Market Report Spain & Andorra 2019-20 by Engel & Völkers Iberia

Market Report 2019-20 Spain and Andorra

MARKET REPORT 2019-20 · SPAIN AND ANDORRA

INDEX 00

World Economic Outlook

Real Estate in Spain

Editor’s Note

Real Estate Market Trend in Spain

132

Andorra

4 | Market Report 2019-20 Spain and Andorra

EDITOR’S NOTE

Juan-Galo Macià The balance sheet of the real estate sector in 2019 did not meet expectations. Although it was not a bad year, political and economic uncertainty affected the housing market, causing a drop in home sales in June and July, when a new mortgage law came into full effect. Housing prices rose by 4% while sales dropped by 3,3%. The belief among many Spanish households that Spain’s economy would soon undergo a recession, strongly contributed to this decrease in sales. However, no such recession took place in 2019 and no international organization believes one will affect our country before the conclusion of this report.

to recession. Interest rates are lower than at any period in Spain’s modern history, while banks are especially willing to grant credit. That’s a great formula for a strong preventative medicine. That being said, in 2020 the market’s behavior will be different than in previous years. It is possible that big capital, which was the driving force behind the market's improvement, will no longer be so and that economic uncertainty will cause investment to be withdrawn. The demand for investment will therefore be lower than in previous years.

Generally speaking, my current view is no different than the one I held last year. It is my opinion that the housing market in Spain is still in its expansionary phase. Nevertheless, within a phase of expansion there are some fluctuations, with periods that are excellent, others that

At Engel & Völkers, we are ready to face the future of real estate with confidence and strength. As a well-organized company, we are more than capable of adapting to the shifting tides. Whereas before we enjoyed smooth sailing, this year we will be pushing forward of our own accord. Our dedication to ensuring client satisfaction is

are good, and some that are simply stable, the latter of which would apply to 2019, and, according to our forecast, to 2020. I disagree with the analysts who think we are now approaching the transition from expansion

what will continue to achieve the excellent results we value. The demand for housing has not disappeared, it has simply changed. Fortunately, we possess the expertise required to accomodate the needs of our potential clients.

Juan-Galo Macià CEO of Engel & Völkers in Spain, Portugal and Andorra

Editor’s Note | 5

Current Situation

Global Economy

In 2020, the world economy will maintain its moderate growth rate of 2-3%, against 2.9% from last year. Its development will be heavily conditioned by the impact from the coronavirus, counteracting positive factors such as the easing of commercial tensions between the United States and China, an orderly Brexit, and an accommodative monetary policy. International organizations warn that the situation is fragile, and advocate extreme caution with regards to the full extent of the epidemic which started in China. Both the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD) have assessed the downward trends in their economic forecasts for 2020. The IMF has announced that the world’s economic growth could decrease by 0.1% and 0.2% as a result of the disease’s extent. The OECD has warned that the growth of the world economy could be reduced by 1.5% in 2020, which is half of what was forecast last November, if the epidemic is not stopped.

The impact caused by the coronavirus will affect all regions. The United States is the only developed country that will reach a growth of 1.9% to 2%, whereas the euro zone will not reach 1%, and Japan will see no growth at all, and might even enter a recession. Regarding China, a decrease from around 6% to less than 5% is predicted. In any case, the world economy will be capable of a swift recovery and see its growth increase by more than 3% in 2021. This will happen if the virus is successfully contained and if tax or monetary measures are implemented. Although monetary policy remains expansionary, extraordinary measures by the world’s central banks, such as maintaining financing costs at a minimum and injecting liquidity, are not ruled out.

GDP Growth Percentage Variation %

4,5 4 3.5 3 2.5

2011 12 13 14 15 16 17 18 19 20 21 22 23 24

Grupo de Cuatro

World

Source: IMF Footnote. Grupo de Cuatro = China, eurozone, Japan and US

6 | Market Report 2019-20 Spain and Andorra

Spain’s Economy

A low growth profile marked by global economic uncertainties for the better part of 2020, will condition the development of Spain’s economy. According to forecasts, it will grow from around 1.5%-1.6%, against 2% in 2019.

decline in investment and public consumption. While we can count on an upturn in some areas of private consumption, it will not be sufficient to compensate for the degree of moderation expected with regards to the domestic demand.

The external sector will stop contributing to Spain’s growth due to deteriorating world trade. Export will be weakened while imports will increase at a rate consistent with the demand, but not lesser than the demand, which is what happened in 2019.

The impact of the coronavirus on the economy could result in the downturn hitting its lowest point by the middle of the year. In the second half of the year, we will see a rebound in activity as a consequence of the improvement expected in the exterior sector, which will entail greater growth in the Growth Domestic Product (GDP), ranging between 1.7% and 1.9% in 2021.

The lower growth rate will also be conditioned by deterioration in the internal sector. We are expecting to see a

The Evolution of the GDP in Spain Inter-annual variation %

-5

2007T3 2007T4 2008T1 2008T2 2008T3 2008T4 2009T1 2009T2 2009T3 2009T4 2010T1 2010T2 2010T3 2010T4 2011T1 2011T2 2011T3 2011T4 2012T1 2012T2 2012T3 2012T4 2013T1 2013T2 2013T3 2013T4 2014T1 2014T2 2014T3 2014T4 2015T1 2015T2 2015T3 2015T4 2016T1 2016T2 2016T3 2016T4 2017T1 2017T2 2017T3 2017T4 2018T1 2018T2 2018T3 2018T4 2019T1 2019T2 2019T3 2019T4

Source: INE (National Statistics Institute)

National and External Demand Contribution to annual growth in terms of GDP volume

6 4

4,3

4,0 1,9

2,2

0,4

3,1 1,8

1,5 1,0

-0,1

-0,9

-2

0,1

-0,9

1,2 0,6

-4 -6

-5,3

-8 -10

-8,2 2009

2010

Domestic Demand

2011 Foreign Demand

2012

2013

2014

2015

2016

2017

2018

2019

Source: INE (National Statistics Institute)

World Economic Outlook | 7

Inflation could recover this year at an inter-annual rate of around 1.3% by December. However the impact of the coronavirus on the economy and on the price of petrol, will be stronger in the first part of the year, giving an average annual rate of 0.8%. The lower dynamics of the economy will also be reflected in the labor market. The creation of employment will slow down, even though more than 800,000 net jobs will be generated in the next three years. This year the rate of unemployment will decrease to around 13.5% and in 2021 to 12.3%. The main problem for the Spanish economy continues to be the public deficit, whose reduction will be minimal during this period, remaining well above the target. The public debt is also concerning, as it is above 95% of the GDP, causing the price of financing to rise should interest rates become normalized.

Rate of Inflation in Spain Year-on-year change % 1,5

1,5

1,3 1,0

1,1

0,8

0,5

0,4

0,8

0,3

0,4

0,1

Sep

Oct

0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Nov

Dec

Jan 2020

Source: INE (National Statistics Institute)

Unemployment Rate in Spain %

Source: INE (National Statistics Institute)

8 | Market Report 2019-20 Spain and Andorra

Real Estate Sector in Spain

Current Situation

In the context of an economic slowdown after 5 years of consecutive growth, the real estate market showed the first signs of decline in 2019. Data from the National Statistics Institute (INE) register a drop in sales by 3.3% compared to last year, with a total of 501,085 operations completed. Prices have maintained an upward trend, although at lesser intervals than in the last three years. Along with the economic and political uncertainty, the real estate sector was affected last year by the changes implemented to regulate rent and enforce the Real Estate Credit Law. Experts think these factors will cease to have further repercussions in the market once agents become accustomed to the new environment.

Therefore the real estate market foresees a favorable evolution this year, but with regards to prices and sales, the pace of progress will be moderate, and we will also see a progressive adjustment. Historically, the development of the real estate sector paralleled the economic cycle. In the current deceleration phase, we can expect moderate growth in the following years. In any case, analysts see the risk of a real estate bubble given that current prices are still below those reached during the crisis by 20%.

Number of Registered Home Sales In the thousands 518,0

501,1

467,6 405,4 355,6

426,3

408,2

384,4 330,3

278,6

77,0

75,1

83,2

91,7

92,9

2015

2016

2017

2018

2019

New

Used

Seal Estate in Spain | 9

Financing

The interest rates and financial conditions will continue to be favorable for a prolonged period due to policies set forth by the European Central Bank. Experts don’t predict a rise in interest rates during the second half of 2021. In fact, the market is awaiting a revision of the ECB’s monetary policy strategy, predicted to be finalized during the aforementioned period. 2019 was the Euribor’s fourth consecutive year of negative growth, which is not forecasted to rise above 0% within the next two years. Its lowest point was recorded last August to have an average of -0.356%, after which it rose by the end of the year to an average of -0.261%. Taking the last 12 months as a reference, the index registered a drop of -0.132 points. This meant that 30-year mortgages of 150,000 euros, with a Euribor differential of +0.99%, which will need a revision, undersold by 104.64 euros for its annual payment compared to the same month last year, or, in other words, by 8.72 euros a month. By midyear, the Euribor’s slow upward trend could cause mortgages to become more expensive if they are revised, as the rates in 2020 will not be as negative as in 2019.

Last Year’s Euribor 0,00% -0,05% -0,10% -0,15% -0,20% -0,25% -0,30% -0,35% -0,40% -0,45% -0,50%

Source: Bank of Spain

10 | Market Report 2019-20 Spain and Andorra

DIC-19

NOV-19

OCT-19

SEP-19

AGO-19

JUL-19

JUN-19

MAY-19

ABR-19

MAR-19

FEB-19

ENE-19

DIC-18

-0,261%

Financial Position of Spanish Households

Spanish families currently enjoy a healthy economic standing. The net wealth of households, obtained by deducting financial liabilities from total assets, was at 1.57 trillion euros in the third quarter of last year. This figure marks a historical high point, representing a 7.1% increase compared to the same period from the year before. It is equal to 127.4% of Spainâ&#x20AC;&#x2122;s gross domestic product. The ratio between the two amounts shows an increase of 4.1 percentage points against the previous year. According to data from the Bank of Spain, the balance of financial assets from Spanish homes reached 2.33 trillion euros, which is 4.7% more than the previous year. This increase was the result of a net acquisition of 53 billion in financial assets, due primarily to a rise in the price of equity assets. Regarding the GDP, financial assets of Spanish households constituted 189.4% at the end of the third quarter in 2019, an increase of 1.8 points compared to the year before. The bulk of household financial assets was in cash and deposits (39% of the total), followed by equity holdings (27%), pension funds and insurance (17%), and mutual fund shares (14%).

Furthermore, in the third quarter of 2019, according to the National Statistics Institute (INE), the household savings rate was at 6.4%, removing seasonal and calendar effects. This figure is 1.4 points less than in the previous quarter. Spanish households spent more than they earned, and, not including seasonal effects, families in Spain registered savings at -1.3% of their disposable income. Between July and September, household disposable income amounted to 176,055 million euros, a 3.1% increase, while expenditures rose by 2.5% up to 177,132 million.

Household Savings Percentage of Quarterly Gross Disposable Income Corrections of Seasonal and Calendar Effects

15 12,1

10,7

8,9

5,3

6,2

4,3

7,0 5,4

6,4

On the other hand, household debt stood at 708,499 million between July and September 2019, in line with what was recorded in the same period in 2018. This level of debt accounts for 57.4% of the GDP, a long way from the 85% registered in 2010.

-5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: INE (National Statistics Institute)

Property Ownership of Spanish Families (Data in a million of millions of euros) 8 7 6

5,463

5 4 3 1,57

2 1 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net Financial Wealth

Real Estate Wealth

Source: Engel & VĂślkers with information from the Bank of Spain and Inverco

Seal Estate in Spain | 11

Price Development

In line with a curbed demand, last year’s prices saw a moderated growth. The appraised price of free housing in 2019 amounted to 1,653 euros/sqm, constituting a 2.1% increase, the slowest growth rate registered in the last three years, according to data from the Ministry of Transport, Mobility and Urban Agenda. This amount is the highest seen since the last quarter of 2011, but it is also slightly more than 20% lower than the maximum reached in 2008, when the real estate boom was in full swing. The regions which registered the greatest increase in prices were the Balearic Islands (6.7%), Navarre (6.1%) and Madrid (4.9%), whereas the largest decrease took place in Cantabria (-2.2%), La Rioja (-1.9%), Extremadura (-1.2%), Asturias (-0.5%), Murcia (-0.3%), and Castilla La Mancha (-0.2%). By province, again the Balearic Islands, Navarre and Madrid showed the most growth, along with Valencia (4.1%), Las Palmas (3.8%) and Biscay (3.5%). The largest decrease by province took place in Soria (-8.7%), Palencia (-7.8%), Lleida and Cáceres (both by -2.8%) and Albacete (-2.6%). Regarding municipalities with more than 25,000 inhabitants, the highest prices were seen in San Sebastián, Ibiza and Santa Eulalia del Río (Ibiza), all of which were above 3,700 euros/sqm. In turn, the latest available data from the INE's Housing Price Index (HPI) (which refers to house purchases) corresponding to the third quarter of 2019 showed an annual increase of 4.7%, six tenths less than in the previous quarter and the lowest annual percentage in the last three years. By type of housing, both the annual rates for new and second-hand housing decreased six tenths as compared with the previous quarter, standing at 6.6% and 4.4%, respectively.

