families losing their homes.
• Approximately 120,000 cars were destroyed.
• There has been disappointment with the initial speed of local governments reaction and the follow-on speed of financial compensation.
• Unfortunately, Valencia and the eastern coast of Spain has a history of severe storms and localised flooding principally due to a phenomenon known as DANA or a ‘Cold Drop’. It occurs when warm moist air over the warmer Mediterranean Sea meets a pocket of cold air in the higher atmosphere. This then causes the warm air to lose its moisture in the form of intense rain. The higher than normal temperatures of the sea due to global warming meant that the moisture in the warm air was huge and so caused the intense flooding below.

Continuing drought

• In contrast and showing the localised nature of the phenomenon mentioned above, despite the rains during November and December, many parts of eastern and southern Spain are still suffering from drought.
• The interior of Andalucía, Almería and Alicante’s Marina Baja are still suffering fromsevere drought with reserves a little better than last year at this time, but still well below the historic average.
• The Costa del Sol needs to remain under ‘emergency’ conditions and water-saving measures need to be increased. Almería’s situation is the most critical with less than 10% water reserves.
• Sourcing from underground reserves, agricultural re-use of ‘cleaned’ water and especially desalination plants should correct the situation in the future. However, it’s going to be a few ‘sticky’ summers before all these are in place.
• Greater discipline will be required by all consumers, be they residents, tourists, businesses, and agriculture.
• And yet there are thousands of new properties being built, all of which has used vast quantities of water in the construction and will require even more on a regular basis when they are occupied. Where is all that extra water to come from?
• You, your lifestyle and property
• What the hell, we can live with whatever comes

Year round summertime – clocks and tourism

• The EU decided that each country could chose whether to have special ‘summertime’ or continue with the same all year.
• 2024 was the last year that winter/summertime changes happened in Spain. From March 2025 when the clocks spring forward an hour, they won’t be changed back again in October.
• It will mean that mornings will be darker in winter, but the evenings will continue to be lighter.
• That will complicate the time calculations between other countries in the EU who have not decided to do the same, with that complication needing to be recalculated every Spring and Autumn.
• With this decision Spain moves even more out of step with nature, as geographically being to the West of the 0º meridian it should be the same as the Canary Islands, Portugal and the UK. Unless they all change too, it will now be 2 hours different from them in the winter.
• The decision will be reviewed in 2026.
• Year-round summertime in Spain: how will it impact your business?

Electro-Magnetic Radiation (EMR)

• Survey Spain are increasingly being asked to comment on EMR risks in the vicinity of properties they look at.
• All electrical items and wiring emit electro-magnetic radiation. Some people believe that the radiation is harmful. This is particularly the case with overhead HT cables and sub- stations.
• When conducting property inspections, we note the presence of nearby power lines,
  substations, and mobile phone masts, and for valuations we consider that their presence will reduce interest in the property and is likely to reduce its value.
• More details can be found here. Risks from living near electricity power lines and substations

Animal Law

• Animals cause many conflicts in urban communities, from noise and ‘poo’ to destroying local wildlife and ‘being there’.
• Peaceful country properties can become ‘unliveable’ due to neighbour’s disruptive animals, especially at night.
• Note that the new law specifically excludes care and treatment of dogs used for hunting. As there are a great many examples of these animals being neglected and ill-treated, the exclusion can only be the result of hunting lobbying pressures.
• Generally, the new law is favourable to animal’s welfare and them being treated as ‘sentient beings’
• However, the responsibilities of the ‘sentient beings’ in charge of them, their owners, are also clearly set out.
• All animals must be registered and ‘chipped’ so they can be identified.
• Owners must have 3rd party insurance.
• Leases can state that the tenant cannot keep an animal in the property.
• And many more – Animals in communities in Spain

Zuma, our rescue pup.

A home or a business?

