International buyers continue to purchase vacation homes in Spain’s coastal regions, pushing up sales and prices in major destinations such as Marbella, Costa Brava and Ibiza, according to a report Tuesday by Lucas Fox International Properties.
Across all the regions Lucas Fox covers, the number of prime sales, those over €900,000 (US$1.05 million), increased 27% annually during the first half of 2018, with significant growth seen in popular second-home destinations.
Prime sales in Marbella increased 50% year-over-year in the first six months of this year, while the average price rose 125% to €1.2 million (US$1.4 million) during the same period. Foreign buyers accounted for 83% of all sales, with one-third coming from the U.K., according to Lucas Fox.
“British clients are starting to buy again and if Brexit ends up being a ‘soft Brexit,’ that is likely to have a positive impact on the property market,” said Ira Brankovic, an agent with Lucas Fox Marbella, in the report.
The average sales price in Costa Brava increased 82% year-over-year to €1.3 million (US$1.5 million), while the number of sales quadrupled. French buyers accounted for 31% of the market, followed by buyers from the U.K. (25%) and U.S. buyers (6%).
Another popular vacation-home destination, Ibiza also saw its number of prime sales quadrupling during the first half of 2018. The average sales price was €1.2 million (US$1.4 million), representing a 10% increase from the same period of 2017. The majority of buyers were from European countries, with 13% coming from the U.K.
In addition to the coastal lifestyle these cities offer, Spain’s improving economy is also a draw to international buyers, according the report.
Spain is on track to be one of the fastest-growing economies among developed countries, with a 2.4% GDP growth during 2018, projected by the International Monetary Fund. The country’s unemployment dropped 10.8% in the first quarter of 2018, according to the report, citing figures from Spain’s National Institute of Statistics.