12 | Market Report 2019-20 Spain and Andorra

The 10 most expensive municipalities in Spain (euros/sqm) San Sebastián

3.811,1

Ibiza

3.809,9

Santa Eulalia del Río

3.711,5

Sant Cugat del Vallès

3.474,6

Barcelona

3.387,4

Madrid

3.332,9

Pozuelo de Alarcón

3.322,1

Castelldefels

3.191,7

Calvià

3.126,4

Majadahonda

3.033,3

Source: Ministry of Development

IPV Annual Rate General index, new and second-hand property. Percentage

10,4

8,0 7,2

7,0 6,3

6,8

5,7

6,1

5,7

6,6

6,8

6,4

6,2

7,2 6,6 5,3 4,7 5,0 4,4

T2 2019

2018 General Index

New-builds

Second-hand

Source: INE (National Statistics Institute)

Experts point out that both prices and sales should see a decline in the following years, but without dropping by a significant amount except in certain urban centres with

overvalued housing markets. One forecast is based on the fact that price levels, indebtedness, and the financial effort of Spanish families, are still moderate.

Average property price per square metre (â&#x201A;Ź/sqm) 2.200 2.000 1.800 1.600 1.400

T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4

1.200 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: The Ministry of Development

Seal Estate in Spain | 13

Mortgages and Purchases

The new Mortgage Law that came into force last June marked an important development in mortgages in 2019. The effects of the law were felt in August and September even as the market returned to normal. In fact, the number of home mortgages transacted shot up by 43%, reaching 30,285 in the last month of the year, according to the provisional figures from the National Statistics Institute (INE). This means that a total of 357,720 home mortgages were secured during the last period, a 2.7% increase compared to 2018. The increase was the lowest seen since 2014, although this is the sixth consecutive year of growth and the best annual turnout since 2011.

The average value of signed mortgages amounted to 125,007 euros, 0.6% more than in 2018, while capital loans from financial institutions reached 44,717 million euros, a 3.3% increase. The communities with the highest number of home mortgages in 2019 were in the Community of Madrid (69,616), Andalusia (67,845) and Catalonia (57,787). The most amount of loans were given in these communities for mortgages. Fixed-term mortgages are gaining ground. In December they constituted 44% of all mortgages compared to 41.4% in the same period of the year before. The average rate of interest for mortgages at the end of last year was 2.20% for variable rates (a 9.1% decrease), and 3.06% for fixed rates (a 2.6% increase). For their part, the Association of Property Registrars shows that the average contract period of mortgages is 279 months (23 years and three months), a decrease of about 2.11%. The average monthly mortgage payment in the fourth quarter of 2019 was 604.09 euros. The effort made by Spanish households to pay off their mortgages and interest rates reached around 31% of their disposable income, which is lower than what was seen in 2008, when it amounted to over 50%. The highest average of monthly mortgage payments were registered in the Balearic Islands (924.04 euros), the Community of Madrid (876.69 euros) and the Basque Country (636.24 euros).

Registered Home Mortgages 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 2006

2007

2008

2009

Source: INE (National Statistics Institute)

14 | Market Report 2019-20 Spain and Andorra

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

After five years of growth, the buying and selling of homes declined last period by 3.3% to 501,085 purchases, according to the INE. This decline is due to the contracting of second-hand flats, which fell by 4.2%, while sales of new homes increased by 1.2% to a total of 92,844, thus accumulating three consecutive years of growth. All in all, the 2019 sales figure is the fourth best in the last 13 years.

Registered property sales based on the buyer’s nationality Year 2019 Nationalities

Here are the percentages by autonomous community: Castilla La Mancha (7.5%), Extremadura (5.7 %) and La Rioja (3,1 %) registered the highest increase in buying and selling, whereas the most pronounced decline was seen in the Canary Islands (-14 %), the Balearic Islands (-10,9 %), and Navarre Navarra (-9,7 %). Andalucía was the region with the highest number of homes bought and sold (100.339 transactions), followed by Catalonia (79,751), the Valencian Community (74,910) and Madrid (70,835). The latest figures for the third quarter of 2019, taken from the Ministry of Development, show a drop in buying and selling by 4% to a total of 411,234 homes sold.

% Foreigners

United Kingdom

1,74

13,94

France

0,98

7,85

Germany

0,89

7,12

Morocco

0,77

6,17

Belgium

0,73

5,83

Romania

0,73

5,87

Italy

0,64

5,13

Sweden

0,56

4,48

China

0,49

3,97

Russia

0,40

3,20

Holand

0,34

2,74

Norway

0,23

1,87

Polond

0,20

1,63

Ukraine

0,19

1,56

Algeria

0,18

1,43

Ireland

0,16

1,30

Bulgaria

0,14

1,12

Denmark

0,12

0,96

Switzerland

0,11

0,87

Other

2,86

22,96

Foreigners

12,45%

100,00%

Nationalities

87,55%

TOTAL

100,00%

Source: Spanish Association of Registrar

Property Purchase by Autonomous Communities Andalusia

-1,1 %

Cataonia

-2,4 %

Valencian Community

-4,9 %

Community of Madrid

-7,5 %

Canary Islands

National Total

-14 %

Castile and León

0,5 %

Castilla-La Mancha

7,5 %

Basque Country

2014 347.170 2015 383.107 2016 436.574 2017 509.847 2018 410.883 2019 501.085

-3,3 %

Galicia

2,5 %

Region of Murcia

1,2 %

Balearic Islands

-10,9 %

Aragon

-0,3 %

Principality ofAsturias Extremadura Cantabria Chartered Community of Navarre La Rioja 0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000 100.000

Source: INE (National Statistics Institute)

Seal Estate in Spain | 15

16 | Market Report 2019-20 Spain and Andorra

Spanish Residential Market 18

COMMUNITY OF MADRID Madrid Surroundings

CATALONIA Barcelona Surroundings Costa Brava Tarragona Cerdanya

VALENCIAN COMMUNITY Valencia Castellón Alicante - Costa Blanca

ANDALUSIA Costa del Sol

NORTHEAST REGION IN SPAIN Galicia Asturias Castile and León

102

NORTHERN REGION IN SPAIN Basque Country Navarre

112

CANARY ISLANDS Tenerife

116

BALEARIC ISLANDS Mallorca Menorca Ibiza

122

NEW BUILDS

Real Estate Market Trend Residencial Español | 17

Community of Madrid

Madrid

3.226.126

38.224 €

30.094 €

3.732 €/m²

+1,3 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The Spanish capital is the leader in attracting foreign investments in the country. Madrid ranks as the fourth most attractive destination in Europe for investing in real estate, according to Emerging Trends in Real Estate Europe in 2019 by ULI and PwC. One of every five companies created in Spain has their offices in Madrid, and 72% of the 2,000 main Spanish companies have their head offices in the city.

experienced strong increases. Despite their upward trend, prices are still far from the highest point recorded in 2007, about 33% below.

The entry into force of the new mortgage law along with the moderation of economic growth have altered the demand for homes in the whole country. In Madrid, while the real estate market remains strong with pen-

Madrid also holds the greatest amount of home mortgage debt, reaching a sum of 202,426 euros / sqm. Its longest average for periods of new mortgage contracts was 307 months, 25 years and 7 months. The region

ding urban developments such as Madrid Nuevo Norte (The New North Madrid), or the Programa de Actuación Urbanística (Urban Action Program) in southeast Madrid. In the third quarter of 2019, housing sales in the Community of Madrid reached 17,427 units, a decrease by 3.57% compared to the same quarter the year before, according to data from the Spanish property registry.

also holds the highest monthly mortgage rates, with an average of 873.90 euros in the middle of last year.

Prices maintained some stability over the past year, with increases of less than 5%. Forecasts from Engel & Völkers point to sustainable growth throughout 2020 with similar spikes in areas where there is still room for improvement and a correction in those that have

According to Tinsa, the average gross return on a home for rent in the capital stands at 4.4%, although this percentage varies considerably depending on the district.

18 | Market Report 2019-20 Spain and Andorra

The Community of Madrid registers the highest bank debt per square metre in the country. According to the Spanish Association of Property Registrars, the debt reached 1,985 euros / sqm in the third quarter of 2019.

With regards to the average time to sell a property, the figure has fallen over the last four years from an average of 6.4 months required to sell a property to 3.6 months at present. This figure is well below the 8.2 months that Tinsa has on average in Spain.

Districts in the City of Madrid

Fuencarral - El Pardo

Hortaleza

Barajas Tetuán Moncloa Aravaca

Chamartín Chamberí Salamanca Centro

Retiro

San Blas Ciudad Lineal Moratalaz

Arganzuela Vicálvaro

Puente de Vallecas

Latina Carabanchel

Usera

Villa de Vallecas Villaverde

Prices in euros / sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

Salamanca

6.370

Hortaleza

3.800

Carabanchel

2.825

Retiro

5.150

Moncloa - Aravaca

3.660

Villa de Vallecas

2.430

Centro

5.105

Arganzuela

3.585

Usera

2.170

Chamberí

5.095

Barajas

3.350

Moratalaz

2.040

Chamartín

4.725

San Blas

3.095

Puente de Vallecas

1.895

Ciudad Lineal

3.905

Latina

3.035

Vicálvaro

1.645

Tetuán

3.895

Fuencarral - El Pardo

2.960

Real Estate Market Trend · Community of Madrid | 19

District by district

Centro and Arganzuela

The urban planning modifications carried out in the central district were decisive for the significant increase in prices recorded in previous years. The expectation created by the Canalejas complex and the pedestrianization of the Gran Vía boosted the average price of the district to 5,170 euros / sqm at the close of 2018. Since then the price fell by 1.3% in 2019 to around 5,100 euros / sqm. The neighborhoods closest to these projects—Sol and Universidad—is where a small decline was seen in the last year, whereas in other areas, such as Palacio and Justicia, we saw a slight increase in prices of secondhand homes. The housing typology in highest demand are apartments with more than two rooms, and a surface area between 80 and 150 sqm. Spanish clients constitute 68% of purchases compared to 32% of foreigners, among which the majority are from Venezuela, France, Italy, the US, England and China. Looking at purchases according to the client’s nationality helps determine their motives. 50% of them seek a primary residence, 40% are making an investment, and only 10% of the purchases are for a second residence. In Arganzuela, buyers tend to be Spanish families, constituting 90% of all transactions. Among the 10% of foreign clients, it is worth pointing out that the Chinese clients comprise the majority.

20 | Market Report 2019-20 Spain and Andorra

Palos de Moguer and Acacias are the neighborhoods in highest demand, along with the residential area known as Metales, where most flat complexes are new gated housing projects offering community spaces such as pools and gardens. Younger clients still prefer the area closest to the Matadero because it is well connected and offers a variety of services.

Property Prices inCentro and Arganzuela (Data in euros / sqm)

Minimum

Maximum

Average

Justicia

4.496

7.826

5.524

Cortes

4.324

6.915

5.261

Embajadores

3.089

5.123

4.082

Universidad

3.825

5.783

4.529

Palacio

4.102

6.520

4.901

Sol

4.493

4.500

4.400

Acacias

4.100

5.090

4.595

Palos de Moguer

3.125

4.529

4.017

Latina

2.938

3.692

3.034

Carabanchel

2.400

2.934

2.826

Retiro

Salamanca

In 2019, the average price of the six neighborhoods comprising the Retiro district, surpassed 4,000 euros / sqm. The top two were Jerónimos and Ibiza, both of them in high demand due to their excellent location in front of the capital’s most iconic park.

The 20.000 euros / sqm reached in the most exclusive areas of the district highlight both the buyer profile and the desired housing typology, in two of the most characteristic neighborhoods in Salamanca: Recoletos and Castellana. Capacious and luxurious homes whose operations are carried out by Spanish families and foreigners, both with high purchasing power, in a ratio of 60% to 40%, respectively. However, other neighborhoods in the district, such as Guindalera, offer more affordable prices, with an average of about 4.440 euros / sqm. These neighborhoods join the revival which Fuente del Berro already experienced in previous periods.

