2024 Construction Surge: British Buyers Flock to Spain

The first half of 2024 was marked by robust construction activity, with British buyers seeking diverse properties in Spain's sunny summer market.

The Spain real estate market is experiencing a remarkable resurgence, as evidenced by the latest report from Tinsa, a leading Spanish property research firm. The findings from July 2024 reveal a 3% increase in house prices over the past year, with a notable 0.7% rise occurring just between June and July. However, the most striking statistic is the 16.4% surge in crane activity observed in May 2024, signaling a bustling summer ahead for Spain's construction industry.

A Flourishing Construction Sector

The construction sector's vitality is underscored by the activities of prominent home builders like Taylor Wimpey España. This leading developer has already launched several new projects in 2024 and has ambitious plans to unveil additional sites before the close of the year. The uptick in British buyer reservations—up 12% year-to-date as of August compared to the same period in 2023—further illustrates the growing interest in Spanish real estate.

Regional Highlights: Mallorca and Costa Blanca

Spain's diverse property offerings are exemplified by developments in Mallorca and the Costa Blanca. Mallorca, renowned for its vibrant property market, has seen prices in the Balearic and Canary Islands rise by 8.6% over the past year, significantly outpacing the national average. The island's appeal lies not only in its stunning landscapes but also in its year-round pleasant climate, making it an attractive destination for both local and international buyers.

Townhouses have emerged as a particularly sought-after property type on the island. According to the Taylor Wimpey España team, buyers are increasingly looking for homes that allow them to integrate into the local community while enjoying proximity to the sea. A prime example of this trend is the Es Voltor development in Esporles, located at the base of the picturesque Tramuntana Mountains. Priced from €755,000 plus VAT, these three-bedroom properties feature private gardens and spacious, south-west facing terraces, complemented by a communal pool. The charming town of Esporles, known for its rich gastronomic heritage and natural beauty, is just a stone's throw away, with the nearest beach only 8 km distant.

On the opposite side of the island, the Aura development in Artà is also garnering attention from British buyers. These three-bedroom townhouses, starting at €835,000 plus VAT, boast impressive main bedrooms with dressing areas and private terraces. Residents can enjoy both private and communal gardens, as well as a delightful shared pool, making it an ideal choice for families and those seeking a tranquil lifestyle.

The Costa Blanca: Value and Lifestyle

The Costa Blanca is celebrated for its exceptional value, abundant sunshine, and stunning beaches. Here, townhouses are available at competitive prices, such as those at Breeze in Balcón de Finestrat (Alicante), starting from just €385,000 plus VAT. Located a mere 5 km from the beach and 2 km from the nearest golf course, these homes cater to British buyers eager to embrace an outdoor lifestyle in Spain. With over 10 km of beaches surrounding Finestrat, residents have ample opportunities to enjoy the sun and sea.

For those seeking even closer proximity to the beach, the Azur development at Alicante Golf offers four-bedroom townhouses starting at €615,000 plus VAT. Situated just 2 km from the beach, this boutique residential community features only ten townhouses, ensuring exclusivity and a sense of community. The development includes private rooftop solariums that provide breathtaking views, while a charming playpark caters to the youngest residents.

The Broader Economic Context

The robust performance of the Spain real estate market is not merely a reflection of local demand; it is also indicative of broader economic trends. As Spain continues to recover from the economic challenges posed by the pandemic, the construction sector is playing a pivotal role in driving growth. Increased investment in infrastructure and housing is creating jobs and stimulating local economies, further enhancing the attractiveness of Spain as a destination for property investment.

Moreover, the influx of foreign buyers, particularly from the UK, underscores the international appeal of Spanish real estate. The combination of favorable climate, lifestyle opportunities, and competitive pricing makes Spain an enticing option for those looking to invest in property abroad.

The latest data from Tinsa highlights a thriving construction industry in Spain, characterized by rising house prices and increased crane activity. With developers like Taylor Wimpey España leading the charge, the market is poised for continued growth, particularly in sought-after regions like Mallorca and the Costa Blanca. As British buyers show a growing interest in Spanish properties, the landscape of the Spain real estate market is evolving, offering diverse options that cater to various preferences and budgets. The future looks bright for Spain's property sector, promising a busy and prosperous summer of building and investment.