• Many buyers of property anticipate that they will be able to recover the majority of their costs from renting out the property on a seasonal basis, reserving times for themselves, their family and friends.
• The economics of this are changing significantly, which could well lead to fewer buyers at the middle and lower value ranges and to a number of owners needing to sell as the economics of their purchase no longer makes sense. The increased value of their property it’s likely to mean that they will be able to do so at a notional profit. However, if they take the buying and selling costs, which can be approximately 12 to 15% of the price each time, then they will need to have made at least 25% to have made a real profit.
• The Spanish Supreme Court recently declared that it was legal for urbanisation communities to agree on the basis of 60% of owners that they could ban the use of apartments, townhouses or villas for short-term tourist rentals. https://surveyspain.com/2024/09/10/prohibition-on-tourist-rentals-in-communities
• The government has also proposed and no doubt the tax authorities will act upon it, that such apartments etc should be taxed as a business and that IVA should apply to their income in the same way as it does to hotels. This is currently understood to be 10%.
• Non-EU resident owners are further hit by tax being levied on the gross income without any allowances for running expenses. It will be interesting to see whether that will continue if the ownership is to be treated as a business as it is a long standing tradition that businesses can offset expenses against their gross income and be taxed on the net.
• Many cities and municipalities are restricting or stopping altogether the issuing of licences for tourist apartments and the like. Málaga city issued a decree that only properties that have separate services and a separate access from others in the building can be granted licences and have declared that they will be rescinding current licences that do not comply.
• The majority of tourist rentals displayed on multi-listing sites such as Airbnb apparently do not have licences in any case, and the authorities are threatening to penalise the multi- listing sites for displaying these and, of course, taking action against the offending property owners.
• Hoteliers and other tourist related businesses have also been protesting against the imposition of the requirement for each tourist individually to provide up to 42 items have information, financial and personal, at the time of registration on the property. This must be a joy for all when a bus load of tired tourists arrives!
• The majority of these actions are stimulated by the significant increase in prices and lack of availability of city centre accommodation for traditional city dwellers and their families. The market is being dictated by second home and wealthier investor individuals and businesses from inside and outside Spain. In some places it has got to the situation thatthere could be tourists but nobody to serve them in the bars restaurants and hotels.
• All in all, tourists are going to find it much more difficult to obtain accommodation from now on and that’s with the additional cost of some areas such as the Balearic Islandsadding a charge to tourists for entry.
• As a country who’s national economy is so dependent upon tourism, with the latest figures showing it accounts for 13% of the country’s GDP, undoubtedly the balance is going to swing against that business and there will be a national economic crisis. It may not show itself until 2026 as tourists seek other places after their experiences in 2025.

Benefits of wider and faster digital connectivity – Digital Nomads

• The issuing of Golden visas is to cease at the beginning of April, with Spain, like many of the other countries in the EU, being pressured due to Community security concerns as through the Schengen system the individuals have the ability to travel unrecorded throughout the majority of the Community.
• These visas had permitted individuals and their families to become temporary and eventually permanent residents of Spain by the purchase of a property in excess of 500,000€ euro or investment in a business or purchase of Spanish government stocks. A side effect of this had been that a number of properties were marked up to over 500,000€ euro when their true market value should have been in the mid or even lower 400,000s.
• Whilst being seen as a disaster by some estate agents, the actual number of golden visas issued has been relatively small.
• Likely to be used by many more are they so-called digital nomad visas issued for a period of up to five years to individuals showing that they are employed in another country but have the ability to work from anywhere that they can get an Internet connection. Fortunately, Spain has an excellent Internet coverage with even the smallest Pueblo likely to have 5G mobile coverage or fast fibre landline connection.
• There is also the non-lucrative visa which can be granted to individuals such as retirees as long as they can show they have sufficient income and health insurance that they should not be a cost to Spain’s Social Security services. In this way, many of the UK property owners will be able to avoid the 90 day rule which restricts them to a maximum of 90 consecutive days within the Schengen area after which they must be absent for a further 90 days. There have been continuing negotiations for that rule to be amended do at least combining the two sets of 90 days to 180 days which would permit the convenient wintering in Spain with summer in the cooler northern climes of their home country.