The buyer profile in 2019 became more international. If in 2018, the ratio of clients was 90% Spanish and 10% foreign, in 2019, we found that 70% of the buyers to be Spanish, and 30% international, the majority of which came from Mexico.

After the surge of Venezuelans buying property in the district for the past few years, in 2019 we saw that they’re now the main people doing the selling. Mexicans continue to purchase homes with a surface area of around 120 sqm.

The stately street known as Alfonso XII is the main artery of the Jerónimos neighborhood, and it continues to be preferred by foreigners with a high purchasing power, who seek houses with an area larger than 200 sqm, in classical buildings. Meanwhile, wealthy Spanish families opt for the neighborhoods Ibiza and Niño Jesús. Property Prices in Retiro

Property Prices in Salamanca

(Data in euros / sqm)

Minimum

Maximum

Average

Minimum

Maximum

Average

Jerónimos

4.750

9.580

7.520

Goya

3.740

8.155

6.300

Ibiza

5.470

6.521

5.890

Lista

3.378

7.745

6.299

Pacífico

3.900

4.280

4.120

Castellana

4.360

21.420

7.664

Niño Jesús

4.543

4.831

4.687

Recoletos

4.575

23.850

8.959

Adelfas

3.909

4.347

4.189

Guindalera

2.480

6.580

4.441

Estrella

3.697

4.472

4.136

Fuente del Berro

2.170

9.400

4.545

Real Estate Market Trend · Community of Madrid | 21

Chamartín

Chamberí

Homes of around 145 square metres distributed among three bedrooms are typically in high demand in the city’s financial district. 80% of all purchases are carried out by Spanish clients compared to the 20% by foreigners. Of the latter, last year we saw a notable rise in transactions involving Mexicans and North Americans.

In 2019 we saw a drop in prices by around 2% with a volume of operations similar to the previous period. It is worth pointing out that most sales were made for properties under a million euros. 85% of the purchases were carried out by Spaniards looking for 145 sqm homes, with three bedrooms, preferably penthouses. 60% of the buyers financed their homes with mortgages compared to 40% using their own resources. 15% of the international clients, made up of primarily Venezuelans, French, Belgians, and Mexicans, sought remodeled properties in classical buildings at prime locations like Almagro, Trafalgar and Ríos Rosas.

Buyers mainly look for a main residence 84% of the time, which they acquire using their own resources and through financing. Then a meager 8% of the purchases are for investment purposes, and another 8% of buyers seek a second residence.

Of these three aforementioned neighborhoods, the second and third have become the most highly demanded due to their slightly greater degree of affordability in comparison to the first. Therefore, the average price in Almagro surpasses 5,500 euros / sqm, while Trafalgar and Ríos Rosas remain beneath this figure, with a difference of little more than the 4,000 euros / sqm charged in Vallehermoso.

Property Prices in Chamberí (Data in euros / sqm)

Due to the excellent ratio of quality to price found in the properties, this district boasts some of the most coveted residential areas in the city centre, such as El Viso, Nueva España, and Hispanoamérica.

Property Prices in Chamartín (Data in euros / sqm)

Minimum

Maximum

Average

Viso

2.889

7.417

5.273

Nueva España

2.941

5.548

4.652

Hispanoamérica

3.596

6.898

4.694

Castilla

2.800

5.618

4.711

Prosperidad

1.335

5.309

4.452

Ciudad Jardín

3.800

5.206

4.591

22 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Almagro

4.095

7.100

5.598

Trafalgar

3.352

5.120

4.236

Ríos Rosas

3.215

5.210

4.213

Arapiles

3.021

5.500

4.261

Gaztambide

3.410

5.212

4.311

Vallehermoso

3.220

5.115

4.168

Argüelles /Moncloa

2.825

5.520

4.173

Tetuán

Fuencarral

In the adjacent district known as Tetuan, Cuatro Caminos is the area claiming the highest demand. It is in fact quite similar to Castillejos in both the type of properties offered and the price range.

The residential neighborhoods comprising Madrid’s northeast region, are in great demand by families interested in spacious homes with an area greater than 120 sqm distributed among at least three bedrooms. However, the type of property varies according to the nationality of the client. While Spaniards prefer flats, foreigners seek either terraced or single-family homes.

Then you have Valdeacederas, Almenara and Berruguete undergoing a rising trend due to their proximity to the Caleido Tower, Madrid’s fifth skyscraper. Their average price stands below 3,300-3,500 euros / sqm. The housing typology in highest demand is a flat with three bedrooms distributed over an area of 180 sqm. These flats are usually financed with a mortgage and purchased to be used as primary residences.

Property Prices in Tetuán (Data in euros / sqm)

Minimum

Maximum

Average

Cuatro Caminos

5.800

3.200

4.500

Castillejos

5.800

3.200

4.500

Bellas Vistas

4.100

2.900

3.500

Valdeacederas

4.400

2.700

3.550

Almenara

4.500

2.100

3.300

Berruguete

4.300

2.300

3.300

We have seen a lot of foreigners joining the common buyer purchasing in Mirasierra, most of whom are Germans who’ve moved to Madrid since the German College was established in Montecarmelo. Fuencarral is a young district which, aside from its German community, attracts families with children that are younger than in areas such as Mirasierra, Fuentelarreina or the neighborhood known as El Pilar. Peñagrande is also a good option for the young buyer, especially after the major renovation carried out, so that it now offers terraced and single-family units at affordable prices.

Property Prices in Fuencarral (Data in euros / sqm)

Minimum

Maximum

Average

Mirasierra

2.650

4.259

2.960

Montecarmelo

3.351

4.606

4.192

Peñagrande

2.261

4.500

3.380

Fuentelarreina

2.727

3.292

3.000

La Paz

2.600

4.600

3.600

El Pilar

2.200

4.200

3.200

Real Estate Market Trend · Community of Madrid | 23

Moncloa - Aravaca

Even though Spaniard comprise 85% of all purchases, more and more clients buying in this district are international. Of the remaining 15% who are international buyers, the main nationalities we find are Venezuelans, Mexicans, and a growing presence of French and Belgians in Moncloa-Arguelles, along with some Chinese.

In Aravaca and in the housing project called El Plantío, maximum prices have remained at around 7,800 euros / sqm, although a slight decline in the average price has been registered in purchases.

Property Prices in Moncloa - Aravaca

The kind of property preferred by all of them are ample homes with four bedrooms, in flats with more than 150 sqm of surface area, or detached houses of around 300 sqm. Specifically in the prestigious area known as Puerta de Hierro, Spanish families tend to prefer flats, whereas foreigners opt for semi-detached, terraced, and single-family units. Argüelles holds its status as the most premium area in Moncloa, with prices reaching 6,000 euros / sqm. It is located by the emblematic places like Parque del Oeste and Temple of Debod.

24 | Market Report 2019-20 Spain and Andorra

(Data in euros / sqm)

Minimum

Maximum

Average

Argüelles

3.532

6.109

4.815

Ciudad Universitaria

2.856

3.225

3.041

Valdemarín

2.091

7.375

4.465

Aravaca

1.803

7.754

3.790

El Plantío – La Florida

1.250

7.800

2.693

Puerta de Hierro

1.751

3.785

2.900

Ciudad Lineal

Hortaleza

Although It is one of the largest in Madrid, a unique feature is that the entire district is structured around one street: Arturo Soria, the main artery running through several highly different areas.

Hortaleza is a very extensive district to the west of Madrid, in which you can see numerous contrasts between the types of homes and the profiles of investors. With prime areas like Piovera, where you find extremely high-quality buildings and excellent services, you also get affordable prices in neighborhoods like Santiago Apóstol.

In the northern area you can find neighborhoods resisting depreciation, such as Costillares, Atalaya, Colina and San Pascual, where the average price stands at around 4,000 euros / sqm. While during the crisis in the previous decade, these areas took the longest to suffer from lowering prices, they were also the first to go up during the recovery. Quintana, Ventas and Pueblo Nuevo are located in the southern area, where average prices approach around 2,000 euros / sqm, with the neighborhood Concepción representing the intermediate area with regards to both price and the type of property. In 2019 Ciudad Lineal experienced a large volume of sales whose average prices have stayed the same in an environment of light decline. The properties built are of high quality and the setting’s abundance of trees and green spaces make Ciudad Lineal one of the most interesting areas in Madrid for investment.

Property Prices in Ciudad Lineal (Data in euros / sqm)

Minimum

Maximum

Average

Costillares

2.575

5.200

3.888

Atalaya

3.557

4.700

4.129

Colina

2.200

5.417

3.809

San Juan Bautista

3.302

4.117

3.710

San Pascual

2.300

5.123

3.712

Concepción

2.412

4.720

3.566

Quintana

1.923

3.321

2.622

Ventas

1.258

3.050

2.154

Pueblo Nuevo

1.850

2.520

2.185

Palomas represents one of the most valued areas in the district. Its prices are more moderate than in Piovera, but with high quality homes. For their part, Canillas, Pinar del Rey and Santiago Apóstol are attractive neighborhoods to investors. You can find excellent well-connected flats to rent out, which allow high returns within the surrounding M-40 freeway.

Property Prices in Hortaleza (Data in euros / sqm)

Minimum

Maximum

Average

Palomas

2.894

4.211

3.553

Piovera

4.125

5.003

4.564

Canillas

2.895

3.189

3.042

Pinar del Rey

2.256

2.784

2.520

Santiago Apóstol

2.199

2.687

2.443

Real Estate Market Trend · Community of Madrid | 25

Sanchinarro, Las Tablas and Valdebebas

Located in the north of Madrid, these districts are largely comprised of family residential neighborhoods. The constant growth and high demand kept prices on the rise in 2019, with Sanchinarro at the top, where the average cost has climbed by 8% compared to 2018, surpassing 4,000 euros / sqm. The most sought-after areas in Sanchinarro are closest to El Corte Inglés mall and to the Sanitas Hospital in La Moraleja. The preferred neighborhoods in Las Tablas are closest to the BBVA and Telefónica offices. The demand is not as high in Valdebebas since it is still undergoing development.

Barajas - San Blas

Located near Madrid’s airport, these districts offer average prices at around 3,000 euros, although the costs can range considerably due to the wide variety of properties offered. Alameda-Barajas are not neighborhoods well-known by the general public. However, the average price is relatively high compared to similar areas. This is due to their high demand by people who already reside there, who value their tranquility, the ample green spaces and superb public transport. San Blas is a relatively popular district, whose interesting development has future prospects. Despite its location outside of the M-30 freeway, the fact that it is right on the border makes it attractive, especially with regards to neighborhoods like El Salvador, where you can find some outstanding properties, mainly in Rosas and Simancas.

Since these residential neighborhoods are primarily inhabited by young Spanish families, the properties in highest demand have three bedrooms. In Sanchinarro and Las Tablas, properties are distributed throughout a surface area ranging between 100 and 130 sqm, and up to 120150 sqm in Valdebebas. About 90% of purchased homes are used as main residences, while the remaining 10% is for investors. Most

From an investment point of view, Rejas offers a great opportunity in east Madrid. Improvements planned for public transport in the area promise an upcoming revaluation.

Property Prices in Barajas - San Blas (Data in euros / sqm)

Minimum

Maximum

Average

Aeropuerto

1.586

1.854

1.720

Alameda de Osuna

3.340

3.485

3.413

Corralejos

1.420

5.000

3.210

Casco Antiguo Barajas

1.827

3.729

2.778

Timón

2.027

3.756

2.892

Rejas

2.260

3.286

2.773

Sanchinarro - Las Tablas - Valdebebas

Salvador

3.041

3.272

3.157

(Data in euros / sqm)

Simancas

2.090

2.373

2.232

clients require financing, although that has seen a decline throughout this year, and 10% of the buyers made their purchase using their own funds, as opposed to the 5% who did the same in 2018. Property Prices in

Minimum

Maximum

Average

Sanchinarro

3.495

4.419

4.110

Las Tablas

3.360

4.270

4.027

Valdebebas

3.560

4.530

4.320

26 | Market Report 2019-20 Spain and Andorra

Rentals

What makes rent attractive as a vehicle for investment, mainly in the context of alternative assets with reduced profitability, is the remarkable dynamism of Madrid’s market. This situation caused an upward trend in prices in the last few years, but in 2019, the trend came to a halt in districts with the highest demand. In the city as a whole, the average price has risen by 5% to 16.4 euros / sqm, even though in the most popular districts such as Centro, Salamanca, and Chamberí, a slight decline was registered, whereas in areas like Moncloa or Chamartín, the increase reached around 6%. In 2019, the most in-demand home was an apartment with a surface area of 80-100 sqm, with two bedrooms, two bathrooms, and a good location.

