06/14/2017 12:00 – Updated: 06/30/2017 19:20
The crazy eighties were running. The ‘Un, dos, tres’, space directed by Chicho Ibáñez Serrador and presented by Mayra Gómez Kemp, threw the house out the window every week with prizes such as cars, trips to Cancun or apartments in Torrevieja, Jávea, La Marina, La Manga del Mar Menor or Almuñécar. Its substitute, ‘The fair price’, presented by Joaquín Prats, took the baton and further popularized the one that was beginning to become the great Spanish dream: the ‘pisito ‘on the beach that not a few managed to turn into reality. The madness resulted in hundreds of cranes and promotions scattered along the entire coast, many of which were half-finished when the housing bubble burst.
Since then, the digestion of that huge brick It has been slow, intense and painful, and it was not until a year ago that the coast began to see the light at the end of the tunnel. As if it were an oil stain, the recovery of the residence marketl started in large cities such as Madrid or Barcelona has slowly spread throughout the Spanish coast and, although there are still quite important differences between the various coastal areas —even within the same province—, the truth is that there are more towns in recovery than on the downside. At least, this is clear from the report ‘Housing on the coast 2017’, prepared by Tinsa, which reveals positive signs in a greater number of coastal areas than in last year’s report.
The technicians of this appraiser observe that the situation of the vacation home It is clearly improving in 22.4% of the 58 strips that make up the Spanish coast (including the islands), compared to 8.8% last year. If we consider that in another 43.1% they are perceived signs of improvement, it can be concluded that in almost two thirds of the areas the vacation market evolves positively. A recovery that is reflected in the increase in the number of transactions, but also in the price increases, as can be seen on the map.
Canary Islands, Mallorca and Ibiza, smooth sailing
As has happened with the first residence, the behavior is very heterogeneous and there are important differences between markets. Thus, for example, the coastal areas where the vacation home shows clear signs of recovery are located in the Canary Islands, Mallorca and Ibiza, Costa Dorada (Tarragona), southern Alicante, the eastern coast of Malaga and the Cadiz coast between Tarifa and Conil. Also in Guipúzcoa, although, they clarify from Tinsa, “in this province the vacation component merges with the first residence market.”
Canary Islands, Mallorca and Ibiza, Costa Dorada (Tarragona), Alicante, Malaga, Tarifa and Conil show clear symptoms of recovery
In other words, in general terms and in a generic way, the Mediterranean is more advanced in recovery than the Atlantic and Cantabrian coasts, where adjustments are still observed, although generally with a situation close to the ground. Among the exceptions, the Canary Islands and Guipúzcoa, where the market is clearly improving, and the Cádiz coast, Pontevedra and Western Asturias, where there are also signs of recovery.
In all the provinces of the Mediterranean arc, locations are detected where the vacation home market evolves positively, with the exception of the Granada coast as a whole and much of the Almería coast, which, according to Tinsa’s technical network, are still finishing their adjustment. They also show a situation of cutout, although already close to the ground, the northern area of the provinces of Girona, Tarragona and Castellón, as well as the southern area of Barcelona and Valencia. It is also premature talk of recovery because the situation is still clearly adjusted on the island of La Palma, the Cadiz coast of Algeciras and its surroundings, the eastern Asturian coast and the Coruña coast.
Price rise spreads
The progressive return of demand and the opening of financing They are driving prices in a greater proportion of coastal municipalities. In 84 of the 136 coastal municipalities with available data, Tinsa statistics show year-on-year price growth, compared to the 71 enclaves that were growing last year. In other words, 62% of the municipalities.
In the opinion of the appraisers, in almost 57% of the 58 fringes of the coast analyzed, the technicians point out that the prices have evolved this year better than they did the previous one. In another 41% of cases, price stabilization in recent months is the main trend.
Among the municipalities that have shown the sharpest year-on-year price increases in the first quarter of 2017, Antigua stands out in Fuerteventura (26.1%), Gava (17.8%), Mojacar (17.3%) and the towns of Castell-Platja d’Aro (16.6%), Manilva (15%) and San Fernando, in Cádiz (12.4%). Premià de Mar (11.6%), Marbella (+ 1.3%) and Benidorm (10.9%) also stand out with a good evolution. On the contrary, some of the municipalities with significant downward adjustments in the first quarter they are Mazarrón (-12.8%), Orihuela (-11.8%) and Vejer de la Frontera (-11.3%) or Lepe (-10.6%).
Prices in Antigua (Fuerteventura) have shot up 26% in the last year
However, as Tinsa warns, when analyzing prices in coastal municipalities it is necessary to take into account the peculiarities that characterize this market. In some cases, these are large municipalities where the market closest to the coast has a different behavior than that of the areas located further inland. And, frequently, on the one hand, the sale of product in ‘stock’, sometimes at a liquidation price, and, on the other, the sale of new homes of better qualities and locations.
Hence, “at a time of Change of trend like the current one, the price statistics of the municipality as a whole may not accurately reflect the evolution of the purely vacation market “, they clarify from the appraiser. This would be the case of Torrevieja and Orihuela (Alicante), where the falls of 4.4% and of 11.8%, respectively, contrast with the perception of local technicians that the prices are stabilized and even registering increases in the best locations. They also seem excessive from a local perspective. falls which reflects the statistics in municipalities such as Blanes (Girona), Calviá (Mallorca) or Chipiona (Cádiz).
On the coast of Alicante, Barcelona, Malaga, Cádiz and the islands, the price rises they are more established and occur in a greater number of localities than in other provinces. The coastal municipalities of the provinces of Castellón, Huelva and Murcia are generally still cheaper, although there are municipalities that are experiencing better behavior, such as Huelva’s Isla Cristina (7.5%) and Águilas, in Murcia (5%).
The prospects for the coming months are generally optimistic. In 52% of the areas analyzed, the technicians point out that prices will evolve better in 2017 than in 2016, compared to 38.6% who thought so in the previous year’s report. Another 46.6% bet on stabilization.
Shopping is encouraged
In addition to the evolution of prices, another indicator that shows the recovery of this market is the evolution of sales, which has registered a radical change in the last year. In 84.5% of the areas, technicians have the perception that there has been an increase in transactions in the vacation home market, when the previous year this affirmation hardly occurred in 23% of the analyzed fringes of coast. However, there are areas where the market continues to stand still, with no apparent signs of reactivation of sales, such as the coasts of A Coruña, Asturias, Vizcaya, Algeciras and the eastern coast of Almería.
In general terms, according to data published by the Ministry of Public Works, the sum of transactions carried out in all the coastal municipalities analyzed in the report (including provincial capitals) has experienced a growth of 14.6% in 2016 compared to the year previous, up to 158,635 units. If the coastal municipalities that are the province capital are excluded from the analysis, the most active enclaves in transactions during the past year, according to the ministry, are Torrevieja (5,291 homes, 21.7% more than in 2015), Marbella (4,001 homes , -9.8%), Orihuela (3,839 homes, + 1.7%) and Mijas (2,506 homes, + 5.6%).
The official data referring to the sales Torrevieja (914 homes in 2016, 51% more than in 2015), Orihuela (874 transactions, + 15%) and Pilar de la Horadada (495 homes, + 90%) are the only new homes with the most coastal municipalities transactions, only behind Barcelona (1,314 units, + 7.5%) and ahead of Malaga (459 homes, -14.8%). The sum of new construction transactions in the coastal municipalities analyzed in the report reaches 14,064 homes, which represents a decrease of 6.8% compared to the 2015 Development data.