Population

• Spain, like many developed countries, is finding that its native population is not being replaced by births and being way below the 2.1 per couple that is required to maintain a level population. As a result, population balance is becoming older, which puts more demands on its social security, pension and health systems at a time when fewer younger people are entering the working population and contributing to the costs of those systems.
• McKinsey Report published 15th January 2025.
• The only answer would appear to be immigration from other countries with ‘surplus’
  younger population such as in Africa, and many individuals there are seeking by all the means they can to enter the developed countries, legally and often illegally.
• These immigrants have different cultures, social norms, and often most contentiously religions to the developed countries they wish to reside in, which causes conflict. The societies, both immigrant and resident, must find ways of integrating and educating these essential workers in the conventions of their new home culture if the level of economy is to be maintained to the level that their existing more elderly population wishes to continue to benefiting from. The deterioration of the economy will occur anyway due to the changes within the resident population and not due to immigration. The current Spanish Government has recognised this by agreeing to issue 300,000 residence permits to established but possibly illegal immigrants.
• Regarding the property market, these immigrants do start at the lower end of the property ladder, again putting pressure on the availability of accommodation for the younger resident population.
• Also, changes within the EU, such as the inclusion of Romania and Bulgaria into the Schengen system as of the beginning of 2025, will increase the number of purchasers from those countries. The pressures of Ukrainian war are also likely to lead to individuals and money coming to safer places, as it has been doing from Poland, Ukraine and other Russia bordering countries over the last couple of years. This influx has in fact been one of the reasons for the maintaining of development in all the coastal areas.

Bridge of Ronda, a famous white villages of Malaga, Spain

EV’s

• There is a worldwide drive for the adoption of electric vehicles and the phasing out of those fuelled by mineral oil in its various forms.
• However, it appears that the bulk of properties are not acclimatising themselves to this in that in the hundreds of properties we have inspected over there last few years, only a handful have specific EV charging points within their garaging or indeed the urbanisation as a whole. Perhaps concerns over battery fires have prevented them being installed.
• The ability of national electrical systems to provide the recharging required should all personal vehicles become EV’s is going to be a major challenge and may lead to the continuation of fossil fuel electricity generation longer than was planned.

Branded property (2)

• Over the last two or three years we have seen the development of urbanisation marketing incorporating well known consumer brands as part of the promotion and development and property management processes.
• These the two forms:
  • a. The quality brand that has no prior property link, being associated with the development, ensuring that the development is of similarly high quality and more important, cache. It is that name association that is important. And yet, just today, the FT reports that ‘Gucci and Saint Laurent have struck a deal to sell majority stakes in three of its high-profile Parisian real estate properties to French private equity group Ardian.’ Whilst these refer to commercial properties, what is to stop them selling off any stake in a residential building, with it thus becoming known as the ‘former’ Gucci building or the like. Following fashion is a fickle thing.
  • b. Association, through construction and management by a major hotel chain. This is much more than an ethereal attraction of a mere ‘name’, as it promises the buyer a quality experience up to the standard of the hotel name. It’s more a management contract and an extension of the hotel by the provision of ‘off site’ self-contained suites, benefitting in a similar way to those private wings of hotels that have existed for many years. This is more likely to be something of lasting value, but still depends upon something that can easily change over time
• The valuation/appraisal of both of these is extremely difficult. Both benefit from exceptional marketing and are likely to achieve their asking prices, which can be 20% or more than the equivalent if there was no association. It’s the resale value that is the problem, especially for the branded property described in a. above. There is likely to be no essential difference in the heritable element of the property to one that doesn’t have a brand name. It’s the fixtures and fitting, that will mark it out as different, but these will all deteriorate through usual ‘wear and tear’. There is unlikely to be a replacement policy so over time there will only be the name. And what if that is discredited for personal or business actions of the company or its founding family.
• The hotel chain association is different as there should be their property knowledge applied to the construction and certainly the finishings. The management benefits, which will need to be paid for in higher annual charges, will remain as long as the hotel chain maintains it’s association. But contracts end and company ownerships and philosophies change, so much of the added value will only be there as long as there is quality management, but the value may be reduced by the high costs of occupation.
• There has been little formal guidance, but we assume that type a. will end with a slightly higher value due to the name. Type b. will maintain their higher value as long as the association is with quality management. Should that change, there could still be a higher but reduced value assuming the association has led to design and construction quality benefits.
• https://surveyspain.com/2024/30/04/branded-residences-how-much-value-is-associated-with-the-brand