Price of rent in Madrid by districts (Data in euros / sqm)

Minimum

Maximum

Average

18,7

Salamanca

8,5

19,4

Chamartin

8,9

37,5

16,5

Chamberi

18,2

Moncloa

6,87

24,8

Hortaleza

5,5

23,1

12,4

Tetuán

9,25

26,7

Retiro

9,1

16,6

Noroeste

3,6

24,37

10,38

Norte

3,4

12,09

Centro

Engel & Völkers increased its leasing transactions by 20% in the city of Madrid in 2019, a trend they hope to continue for the rest of the year.

Real Estate Market Trend · Community of Madrid | 27

Madrid’s Surroundings

Algete (Zona Norte)

San Sebastián de los Reyes (Zona Norte) Las Rozas

Cobeña (Zona Norte)

La Moraleja Paracuellos (Zona Norte)

Majadahonda

Boadilla del Monte

Madrid Pozuelo

Pozuelo - Boadilla del Monte Las Rozas - Majadahonda La Moraleja Zona Norte

28 | Market Report 2019-20 Spain and Andorra

Madrid’s Surroundings

Pozuelo - Boadilla del Monte

Pozuelo de Alarcón and Boadilla del Monte remain the municipalities with over 20,000 inhabitants and the highest average of annual income per capita in Spain. The first of the two, with an income of 25,957 euros per inhabitant, is divided in two well-differentiated parts: La Estación and Pueblo, two areas holding the bulk of the district's services, and both surrounded by exclusive housing communities. Some of these communities, such as Somosaguas, Montealina, Monte Gancedo, or Monteclaro, are in high demand by Spanish families, who constitute 85% of the purchases compared to 15% of foreigners. Throughout 2019, prices in the municipal centre showed a notable increase, while the northern area and the Estación maintained their maximum rates at 7,000 and 8,500 euros / sqm.

Property Prices in Pozuelo de Alarcón (Data in euros / sqm)

Minimum

Maximum

Average

Pozuelo Pueblo

1.786

4.853

3.320

Pozuelo Norte

1.800

7.353

3.033

Pozuelo Estacion

2.250

3.800

3.025

Avenida de Europa

1.971

5.611

3.790

Montealina

1.629

4.000

2.531

Prado Largo

1.267

5.000

2.636

Monteclaro

1.513

4.250

3.121

Somosaguas

1.257

12.667

3.196

Prado de Somosaguas

2.130

5.236

3.295

La Finca

1.708

8.264

3.672

Real Estate Market Trend · Community of Madrid | 29

In 2019, the average housing price in Pozuelo de Alarcón stood at 3,155 euros / sqm, while in Boadilla del Monte it stood at 2.416 euros / sqm, and in Villaviciosa de Odón, at 1.977 euros / sqm, with an increase between 5% and 10%. The housing typology in Pozuelo can be divided into two categories: flats between 150 and 200 sqm distributed among four bedrooms, and spacious detached houses in green areas. The first one you find in Boadilla del Monte and Villaviciosa de Odón, where you have in-demand housing projects such as Valdecabañas and Montepríncipe. The second category you have in El Bosque, where houses have surface areas between 400 and 500 sqm distributed throughout more than 5 bedrooms.

Property Prices in Boadilla del Monte (Data in euros / sqm)

Minimum

Maximum

Average

Monteprincipe

1.220

4.087

2.278

Valdepastores - Las Encinas

1.013

6.977

2.391

Bonanza

1.100

3.246

2.015

El Olivar

1.301

3.160

2.043

781

4.200

2.154

Sector S

1.730

3.400

2.568

Sector B

1.800

3.990

2.965

Centro

1.925

3.681

2.508

903

3.385

1.881

Las Lomas

Parque Boadilla

Property Prices in Villaviciosa de Odón (Data in euros / sqm)

Minimum

Maximum

Average

El Bosque

877

3.780

1.821

Centro

566

4.980

2.477

1.014

3.798

1.781

Castillo - Campodon

30 | Market Report 2019-20 Spain and Andorra

Las Rozas - Majadahonda

Las Rozas de Madrid is the third municipality in Spain whose population of over 20,000 people has the highest income per inhabitant, according to the Urban Indicators, published by the INE in 2019. It presents a buyer’s profile similar to Majadahonda, Villafranca del Castillo and Villanueva del Pardillo. In Las Rozas and Majadahonda, Spanish families primarily demand penthouse flats and apartments in the central area, with a surface area of around 120 sqm, and three or four bedrooms. Regarding foreigners, buyers from South America comprise 20% of all purchases in the area, with a clear preference for capacious stand alone houses.

Property Prices in Las Rozas (Data in euros / sqm)

Minimum

Maximum

Average

1.200

4.300

2.750

Molino de la Hoz

940

3.700

1.800

Pinar - Punta Galea

900

3.500

1.870

Club de Golf

750

3.500

1.850

La Marazuela

960

4.000

2.450

El Burgo - Abajón

1.650

4.800

2.650

El Cantizal

1.700

4.100

2.900

Monte Rozas

750

3.300

1.950

Las Matas - Peñascales

750

3.500

1.900

Centro

The rising prices observed in all of the areas in Majadahonda, is proof that the municipality is one of the most desirable locations in the northeast of the capital.

Property Prices in Majadahonda - Villafranca del Castillo - Villanueva del Pardillo (Data in euros / sqm)

Minimum

Maximum

Average

Monte del Pilar

1.550

5.200

3.350

Centro

1.500

4.200

3.000

Golf - Carralero

2.300

5.400

3.500

Norte

1.450

4.800

2.900

Carretra del Plantío

1.200

4.800

2.760

Villafranca del Castillo

700

3.200

1.800

Villanueva del Pardillo

765

3.350

2.065

Real Estate Market Trend · Community of Madrid | 31

La Moraleja

To the north of Madrid you find one of the most prestigious districts in the capital. It is composed of three residential areas: La Moraleja, El Soto de la Moraleja, and Encinar de los Reyes. They are close to Arroyo de la Vega, where the offices of various multinacionals are located. You can find two golf courses, tennis clubs, healthcare and shopping centres, along with the highest number of private and international schools in the entire country. The properties in highest demand are located in El Soto and El encinar, and they are either terraced or semi-detached housing with a garden, and a surface area of more than 250sqm distributed throughout four or five bedrooms. These housing types change to 500 sqm stand-alone homes in enclosed residential communities, when it comes to clients seeking homes in La Moraleja. That said, the average price in La Moraleja, in euros per square metre, is not elevated for two reasons. First, there are properties set for demolition, so they are valued only for the land. Second, large sized homes actually lower the value of euros to square metre. We see a wide range of prices according to the residential area, and even the street.

32 | Market Report 2019-20 Spain and Andorra

Regarding Arroyo de la Vega, where the average price stands at 3,500 euros / sqm and the maximum price does no reach 5.000 euros / sqm, the most demanded type of housing is a flat with 180 sqm of surface area, four bedrooms, plus a balcony or garden. The buyer profile tends to be Spanish or foreign families, among which we find an increase of older married couples whose children have grown up and live on their own.

Property Prices in La Moraleja (Data in euros / sqm)

Minimum

Maximum

Average

El Soto de la Moraleja

3.000

6.000

3.857

Encinar de los Reyes

3.953

6.839

4.577

La Moraleja

2.654

7.000

4.300

Arroyo de la Vega

2.212

4.900

3.500

Northern Region

In the region furthest to the north of the capital, you can find a variety of residential areas. Going beyond the La Moraleja, we come across attractive modern municipalities like San Sebastián de los Reyes, which is in full expansion. It is well-connected, and increasingly desired by young families, due to more affordable prices when compared to its neighbor, Alcobendas. San Agustín de Guadalix has become a favorite destination for Madrileños wanting to purchase a second home. Aside from the area’s excellent stock of single-family detached homes, and its proximity to the nearby mountain range, the flats offer affordable prices, making the properties an attractive investment to accommodate the large number of people who work at companies in the region. Tres Cantos is a young, 35 year old modern city offering a wide variety of flats, terraced housing and single-family units, where Soto de Viñuelas claims the highest standards. The fact that it is so well-connected to Madrid makes it desirable for many families, although its rising prices are directing the interest of potential buyers towards Colmenar Viejo. Around the National I freeway, we can find characteristic residential areas such as Fuente del Fresno, Ciudalcampo and Santo Domingo. Its single-family houses of

high standing, built in the 70s and 80s on large plots of land, offer an excellent choice because of their affordable prices, as opposed to the more modern homes in the area. Lastly, we have the area known as Paracuellos del Jarama. At the beginning of the century it saw significant growth, making it a modern town that is well-organized and equipped with high-quality properties, popular among those who work at the airport and at industrial companies nearby.

Housing price in the northern region of Madrid (Data in euros / sqm)

Minimum

Maximum

Average

San Sebastián de los Reyes

1.250

4.125

2.688

San Agustín de Guadalix

1.589

2.075

1.832

Fuente del Fresno, Ciudalcampo, Santo Domingo

1.798

2.595

2.197

720

3.197

1.959

Tres Cantos

2.150

2.895

2.523

Colmenar Viejo

1.351

1.846

1.599

Paracuellos del Jarama

Real Estate Market Trend · Community of Madrid | 33

Catalonia

Barcelona

1.636.762

37.124 €

29.199 €

4.390 €/m²

-4 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

In 2019, the housing market in Barcelona underwent two different stages. The first one, which took place between January and May, saw a slight increase in prices and transactions. The second, between June and December, saw both variables drop considerably. The outcome at the end of the year was negative, with a decline in sales volume of new homes by 7% and 4% in second-hand homes. Economic, legal and political factors marked the difference between both stages. On the one hand, the demand shrank. Many families saw the economic slowdown as a sign that another crisis was underway. They decided to postpone acquiring a new home and save their money instead. On the other hand, the new mortgage laws in Spain came into full effect in June and July, causing a large decline in real estate transactions, although the decrease was temporary. In Barcelona, an analysis by district allows us to separate them according to price changes. The following districts registered an increase in costs: Nou Barris, Sant Andreu, Gràcia, Sant Martí y Horta-Guinardó. Then you have districts that registered a decline: SarriàSant Gervasi, Les Corts, Eixample, Ciutat Vella and Sants-Montjuïc.

34 | Market Report 2019-20 Spain and Andorra

The trend in the outskirts was quite different. Despite its unattractive setting, prices and transactions saw a good increase. Sales costs climbed by 8%, standing at 2,170 euros / sqm. The rental market in Barcelona remained stable, with prices staying at 17.7 euros / sqm. This amount does not include renewed contracts, only new rental agreements. Different trends unfolded. Expensive flats saw their prices get lower, as a consequence of all the tenants with more purchasing power choosing to stop renting and start buying. Meanwhile, cheaper flats became a bit more expensive because of their growing demand. In the outer area, rent rates rose by 2% to an average price of 10.8 euros / sqm. In 2020, the price for both new and second-hand homes will continue its decline in Barcelona, whereas in the rental market, we will see a changing trend. Prices will undergo a slight decrease in both the capital and the surrounding neighborhoods. The main reason will be that young families switch from renting to buying. This change is owed to the significant raise in salaries seen in 2019 and 2020, along with a greater willingness on behalf of banks willing to concede loans and lower monthly costs, setting the mortgage rate at a similar amount as rent.

Districts of Barcelona

Horta-Guinardó Sarrià-Sant Gervasi

Nou Barris

Les Corts Sant Andreu

Gràcia

Eixample Eixample Dreta Sant Martí Ciutat Vella Sants-Montjuïc

Prices in euros / sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

Sarrià-Sant Gervasi

5.010

Sant Martí

4.170

Horta-Guinardó

3.020

Les Corts

4.890

Ciutat Vella

4.085

Sant Andreu

2.900

Eixample

4.750

Sants-Montjuïc

3.790

Nou Barris

2.620

Gràcia

4.300

Real Estate Market Trend · Catalonia | 35

Barcelona by district

Ciutat Vella

Barcelona’s “old city”, encompasses the historical centre of the city, which includes neighborhoods such as Raval, the Gothic Quarter, Born and the seaside area, the Barceloneta. The unique character of the Ciutat Vella has maintained the demand for homes in the area, primarily by international clients, whose presence has grown. In 2019, 62% of clients buying through Engel & Völkers, were foreign. That is four points more than in 2018. Of this percentage, 28.3% are French, 15% are Italian, and 9.4% are German. The common denominator among all of them is their preference for old historical buildings that conserve some of their original elements, with hydraulic flooring and traditional Catalan “volta” ceilings. The most highly demanded property in the district has between 60 and 80 sqm of surface area, with two rooms. A special preference is given to flats with an elevator and outdoor access. 54% of all purchases are for primary residences, 20% for secondary residences, and the 26% for investment purposes make the city centre the most prized location in Barcelona for this type of purchase. Furthermore, many clients turn their secondary residences into profitable assets by renting them out. In 2019, the average price for properties in Ciutat Vella was held at 4.085 euros / sqm, which is an 8% decline compared to 2018, the most popular neighborhoods being Born, the Gothic Quarter, Raval and Barceloneta.

36 | Market Report 2019-20 Spain and Andorra

Property Prices in Ciutat Vella (Data in euros / sqm)

Minimum

Maximum

Average

Barri Gòtic

2.800

6.355

4.350

Raval

1.585

6.110

3.360

Barceloneta

1.760

7.930

5.030

Sant Pere, Santa Caterina i la Ribera

2.330

6.155

4.405

Eixample

Located in the centre of Barcelona, Eixample is the quintessential modernist district, where the average price of a home stood at 4,750 euros / sqm last year, which is a 7% decrease compared to the previous period. Aside from the decline in price, in 2019 the area saw a drop in foreign clients and investors at the same time as a growing number of national buyers sought to purchase their first residence.

That being said, Sant Antoni stands out as an increasingly popular neighborhood to live in, with great restaurants, entertainment, and services, propelled by the remodeling of the market and the creation of new pedestrian spaces such as Superilla.

Property Prices in Eixample

The number of foreigners purchasing homes in Eixample last year was 43%, compared to 52% in 2018. Chinese buyers constituted most of the buyers, although a notable rise in Italian and French clients was also observed. In 2019, Eixample claimed the most amount of expedited Golden Visas transactions in Ciudad Condal (Barcelona). Penthouse apartments and flats with balconies ranging from 90 to 130 sqm, along with three rooms, represent the most sought-after homes in Eixample. The most in-demand areas are la Dreta de l'Eixample and l'Antiga Esquerra de l'Eixample, due to their proximity to major streets like Passeig de Gràcia, the Rambla de Catalunya, and Enric Granados.

(Data in euros / sqm)

Minimum

Maximum

Average

La Dreta de l'Eixample

3.470

8.400

5.290

La Nova Esquerra de l'Eixample

3.110

7.320

4.410

La Sagrada Família, Fort Pienc

2.490

6.660

4.125

L'Antiga Esquerra de l'Eixample

3.140

8.080

4.810

Sant Antoni

2.690

5.730

4.260

Real Estate Market Trend · Catalonia | 37

Sants-Montjuïc

Les Corts

Located in the south of Barcelona, about 10 minutes away by subway from the centre, Sants-Montjuïc is one of the most iconic districts in the city, as it combines the mountains, the sea, and an excellent array of cultural activities. It is also next to the most important train station in Catalonia and the second in Spain.

Three neighborhoods comprise this middle-class district: Les Corts, Pedralbes and la Maternitat. Les Corts, Pedralbes and la Maternitat i San Ramon. It has a number of advantages granted by its location, known as a financial centre hosting Universidad Politécnica. The average price of housing last year stood at 4.890 euros / sqm, which represents a decrease by 4% from 2018. The housing in the highest demand are flats and penthouses with three rooms, and a surface area of 70 to 90sqm.

The value of the properties dropped by 2.8% last year in this district till it stood at 3,790 euros / sqm. Sales closed by Engel & Völkers dropped by 5% in this area to a total of 35 units. The most in-demand properties offer 50 to 90 sqm of surface area, with two or three rooms, and all buyers show a special preference for penthouse apartments. Sants and El Poble Sec-Parc de Montjuïc, which share part of the demand for property in Sant Antoni, represent the most coveted areas. Hostafrancs holds the highest average price at 4,280 euros / sqm. The largest portion of the demand comes from national buyers, comprising 65% of interested parties. With regards to the international buyers, the majo-

The neighborhoods Pedralbes and Les Corts claim the highest demand, with the former known for the most exclusive residential areas in Barcelona, where international buyers seek houses with gardens. Regarding Les Corts, it is one of the most consolidated areas with the best services in the city. It is a familial neighborhood offering excellent transport and lots of tranquility. 75% of buyers are Spanish, but although the presence of foreigners is not as great as in other districts, last year two Golden Visa operations. Most purchases are for primary residences, with only 8% constituting an investment.

Property Prices in Les Corts (Data in euros / sqm)

rity come from France. 71% of all clients purchase homes intended as their primary residence.

Property Prices in Sants-Montjuïc (Data in euros / sqm)

Minimum

Maximum

Average

Poble Sec Parc Montjuïc

3.100

5.225

3.950

Hostafrancs

4.120

4.340

4.280

Sants

2.215

4.565

3.530

Sants - Badal

3.270

3.800

3.625

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Minimum

Maximum

Average

La Maternitat i Sant Ramon

3.310

4.885

4.000

Les Corts

3.230

5.060

4.150

Pedralbes

4.015

6.970

5.445

Sarrià-Sant Gervasi

The area with the highest income per capita in Barcelona holds the most distinguished neighborhoods in the city. This comfortable residential district brings together numerous parks, prestigious schools and health centres. The average price of the area fell by 3% last year to 5,010 euros/m2, and will remain more or less at this amount, as this year expects to see some stability after the readjustments from recent months. Houses, penthouses and flats with a communal area and parking are the most demanded properties. Sought-after homes have three or more rooms from 130 to 200 sqm. Galvany is one of the neighbourhoods with the highest demand and where requests are centred on royal estates, while in Sarrià and Bonanova there is a high demand for houses with gardens.

87% of buyers are domestic, an increase of percentage points compared to the previous year. The local client has entered the market more strongly and is causing downward closing price adjustments. Even so, the properties of more than four million euros continue to be in demand by the international client. 85% of the purchases are made to acquire a main residence, and only 6% as an investment. 53% of the operations are done with a mortgage, a percentage that is growing due to the increase in Spanish clients and low interest rates.

Property Prices in Sarrià-Sant Gervasi (Data in euros / sqm)

Minimum

Maximum

Average

El Putxet i el Farró

3.620

6.260

4.140

Sant Gervasi - Galvany

4.030

6.200

4.980

Sant Gervasi - La Bonanova

3.180

7.190

5.280

Les Tres Torres

4.530

6.070

5.440

Sarrià

3.160

7.000

5.075

Vallvidrera, el Tibidabo i les Planes

2.840

4.810

4.385

Real Estate Market Trend · Catalonia | 39

Gràcia

One of the city’s oldest districts is also the smallest, but that does not prevent it from registering the second highest figure in terms of population density. The price of properties reached 4,300 euros / sqm last year, which is 7% more than the previous year. This increase is due to a price adjustment for the type of properties sold by Engel & Völkers. More operations were therefore carried out on refurbished properties in 2019, whereas in 2018, they were done on unrefurbished properties. Looking at 2020, an adjustment of current prices is expected considering the increase in foreign customers compared to the previous year.

Flats and apartments from 70 to 90 sqm with two or three rooms are the most requested in Gràcia. The four-bedroom properties, although not frequently offered in the area, do have a high demand and are the ones that sell the fastest. 80% of the buyers are looking for a main residence, 10% for a second home and another 10% are buying to invest. The Vila de Gràcia, Camp d'en Grassot and Gràcia Nova are the most sought-after neighbourhoods. All three are characterized by having all kinds of services (hospitals, schools, shops...), being located near the city centre, and being well-connected.

Property Prices in Gràcia (Data in euros / sqm)

Minimum

Maximum

Average

El Camp d'en Grassot i Gràcia Nova

3.230

6.160

4.690

La Salut

1.035

4.320

2.210

La Vila de Gràcia

2.270

7.170

4.480

Vallcarca i els Penitents

2.995

5.545

3.750

40 | Market Report 2019-20 Spain and Andorra

The area has stood out among international clients, who are attracted by the charm of the neighbourhood's Catalan-style atmosphere. Foreigners accounted for 37% of the total purchases in 2019, compared to 15% in 2018. Among them are a majority of French buyers, followed by Chinese, Americans and British.

Horta - Guinardó

Nou Barris

Located in the northeast of the city in a large valley, Horta-Guinardó is the third largest district of Barcelona after Sants-Montjuïc and Sarrià-Sant Gervasi. It has a very differentiated and heterogeneous urban structure due to the varied topography, which includes the Collserola mountain range, the Hebron valley or the Horta stream.

The youngest district of the city is located in the north of the city. Composed of13 districts, Nou Barris offersy green spaces next to historical buildings such as the Castell de Torre Baró. This brick castle with a medieval feel is located at the top of the Collserola mountain range and is one of the city's most privileged viewpoints.

Horta-Guinardó is in increasing demand because, like its neighbour Gràcia, it is both very well-connected and equipped with all the necessary services. A great offer of green spaces makes it complete. The average price of a property reached 3,020 euros / sqm in 2019, which is an increase of 2% compared to the previous year. Houses and flats from 110 to 150 sqm with three to four rooms claim the main demand in this district. Among them, the most sought-after properties are single-family homes with gardens. The neighborhoods Can Baró and La Font d'en Fargues receive the highest number of applications, the latter due to the fact that it is a residential garden area. Spanish buyers comprise 75% of the demand, the majority of whom are also among the sellers. Practically all purchases are for a primary residence, while only 3% are made as an investment.

Property Prices in Horta - Guinardó (Data in euros / sqm)

Minimum

Maximum

Average

2.550

4.640

3.245

4.120

El Guinardó

3.250

3.970

3.710

Horta

1.980

3.730

2.670

La Font d'en Fargues

2.280

5.000

3.015

Montbau

2.050

3.330

2.880

Can Baró El Baix Guinardó

The average price of a home in this district reached 2,620 euros / sqm in 2019. Apartments between 75 and 90 square metres constitute the most popular housing type. The neighbourhoods attracting the largest number of purchase requests, all of which come from Spanish citizens, are Vilapicina i Torre Llobeta and Porta, known as economic hubs offering excellent transport to the centre.

Property Prices in Nou Barris (Data in euros / sqm)

Minimum

Maximum

Average

La Guineueta

2.350

2.730

2.500

la Prosperitat

2.320

2.790

2.490

La Trinitat Nova

1.700

2.570

2.200

Porta

2.840

3.475

3.150

Vilapicina i la Torre Llobeta

1.245

3.000

1.850

Real Estate Market Trend · Catalonia | 41

Sant Andreu

Sant Martí

The urban transformation of Sant Andreu is closely linked to the arrival of the AVE (high-speed train) in the district and the creation of the new La Sagrera station. This new infrastructure and its railway accesses will give a more innovative character to the neighborhoods of La Sagrera and Sant Andreu. Therefore, while the average cost of housing stood at 2,900 euros / sqm in 2019, the new developments will drive increased demand and rising prices in 2020.

With a privileged coastal location within the city, excellent transport, and a wide range of services, Sant Martí offers opportunities to renovate large three to four bedroom apartments. The area received a boost in opportunities generated from the Glòries Tower, where relevant companies in the technology sector established their headquarters, attracting their workers to the area.

Apartments between 90 and 110 square metres with three or four bedrooms attract the highest demand in a district where 89% of the buyers are Spanish people looking for their main residence. On the other hand, 7% of the clients carry out their purchases as an investment strategy, since rent offers more profitability than in other areas.

Property Prices in Sant Andreu (Data in euros / sqm)

El Congrés i els Indians Navas Sagrera Sant Andreu

Minimum

Maximum

Average

3.280

2.790

4.010

3.125

2.430

2.570

3.060

2.690

The average price of a property in 2019 was 4,170 euros / sqm, an increase of 5% over the previous year. The number of sales made by Engel & Völkers was lower in 2019, but the prices were higher. With the real estate agency opening up a new office in the district, an increase in sales by 25% for 2020 is expected. Apartments between 80 and 100 sqm with two to three bedrooms receive the highest demand. In addition, properties with extras such as parking and balconies are sought-after. The most popular neighborhoods, Poblenou, Camp de l'Arpa i Clot and the area of Diagonal Mar, attract families looking for quiet areas with schools and community facilities such as swimming pools. 78% of all buyers seek a main residence, 13% an investment, and 10% a second home. The percentage of international buyers in this area reaches 36%, led by British, French and Italians, while the presence of Russian and Chinese clients has gone down.