Gibraltar Access Treaty (2)

• The signing of the International Agreement on Taxation and the Protection of Financial Interests between Spain and the UK in 4 March 2019 – which came into force two years later in 4 March 2021 – is of historic importance. It was the first treaty signed between Spain and the UK concerning Gibraltar since the Treaty of Utrecht in 1713, when the Rock was ceded from Spain to the UK. However, it does show that it can be done.
• Since Brexit, the UK Government, representing Gibraltar, and the EU, representing Spain, have been negotiating trade and access agreements. To date, these appear to have stalled, so that e-control booths have been erected on both sides of the border, as travellers will require to enter their details on first passing through and confirm identity on subsequent passages.
• There will be controls on all goods and items passing over the border, like those that occur in Ireland, which will greatly complicate trade.
• Negotiations are continuing, but given the delay it’s unlikely that there will be a speedy conclusion accepted by both sides. If there was agreement, perhaps with EU ‘policing’ only at the port and airport, then the border could probably be dismantled andSchengen style access permitted. Our understanding is that the intractable problem for both parties is the identity of the EU police, as Gibraltar refuses to allow any Spanish control of their territory and Spain demands that the ‘police’ should be theirs as representatives of the EU.
• Meanwhile, Gibraltar continues to reclaim seabed for development recognising the 12-mile rules of the sea, whilst Spain sticks by the strict wording of the agreement ceding the land to the UK, which was written prior to the law of the sea being adopted internationally, including by Spain.
• In Spain, the Campo de Gibraltar municipalities wait for a decision, which could transform their economies. Similarly, the residents of developments like Alcaidesa and Sotogrande, and those in Gibraltar, await the ability to use all the facilities and services on their doorstep without interference.
• As an extra, Gibraltar residents will be treated as non-EU purchasers of property in Spain and so be subject to any additional purchase tax should that come into being, as described in the ‘Earthquake’ section above.

Construction costs and higher prices

• We can do no better than quote Barbara Wood of Property Finders and El Pais, as her recent article contains the figures that show some of the macro reasons for increased costs.
• Lack of materials at the shock of the Russian invasion of Ukraine led to immediate increases. and scarcity of skilled workers and the costs they are having to pay for their own accommodation and living expenses, have led to localised increase in prices.
• So far, the market has been willing to pay, but as mentioned below there is beginning to be a reluctance so that developer’s margins will need to be cut, with there being plenty of scope for that if the 100% gross profit figure required by some developers is to be believed.
• https://www.thepropertyfinders.com/blog/posts/more-construction-needed/

Altea on Costa Blanca, Spain

STATISTICS

We continue to keep a record of the average difference between Asking Price and Actual Selling price, where we have been supplied with that information from reliable sources. These are often from clients for whom we have carried out a building survey/home inspection, and they inform us what price they are actually paying for the property after receiving our report. We can use that information to improve the accuracy of our current market valuations.

Average difference between asking price and actual selling price

1st half of 2024

January to June – 5.69% A significant fall since the last half year, most probably caused by the shortage of property lessening the negotiating strength of the buyers. It must be remembered that this is an average of all the Regions of Spain in which we are active and varies from -12% to only – 1.32%.