Property Prices in Sant Martí (Data in euros / sqm)

42 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Diagonal Mar i el Front Marítim del Poblenou

5.750

8.890

7.090

El Clot

2.565

4.510

3.460

El Parc i la Llacuna del Poblenou

2.990

4.085

3.650

El Poblenou

3.460

6.270

4.260

La Vila Olímpica del Poblenou

3.520

6.855

4.790

Provençals del Poblenou

3.100

5.615

3.915

Sant Martí de Provençals

2.735

3.810

3.060

Rental

The price of rent remained stable in Barcelona throughout 2019, and even showed a slight drop in the average cost of the city. The operations carried out by Engel & Völkers reflect this stability with an average rental price of 1,740 euros, compared to 1,705 euros in the previous year, in all the areas where the real estate company is present. Thus, the average cost per square metre to rent in Barcelona reached 17.7 euros / sqm, in line with what was registered in 2018, while in the periphery it rose by 2% to 10.8 euros / sqm. The centre of the city and the periphery show different developments. Prices rising in the surrounding areas are driven by a growing demand, while in Barcelona, especially in the more central areas, the decline in international customers has led to a drop in prices. 66% of rentals were made by foreigners in 2019, only one point more than in the previous year, although the volume of properties rented to Italians, Americans and Germans is increasing. Forecasts for 2020 suggest that demand will remain stable, but the interest of domestic customers will shift to buying property to take advantage of low interest rates. The international demand on the other hand will be sustained. Fewer transactions are therefore expected, and the price will undergo a slight drop. In addition, there is some fear of price regulation and we are aware of the new rent law extending the duration of contracts to five years.

The capital’s most sought-after areas are Eixample, Sarrià-Sant Gervasi and Ciutat Vella. Flats or penthouses from 50 to 90 sqm with two rooms attract the most popularity. In the surroundings, Sant Cugat del Vallès claims the highest demand. Rental prices in Barcelona by district (Data in euros / sqm)

Minimum

Maximum

Average

Sarrià - Sant Gervasi

Eixample

Ciutat Vella

Les Corts

Gràcia

Sant Martí

In the periphery, demand is expected to increase while supply will be constant, with the possibility of prices increasing beyond what is expected. The high volume of people looking to rent will be driven by those who cannot acquire a property due to their economic situation. Another factor to take into account is the mobility of tenants in the city who, faced with a raise in rent, will have to look for properties further out.

Real Estate Market Trend · Catalonia | 43

Badalona and Hospitalet

Santa Coloma de Gramanet

Badalona

Sant AdriĂ de BesĂ˛s

Barcelona

Hospitalet de Llobregat

Badalona Hospitalet de Llobregat

44 | Market Report 2019-20 Spain and Andorra

Badalona

Hospitalet de Llobregat

Located 10 km away from Barcelona, Badalona has experienced a resurgence thanks to the port channel’s construction and the seafront area’s redevelopment. The possibility of being close to the sea and the capital due to excellent transport services is its strong point.

The second largest municipality in Catalonia (269,903 inhabitants in 2018) is part of the Barcelona metropolitan area. It has excellent transport services to the city centre and it is an ideal alternative for those seeking the comforts of a residential environment without having to give up living near the capital. The Ciudad Judicial has also driven a revitalization of the city and an important change in urban development. The average cost of properties last year reached 3,230 euros / sqm, which is very much in line with prices in 2018. Flats and penthouses from 90 to 110 sqm with four bedrooms receive the highest demand, in areas such as Plaza Europa and Santa Eulàlia, due to the architectural typology of the buildings, most of them semi-new constructions built around the year 2000. 62% of the buyers are Spanish while the presence of foreigners is comprised of Romanians, Chinese, Ukrainians, Iranians and Nepalese.

The average price of homes remained stable last year at around 2,365 euros / sqm and is expected to see a slight increase in 2020.

Property Prices in Hospitalet (Data in euros / sqm)

Both flats and duplexes, with three bedrooms, between 90 and 130 sqm, are the most sought-after properties, although the hottest properties in the area are centrally located flats with a balcony, which are close to the sea and offer great views. The city centre claims the most

Hospitalet de Llobregat

Minimum

Maximum

Average

2.465

4.650

3.230

popularity in the area. All the buyers are from Spain and the acquisitions are for a primary residence. In 2019, small flats saw the most sales.

Property Prices in Badalona (Data in euros / sqm)

Badalona

Minimum

Maximum

Average

1.670

3.780

2.365

Real Estate Market Trend · Catalonia | 45

Barcelona's surroundings

Vallès Oriental

Vallès Occidental

Barcelonés Baix Llobregat

Garraf

Vallès Oriental and Occidental Baix Llobregat Garraf

46 | Market Report 2019-20 Spain and Andorra

Barcelona's surroundings

Vallès Oriental - Vallès Occidental

The Vallès region, located between the rivers Llobregat and Tordera, is divided into two administrative districts: the Vallès Occidental, whose capitals are Sabadell and Terrassa; and the Vallès Oriental, where the region's capital is located: Granollers. In both districts housing prices rose by around 4-5% in 2019.

Vallès Occidental The average price of properties in Vallès Occidental reached 2,905 euros / sqm in 2019, 4% more than the previous year, with the demand centred on single-family and terraced homes over 300 sqm, as well as penthouses and flats with terraces between 90 and 110 sqm; all of them with three or four bedrooms. The most profitable flats are those with four rooms, parking and an outside exit, due to their scarce supply and because families comprise the majority of the demand.

Sant Cugat del Vallès, Sabadell, Sant Quirze del Vallès and Cerdanyola del Vallès are the most popular areas. In Sant Cugat, both Parc Central and Eixample claimed the highest demand from those looking for a flat, while Arxius, Valldoreix and Mirasol, areas close to the station, attracted clients looking for a house. The strong points of these residential areas include the high quality of life offered, and their proximity to the metropolitan area. 90% of the buyers purchase their primary residence while the remaining 10% are making an investment. Sant Cugat retains the title of the most premium area. It is where the highest prices are reached at 5,600 euros / sqm, although the average cost has stood at 3,460 euros / sqm. On the other hand, in Sabadell the average price remains below 2,000 euros / sqm, around 1,900 euros / sqm, although operations carried out by Engel & Völkers last year involved payments of up to 3,445 euros / sqm.

Real Estate Market Trend · Catalonia | 47

Vallès Oriental In Vallès Oriental the average cost of housing stood at 1,600 euros / sqm, a 5% increase, and prices are expected to remain stable this year. Noteworthy is the increase in Spanish buyers in 2019, accounting for 95% of all purchases, compared to 80% in 2018. Granollers holds the properties in highest demand, which are the flats, duplexes, and single-family homes with a garden, more than 200 sqm and four rooms. Customers seek well-connected houses close to the town centre, with one or two floors on flat plots of land. Granollers, La Garriga, Cardedeu and Caldes de Montbui comprise the most sought-after areas for buyers; Granollers for being the capital and the others for offering an

48 | Market Report 2019-20 Spain and Andorra

excellent quality of life to its inhabitants, who also value living in a privileged location between the Montseny Natural Park and the Serralada Catalan Coast. Cardedeu stands out as one of the most privileged areas with an average price of 1,980 euros / sqm, and where the most sales transactions were registered in 2019.

Property Prices in el Vallès (Data in euros / sqm)

Minimum

Maximum

Average

Vallès Occidental

1.150

5.600

2.905

Vallès Oriental

1.225

2.475

1.600

Matadepera

Rentals

Located in the region of Vallés Occidental, Matadepera is a residential town that enjoys high-quality local commerce and the services necessary for a town of its size, whose population is close to 10,000 inhabitants.

The price of homes for rent increased by 5% to an average of 8 euros / sqm. The supply of rental properties is low for such a high demand composed largely of young families from Barcelona, Sabadell or Terrassa. These couples, most of them under 40 years old, want to rent a house in Matadepera to see if they can adapt to life in a much smaller municipality, with few central streets and where most of the districts are housing estates.

The price of housing increased by 4% last year to 2,350 euros / sqm. The most demanded housing typology is a single-family home of 250 sqm and four rooms. Districts attracting the most interest are Centro, Drac-Parc and Can Prat - La Plana. Buyers are mostly couples between 45 and 50 years old, with two or three children and a competitive economic capacity. Sellers are older people, around 60 years old, who sell mostly single-family homes, because they want to live in smaller and more practical houses.

Clients are looking to rent a 300 sqm, four-bedroom single-family house. The area with the greatest offer is the Cavall Bernat housing development, but the most sought-after districts are the centre or those located nearby.

Price of rent in Matadepera (Data in euros / sqm)

Property Prices in Matadepera Minimum

Maximum

Average

Golf

8,5

11,5

(Data in euros / sqm)

Minimum

Maximum

Average

Cavall Bernat/Can Roure

5,5

6,5

Golf

2.400

3.000

2.700

Centro

7,5

11,5

9,5

Cavall Bernat/Can Roure

1.450

2.400

1.925

Centro

2.230

3.840

3.040

Can Solà Del Racó/ Pla De Sant Llorenç

5,5

6,5

Drac Parc

1.710

2.700

2.205

La Plana/Can Prat

7,5

11,5

9,5

La Plana/Can Prat

1.970

2.900

2.435

Les Pedritxes/Els Rourets

5,5

6,5

Les Pedritxes/Els Rourets

1.300

1.980

1.640

Verge de Montserrat

8,5

11,5

Verge de Montserrat

2.440

3.010

2.725

Real Estate Market Trend · Catalonia | 49

Baix Llobregat

The third most populated region of Catalonia has its capital in Sant Feliu de Llobregat. From a real estate point of view it can be divided into two large areas with different prices. While the north has reached an average price of 1,440 euros / sqm, after rising by 10%, in the south, the price has reached 2,030 euros / sqm, with a slight increase compared to 2018.

Baix Llobregat Sur The type of in-demand property is three to four bedroom 117 sqm flats in Molins de Rei, to the five or six bedroom houses of 200-300sqm in Sant Boi de Llobregat, Castelldefels and Gavà. In Molins de Rei, the average cost of a flat is 300,000 euros and the cost of the houses is 607,000 euros.

Baix Llobregat Norte The residential offer in the north is competitive, allowing access to single-family houses in residential environments surrounded by vegetation, as well as high-quality flats or semi-detached houses in small towns. The single-family homes of 200 sqm or more and four rooms attract the highest demand in the area, with Vallirana, Corbera de Llobregat and Cervelló the most popular locations. They offer the possibility of living close to Barcelona and with good transport. Most of the buyers are Spanish people looking to acquire their primary residence, although the increase in the presence of international clients stands out, rising from 5% in 2018 to 12% last year.

Property Prices in Baix Llobregat Norte (Data in euros / sqm)

Minimum

Maximum

Average

Martorell, La Palma de Cervelló, Sant Andreu de la Barca

1.340

2.200

1.620

Corbera, Pallejà

1.165

1.920

1.400

Vallirana, Cervelló

1.280

1.840

1.470

The municipalities in greatest demand are Molins de Rei, Castelldefels (Pineda, Bellamar, Montemar and Poal), Gavà Mar, Sant Boi de Llobregat (Marianao), Cornellà, Viladecans and the municipality of Begues, where there is a lot of internal demand from within the municipality itself. It is important to highlight that many of the properties in the prime areas of Gavà Mar and Castelldefels, have undergone overvaluation. The most popular areas are in front of the beach , with houses located in Gavà and Castelldefels, offering views of the sea. 88% of the buyers are Spanish citizens, and in recent months there has been an increase in Russian customers.

Property Prices in Baix Llobregat Sur (Data in euros / sqm)

50 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Molins de Rei

1.450

4.035

2.120

Sant Boi, Castelldefels, Gavà, Begues, Santa Coloma de Cervelló

1.450

3.710

1.960

Sant Just

Price of housing in Sant Just, Esplugues, Sant Joan Despí and Sant Feliu de Llobregat

These municipalities, part of Barcelona’s metropolitan, share two traits that attract real estate clients: their great transport connection to the airport, and the location of international schools within the vicinity. Two different price trends took place in 2019: a slight growth lasting until the summer, which then gave way to a decline at the end of the year, resulting in stabilized housing costs in the area. Prices range from a maximum of 5,000 euros / sqm in the centre of Sant Just and Ciudad Diagonal de Esplugues, to a minimum of 2,500 euros / sqm in Sant Feliu de Llobregat. Forecasts indicate that the market will remain stable this year, although there could be a drop in prices of less than 5%. Semi-detached 250 sqm houses and single-family homes between 300 sqm and 400 sqm are the most sought-after properties in Sant Just Desvern and Esplugues, while flats of 100 to 150 sqm claim the highest demand in Sant Joan Despí and Sant Feliu.

(Data in euros / sqm)

Minimum

Maximum

Average

Esplugues: Ciudad Diagonal

3.700

5.000

4.100

Esplugues: La Mallola

3.000

3.600

3.200

Esplugues: Centro

2.800

4.000

3.200

Sant Just Desvern: Centro

3.000

5.000

3.800

Sant Joan Despí

2.600

3.800

2.900

Sant Feliu de Llobregat

2.500

3.700

2.800

Rentals The price of housing for rent shifted in 2019 between 2,000 and 2,500 euros, an amount similar to that recorded in 2018. As in the sales market, you find the most expensive properties in Esplugues and Sant Just Desvern, which are 15-20% more expensive than those in Sant Joan Despí and Sant Feliu. Also, regarding the cost of rent, there was a slight increase which lasted until summer, but it was compensated by the decrease seen at the end of the year.

Real Estate Market Trend · Catalonia | 51

Garraf

Sitges The average time to sell a property in Sitges is six months, which is hardly a change from 2017 and 2018. While last year the average price of seafront properties stood at 6,800 euros / sqm, in the centre it was 4,400 euros / sqm. The housing typology in highest demand are apartments between 70 and 90 sqm, with three bedrooms. Parellades street is the most popular area in Centro, where buyers are mainly singles looking for a primary residence (40%) , a second residence (40%), or an investment (20%).

While the sellers are only 20% international, most buyers in Sitges are foreigners looking for apartments, with the French accounting for 20% of the demand, and the English carrying out 15% of the transactions. The Dutch sign for 10% of the purchases and Americans for 10%, both demand large houses, although Americans also opt for apartments. Belgians, Germans and citizens of Eastern countries account for 30% of the demand.

The biggest drop in prices was recorded by Terramar, a 4.5% decrease compared to Vinyet's invariance, which remained at 5,500 euros/sqm. In these districts buyers mainly seek medium and large houses between 200 and 250 sqm, with four to five bedrooms.

Property Prices in Sitges

Families comprise the main demand for a second home near the promenade, like in Vinyet, where they appreciate its proximity to the sea, and in Terramar, which is distinguished by its tranquillity.

(Data in euros / sqm)

Minimum

Maximum

Average

Primera lĂnea

6.000

8.500

6.800

Vinyet

5.000

7.000

5.500

Terramar

4.900

6.800

5.250

Centro

3.800

4.800

4.400

Rentals Rent in Sitges has remained unchanged at 13.5 euros/ qm. The most attractive type of housing to rent is an apartment of 110 sqm and three rooms. The in-demand areas are Vinyet and Terramar, both of which are close to the town and the sea. 65% of the tenants are foreigners, many of them French, and 75% of the landlords are also foreigners. Properties are sought-after in equal parts, both as a primary residence and as a second home.

Price of rent in Sitges (Data in euros / sqm)

Sitges

52 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

13,5

Bages and Anoia

Bages and Anoia are located in the centre of Catalonia. This territory has a long history of real estate operations, due to its important urban centres perfectly connected to the A2 and C16 roads. Bages has its capital in Manresa and Anoia in Igualada.

90% of the buyers are from Spain, a percentage which has fallen by five points with regards to 2018, and all purchases went for a primary residence.

Property Prices in Bages and Anoia

Both are popular places to live when it comes to buying a home. These residential areas present an attractive and varied offer to small and big investors, and also to buyers not interested in living in Barcelona.

(Data in euros / sqm)

Minimum

Maximum

Average

Igualada

1.080

1.660

1.410

Manresa

980

1.590

1.255

Prices for properties reached 1,340 euros / sqm last year, with an increase in line with the rest of Barcelona's periphery. The most requested properties are single-family and terraced houses with 200 sqm or more, and three to four bedrooms.

Real Estate Market Trend Âˇ Catalonia | 53

Costa Brava

CadaquĂŠs Roses Empuria Brava

Gerona

Costa Brava Sur

Costa Brava

54 | Market Report 2019-20 Spain and Andorra

Costa Brava

Cadaqués

With a population of almost 3,000 inhabitants, Cadaqués is the easternmost town on the Iberian Peninsula, belonging to the Alt Empordà region. An exclusive bohemian enclave, its economy is based on tourism. The proximity it enjoys to Barcelona and France makes the town a very popular place for second-home buyers. The Cadaqués real estate market experienced a quiet year in 2019, but is looking forward to the prospect of increased activity in 2020. Properties reached the highest price with maximums of 10,000 euros/sqm, which do not constitute a major change compared to 2018. In this exclusive area, buyers seek houses of 170 sqm, with three bedrooms, located close to the centre, with great view of the sea and lots of charm. 90% of the buyers are foreigners, but in recent months there we have seen an increase in French clients.

Property Prices in Cadaqués (Data in euros / sqm)

Minimum

Maximum

Average

Primera Línea

4.000

10.000

7.000

Centro

2.500

4.900

3.700

Port Lligat/ Parque Natural

3.500

7.400

5.450

S’Aguarda

2.750

3.550

3.150

Caials

2.000

3.350

2.675

Sa Conca/Es Quers

2.500

8.000

5.250

899

1.598

1.248

Poblaciones no Costeras

Apartments and houses represent the most sought-after properties in the centre overlooking the village. Buyers, mainly families, want three-room apartments with a surface area between 70 and 100 sqm, while those interested in houses want a surface area ranging between 120 sqm and 220 sqm, also with three rooms. Families make the most purchases.

Real Estate Market Trend · Catalonia | 55

Peralada - Figueres

The region of Alt Empordà, bordering France, is one of the most touristic areas in northern Catalonia. The local economy is based on both tourism and winemaking, and apart from the coastal towns with high demand for real estate, the quiet and charming inland villages are sought by those wanting privacy. The property demand goes for country houses and farmhouses. Figueres, the capital of the region, is the cheapest area covered by Engel & Völkers, where one can buy a house within the region of Alt Empordà. The properties with more demand are flats from 60 to 200 sqm distributed among two to five rooms. Buyers want to make an investment with their property purchases. Clients are divided equally between middle-aged Spaniards and foreigners. Located 9 kilometres away from Figueres, in Navata, the popular housing typology in the Torremirona and Peralada Golf communities consists of 200 sqm villas with three to five bedrooms. Both exclusive areas are sought by golf lovers. In peralada Gold, 100% of the buyers are 45 to 70 year old French citizens, while in Torremirona the demand is divided equally between Spanish and foreigners.

In the town known as Peralada, buyers primarily seek flats, but also townhouses from 60 to 250 sqm with two to five rooms, whereas in the outskirts both villas and flats claim the demand.

Property Prices in Peralada y Alto Ampurdán (Data in euros / sqm)

56 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Peralada

1.500

2.000

1.750

Torremirona Golf

1.500

2.000

1.750

Alrededores

2.000

2.500

2.250

Alto Ampurdán centro y norte

750

1.400

1.075

Figueres

600

1.000

800

Roses

This municipality is one of the most touristic in the region of Alt EmpordĂ . It claims the most renowned fishing port on the north coast of Catalonia. The buyer profile is composed of foreign citizens, who account for 95% of the acquisitions. The majority are 45 to 75 year old clients looking for single-family homes with a surface area between 100 and 120 sqm, along with plots of up to 500 sqm. A noticeable decline in demand from the French, German and English was registered last year. Almadrava, Roses Puerto and Pau claim the highest prices, with a maximum of 2,500 euros/sqm, an amount lower than those reached in previous years. The first of these areas, located four kilometres from town, is on the beachfront. Its most sought-after properties are two-room 60 sqm flats and three-room 200 sqm villas. While in both Roses Puerto and Pau, the properties sought are large villas, the reasons for this preference differs in each area. In the former, buyers value the proximity of the marina, the promenade and the shops , reached in just a few minutes, whereas in Pau, clients appreciate the great views and the privacy.

Property Prices in Roses (Data in euros / sqm)

Minimum

Maximum

Average

Roses Pueblo

1.000

2.000

1.500

Mas Busca

1.000

1.500

1.250

Almadrava

2.000

2.500

2.250

Puig Rom

1.500

2.000

1.750

Canyelles

1.500

2.000

1.750

Roses Puerto

2.000

2.500

2.250

Palau Savardera

1.500

2.000

1.750

Pau

2.000

2.500

2.250

Santa Margarita

1.500

2.000

1.750

Mas Fumats

1.500

2.000

1.750

Real Estate Market Trend Âˇ Catalonia | 57

Empuriabrava

Surrounded by the Marismas del Ampurdán Natural Park, Empuriabrava stands out as the largest residential marina in Europe. It offers more than 30 kilometres of navigable channels, allowing one to have a mooring in front of their home. The average price of real estate in Empuriabrava reached 2,615 euros/sqm in 2019, an increase of almost 15% over the previous year, although prices ranged considerably according to the property’s location. The profile of the buyer is made up of middle-aged entrepreneurs, 90% of whom are foreigners, mostly French, German and Belgian families. In recent months there has been an upturn in demand from German buyers. The sellers, also foreigners for the most part, upon taking the generational leap, wish to get rid of their house to find a larger or smaller one.

58 | Market Report 2019-20 Spain and Andorra

The most demanded property typology is a house with great views, access to the canal, 500 sqm of land, and 200 sqm distributed throughout four rooms. Houses offering views of or direct access to the canal or sea claim the highest demand. 60% of the buyers seek a second home while 30% are buying to invest.

Property Prices in Empuriabrava (Data in euros / sqm)

Minimum

Maximum

Average

Canal ancho

2.700

4.000

3.300

Canal estrecho

2.300

3.600

3.000

Anteriores a los puentes

3.600

5.500

4.400

Sin canal ni amarre

2.000

2.900

2.400

Castelló d´Empuries

800

1.600

950

Costa Brava Sur

Only one hour away from Barcelona, and 20 minutes from Girona, the southern Costa Brava holds some of the most touristy areas on the Catalan coast. It also offers a rich interior where the Montseny and Les Guilleries national parks represent the main attractions. On the coast you find a wide range of property types and prices depending on the location. In Blanes, Platja d'Aro, Sant Feliu de Guixols and Palamós, where apartments attract the most demand, buyers look for three bedroom 80 sqm homes located in the centre, or on the front line with views of the sea, and next to the shopping centre. In areas such as Lloret de Mar, Tossa de Mar, Montseny-Guilleries, Selva Interior, Calonge and Baix Empordà Interior, the demand goes to single-family four to five bedroom houses between 300 and 400 sqm, whose prices are much higher. In fact, in Platja d'Aro, a village that stands out for its location near the sea and the main transport axes, a maximum of 8,000 euros/sqm was registered in 2019. Spanish and foreign families constitute the buyer profile, the latter being the majority in Lloret de Mar (where the presence of Americans has increased), Tossa del Mar, Platja d'Aro, Sant Feliu de Guixols and Calonge. While Spaniards opt for flats, foreigners want houses. The majority buy secondary residences, although those who buy to invest account for 30% of the buyers in Lloret de Mar and 20% in Platja d'Aro.

Property Prices in el sur de la Costa Brava (Data in euros / sqm)

Minimum

Maximum

Average

Lloret de Mar

1.200

4.500

2.700

Tossa de Mar

1.500

5.000

3.000

Blanes

1.200

4.500

2.400

Montseny

800

2.200

1.300

Selva interior

600

1.800

1.200

Platja d'Aro

1.800

8.000

3.500

Sant Feliu de Guixols

1.200

4.500

2.800

Calonge

1.200

4.000

2.200

Palamós

1.500

4.500

2.800

Baix Empordà interior

1.200

3.000

2.500

Real Estate Market Trend · Catalonia | 59

Tarragona

60 | Market Report 2019-20 Spain and Andorra

Tarragona

134.515

30.117 €

24.340 €

1.734 €/m²

+1 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Located on the shores of the Mediterranean, in the heart of the Costa Daurada, Tarragona is a tourist attraction, but also a World Heritage Site, as declared by UNESCO for its archaeological ensemble called Tarraco. In 2019 the average price of the properties in the city moved within the range of the highest amounts of 2,208 euros/sqm in La Mora-Tamarit, and 1,432 euro/sqm in Barris Marítims. Located at 11 km from the city of Tarragona, La Mora-Tamarit is distinguished for being a residential area of single-family homes. The most sought-after property in this neighbourhood is a 200 sqm house in Tamarit, with the bulk of the demand coming from families (58% Spanish) looking for their second home. In 2019, the average price fell by 8.6%. In Eixample, Rambla Nova is the most popular area for buying a house, right in the heart of the city. The average price in this district increased by 4.27% in 2019 to 1,874 euros/sqm. The most popular properties are 120 sqm flats with three to four bedrooms, sought by families, middle-aged couples and young people. 85% of the buyers are Spanish and 80% want to establish their primary residence. The properties requested in this area vary from flats to houses to be renovated, including penthouses. Buyers want 100 sqm homes with three to four bedrooms. Most of the buyers are young people, 65% of whom are Spanish citi-

zens looking for their primary residence. The average price increased in this area by 18.6% to 1,820 euros/sqm. The most requested locations in the Urbanisations of Llevant are the neighbourhoods overlooking the sea. Families with children, in 71% of the cases involving Spaniards, represent the main demand for housing with an area of about 150 sqm and a minimum of four bedrooms. The average cost of the properties here reached 1,776 euros/ sqm in 2019. Finally, the maritime neighborhoods in Fonts del Serrallo claim the most coveted territory, where buyers seek 100 sqm apartments with three to four rooms. Most clients are couples and 84% are Spanish. In the last year, the average price has increased by 5.5%. Property Prices in Tarragona (Data in euros / sqm)

Minimum

Maximum

Average

Parte Alta

1.667

2.679

1.820

Eixample

1.165

2.385

1.794

960

2.815

1.776

1.920

2.405

2.208

940

2.145

1.432

Urb. Llevant La Mora - Tamarit Barris Marítims

Real Estate Market Trend · Catalonia | 61

Catalan Pyrenees

CerdaĂąa

Catalonia

Cerdanya

62 | Market Report 2019-20 Spain and Andorra

Catalan Pyrenees

Cerdanya

Surrounded by the Catalan Pyrenees, the natural border crossing between Catalonia, France and Andorra, the Cerdanya Valley has excellent transport connections from both Barcelona and Girona, making it the primary choice for many Catalans in search of their second or third home. The essential features of a property for sale in Cerdanya are views of the valley and the mountains, as well as a garden area. The demand in this region is entirely made up of Spanish families. The average price of second hand houses commercialized by Engel & Völkers in Cerdanya was 2.100 euros/sqm last year. The highest average cost was reached in Bolvir at the Real Club de Golf Cerdanya, where it exceeded 4,000 euros/sqm.