2nd half of 2024

July to December – 7.76% (July to September 7.22% and October to December 8.31%)
A substantial increase since the first half of the year. Considering the reports of the lack of property it is surprising. However, one perhaps uncharitable explanation could be that the advising agencies wanted to see a sale as they needed the fee income and so recommended their clients to accept an offer when in the past they would have continued the negotiations to try to obtain a higher price.

Changes in multi-listing site – Resales Online

Comparison of figures are restricted to one region, and we have chosen Costa del Sol, as being the most active on the website. August 2024 figures in brackets.
We found on 15th January 2025 that there were;

• 11,057 properties for sale at 100,000€ euro or more. A very slight – 0.4% drop on our last recorded analysis (11,543) in August 2024, which had seen a significant % drop (-16.6%). The reports by estate agents of there being fewer properties available may in fact be that there are many more agencies trying for a ‘slice of the same size of pie’.
• 3,400, 30.75% were priced at 1,000,000€ euro or more. Given our valuation experience of significantly higher values, it is surprisingly marginally less in number (3,546), but higher in % than there were 5 months ago. (30.7%)
• 273, 2.47% of the total of 100,000+€ euro, a significantly increase from the (192, 1.16%) last time, were identified as representing new developments.
• 151, 55% of the total of new developments were priced at more than 1M€ euro. A huge
  increase in number (94) and % (49%) from last time.
• 1,184, 10.7% of the 100,000+€ euro properties are found to have a discount of -10% or more since first listing, which is less in % terms than the previous analysis, and lower in numbers. (1260) (11.6%)
• Those increasing their price by +10% or more was 804, 7.27%, which is slightly lower than the previous period. (868) (7.5%). Again, unexpected as we are finding values increasing in our valuations.
• 421, 12.38% of the 1M+€ euro properties were found to have reduced their prices by 10% or more, being marginally less in number and % than previously. (446 and 12.6%)
• 367, 10.8% of the 1M+€ euro properties to have increased their price by +10% or more, again being less in number and % than the last period. (390 and 11%)
• 1,446 were found to be available for long-term rental, an increase from (1,124), again unexpected due to the publicity indicating a shortage of these.
• 218, 15.07% being available at 1,200€ euro per month or less, a substantial increase from the (141 and 12.5%) last summer.
• 713, 49.3% were available at 2,500+€ euro/month, a significant increase in numbers but drop in %. (609 and 54%)
• 296, 20.5% at 5,000+€ euro/month, a higher number but a drop in % since August. (261 and 23%)
• 1,273 properties are available for short-term rental, less than at the peak of the holiday season. (1,388)
• Only 149, 11.7% of these properties are shown to have a short-term licence number. (160 and 11.5%). Given the accelerated action the Government is proposing against unlicenced short-term letting, including against the multi-listing companies for permitting them, a substantial change is expected to occur over the next period.

Analysis

• It must be remembered that this is just one listing agency, so there could be differences if all listing agencies were included.
• There is little difference in the numbers of property available, indicating that the lack of supply found by agencies is due to the substantial increase in their number. Some of these new ones are international ‘players’ and so they are likely to attract more sellers due to their skills and budgets for marketing themselves.
• The increase in the number of new developments was expected as many cranes can be seen all along the coast and these are rapidly coming to market, even though it may be many months before they are ready for occupation.
• The changes in prices is generally the same and although our valuations are generally showing increases, we are receiving notifications from agents of price reductions, perhaps indicating an ‘over optimism’ when securing the client’s selling instruction.
• The number of properties available for long-term rental is reassuring, but the significant increase in those monthly rentals will be taking them above what can be afforded by the average services and trades worker and their family.
• That the unregistered short-term rentals figure is still so high is surprising, with the ‘sword of Sanchez’ hanging over them in the shape of substantial fines if they are detected.