Alp is a village in Cerdanya that is only 7 kilometres away from the ski slopes of Masella and 12 kilometres from La Molina. The most sought-after properties are houses of 150 sqm, with a minimum of three rooms. Nearby you have Soriguerola, which stands out for the high demand of apartments on the ground floor with direct access to the Golf de Fontanals. Another popular location is Queixans. It is a village with a large child population where buyers seek single-family homes of 170 sqm and a minimum of three bedrooms. The second territory comprises the municipality of Llívia, which is in great demand for its family atmosphere, active culture and diverse gastronomic offerings. The most demanded area is Camí d'Ur and Camí Ral, with its terraced houses and private gardens. Buyers want single-family houses of 150 sqm and three bedrooms.

Cerdanya is made up of 17 municipalities that can be divided into five areas. The villages with the greatest real estate activity are those equipped with all the necessary services, such as Llívia, Puigcerdá, Bellver and Alp. Prices have remained stable in recent years.

Real Estate Market Trend · Catalonia | 63

The municipality Puigcerdá is the capital of La Cerdanya and the nerve centre of the region. The most popular areas are Lake, Closa de l'Angel and the centre. Services and commerce are the region’s strong points. Most requested properties are 125 sqm houses with a minimum of three rooms. La Solana is an area in Bolvir with one of the most popular municipalities, as it is a summer resort for well-to-do middle-class Catalans. It is home to some of the main residential developments in La Cerdanya, such as the Real Club de Golf Cerdanya, Mas Sallent and La Corona. The small village called El Remei also stands out, where the few existing properties enjoy great tranquillity and exclusivity. The buyer profile in this location seeks the social life and prestige that comes with residing in this area. The demand is focused on single-family houses from 325 to 375 sqm with a minimum of five rooms, and 100% of all purchases are for secondary residences. The fifth territory is the closest to the municipality of Bellver, the sub-region of Batlia. It is characterized by small villages and isolated farmhouses. It is also one of the largest areas of the region but with fewer tourist crowds. Most of the clients who choose this area belong to the middle or upper-middle class. The fashionable areas are the El Pla and Tartera housing developments, along with the small restored houses in the more quiet isolated locations.

64 | Market Report 2019-20 Spain and Andorra

Property Prices in Cerdaña (Data in euros / sqm)

Minimum

Maximum

Average

Puigcerdá

1.650

2.500

2.050

Llívia

2.420

Prats, El Pla

2.540

Bellver

892

1.100

925

Bolvir, RCGC

3650

5.300

4.165

Bolvir, Corona

2.900

3.870

3.160

Bolvir, Pleta

2.150

3.500

2.785

Alp

1.480

2.930

1.670

Fontanals

1.760

2.270

2.243

Guils de Cerdaña

1.700

2.200

1.955

Valencian Community

Valencia

794.288

29.498 €

23.835 €

1.779 €/m²

+3 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Valencia is the third largest city in Spain after Madrid and Barcelona. It has a relatively young population of 794,288 inhabitants, 15% of whom range from 15 to 29 years old, and 30% from 30 to 49 years old. 83% of the population works in the service sector, which is vital for the city’s economy. Industrial activity continues to be an important base, with 11% of the population working at small and medium enterprises involved in paper and graphic arts, wood and furniture, metallic products, and footwear. The decrease in both the real estate demand and in tourism has been felt in the Valencian economy, which, like the rest of the country, has been affected by Brexit. However, foreign demand will continue to drive real estate activity in the Valencian Community throughout 2020. The latest data from the Spanish Association of Property Registrars regarding the third quarter of 2019, show a slight decrease by 0.63% in home sales carried out in the Valencian province, amounting to 29,556 units. On the other hand, the Valencian Community registered the greatest relative real estate activity, measured in the number of buying and selling per thousand inhabitants, 3.83, as compared to the entire country’s average of 2.62 in the third quarter of the year. For the city of Valencia, this ratio was 2.95, which placed it as

66 | Market Report 2019-20 Spain and Andorra

the eighth province in the country with the greatest relative real estate activity. Data from the Spanish Association of Property Registrars also underline the importance of foreign-purchased homes in the Valencian Community. In the third quarter of 2019, the region occupied second place, surpassing the Canary Islands, behind only the Balearic Islands in sales to foreigners, which accounted for nearly 26% of all transactions. The BBVA research service forecasts that the Community's Gross Domestic Product (GDP) will close 2019 with a growth of 2% (above the national average forecast) and 1.4% this year. With regards to property prices, Tinsa data indicate that the average cost of housing in the city of Turia recorded a year-on-year growth of 8.4% in the third quarter of last year, a figure more than 30% lower than the maximum reached in 2007. However, the comparison of the second half of the year with the first does show some containment in the rise in prices. Tinsa places the average profitability of renting a home in Valencia at 4.4% for foreign families looking for a second home.

Districts of Valencia City

Pobles del Nord

Pobles de l'Oest Rascanya

Benicalap

Benimaclet

La Saïdia

Campanar

Algirós Ciutat Vella

El Pla del Real Poblats Marítims

L'Olivereta

Extramurs Eixample

Camins al Grau

Patraix

Quatre Carreres

Jesús

Pobles del Sud

Prices in euros / sqm

1.000 € - 1.500 €

1.500 € - 2.000 €

2.000 € - 2.500 €

2.500 € - 3.000 €

3.000 € - 3.500 €

3.500 € - 4.000 €

4.000 € - 4.500 €

4.500 € - 5.000 €

5.000 € - 5.500 €

5.500 € - 6.000 €

6.000 € - 6.500 €

Camins al Grau

3.035

Poblats Marítims

2.045

La Saïdia

1.650

L’Eixample

2.960

Quatre Carreres

2.035

L’Olivereta

1.590

El Pla del Real

2.690

Extramurs

1.955

Rascanya

1.465

Ciutat Vella

2.605

Patraix

1.845

Jesús

1.280

Benimaclet

2.395

Benicalap

1.740

Campanar

2.365

Algirós

1.705

Real Estate Market Trend · Valencian Community | 67

The city of Valencia is distributed among 19 administrative districts, which are in turn subdivided into 89 neighbourhoods and smaller districts. Engel & Völkers covers the best locations in the capital and the province, grouping them into three large areas: the Centre, made up of Ciutat Vella, Eixample, Extramurs and La Saïdia; the Beach, made up of Pla del Real, Ciudad de las Artes y las Ciencias, Patacona, Malvarrosa, Alboraya, Puig, El Saler as well as municipalities Puzol and Cullera, among others; and the Surroundings, comprised of Paterna, Rocafort, Godella, El Vedat, Bosque, La Eliana and Betera.

Centre

The Centre remains one of the most sought-after areas in the city. However, in 2019 we observed two clearly distinctive shifts: one coincides with the first half of the year, where prices rose by 28%, to give way to a second half of sharp declines in which the market digested the previous excesses. At the end of the year, the average price of a property in this area reached 2,248 euros / sqm, which represents a 9.21% decrease compared to the previous year. The neighbourhoods with the highest demand are Ruzafa and Arrancapins. The former, located in the Eixample district, the most fashionable and exclusive area of Valencia, is very attractive to housing investors and foreign buyers. Arrancapins, on the other hand, located in the Extramurs district, is characterised by being an upper-middle class neighbourhood where prices are more competitive than in the Eixample. The maximum cost of a house in the Centre, which reaches 5,081 euros / sqm, is easily found in Pla del Remei, a district part of the Eixample. However, the highest average price of 3,758 euros / sqm, is registered in El Mercat, which belongs to the Ciutat Vella district. The most affordable prices are in Sant Francesc and Extramurs. The property in highest demand is a 135 sqm apartment with three bedrooms. The profile of the buyer is a Spanish family, although foreign clients account for 30.8% of all operations carried out in the area, with a greater presence of Mexicans last year.

68 | Market Report 2019-20 Spain and Andorra

62% of those interested in buying a house in the centre of Valencia want to acquire their main residence, while 27% are looking for a second home, and only 12% are making an investment. The profile of the seller is primarily made up of Spanish families, compared to the 10.6% of international sellers, among which the British stand out. Last year, Engel & Völkers carried out 25% more Golden Visa transactions in this area.

Property Prices in el Centre (Data in euros / sqm)

Minimum

Maximum

Average

Gran Vía

2.030

3.991

3.016

Pla del Remei

2.907

5.081

3.568

Ruzafa

1.367

3.125

2.300

El Pilar

2.368

2.699

2.487

El Carmen

1.986

3.031

2.481

La Seu

1.465

3.077

2.208

El Mercat

3.494

4.022

3.758

La Xerea

2.857

3.296

3.077

Sant Francesc

1.350

1.816

1.621

Extramurs

1.563

2.514

1.956

Alameda - Costa

The city's largest and most heterogeneous district offers a wide range of properties, from beachfront apartments and houses to flats near the city centre. The average price of housing in this area closed the year at 2,088 euros/ sqm, a 2.9% decrease compared to 2018. The most popular property is a 154 sqm apartment with three bedrooms. 58% of the purchases are for a main residence, 30% for a second residence, and only 12% constitute an investment. The demand comes mostly from families, 34% of which are foreigners, primarily Mexicans and Venezuelans.

The most attractive neighbourhood is Cabanyal, which belongs to the Poblats MarĂtims district, an area in full growth due to its remodelling, and which enjoys the particularity of being by the sea. The changes carried out have made this area more cosmopolitan and urban. The main buyers in Cabanyal are mainly investors, due to the boom in demand for holiday and short-stay tourism, which has led to a considerable increase in prices based on profitability.

Property Prices in Alameda-Costa (Data in euros / sqm)

Regarding the most sought-after type of dwelling by nationality, it is worth noting that flats are in the highest demand from Spaniards (68.5%), followed by French (9.3%) and Russians (4%). With a marked presence of domestic buyers, Spaniards were also those who requested the most houses (64%), although the French accounted for 18% of the purchases of this property, followed by Mexicans (9%) and Germans (9%).

Minimum

Maximum

Average

Albors, AlgirĂłs o La Vega Baixa

1.706

Pla Del Real, Ciudad De Las Ciencias o Patacona

2.019

5.130

2.732

Urbanizaciones de Alto Standing

2.500

3.500

2.800

Trinital, Orriols, Torrefiel, Ayora

1.467

1.703

1.585

Poblaciones de Costa Norte de Valencia

613

1.361

1.035

Poblaciones de Costa Sur de Valencia

1.370

2.595

1.887

899

1.598

1.248

Poblaciones no costeras

Real Estate Market Trend Âˇ Valencian Community | 69

Around Valencia

This extensive territory in the interior of the province offers a wide range of properties which vary according to the different municipalities. The most demanded property is a single-family house of about 240 sqm and three bedrooms, with well-connected transport lines and multiple services. 68% of buyers in these neighbourhoods and municipalities are Spanish citizens, compared to the 32% who are foreigners, of which the French, Swiss and British seek houses while the Chinese opt for flats. The latter buy their homes via Hong Kong because of limited capital outflows. These are the exact areas around the city where Engel & VĂślkers Valencia carried out the most Golden Visa operations in 2019, practically doubling the amount from the previous year. The wide range of prices present in this area goes from an average of 1,330 euros/sqm in Alzira, to 2,567 euros/ sqm in Nou Campanar. However, the average price of a house remained virtually unchanged in 2019 compared to the previous year, standing at 1,325 euros/sqm. The most expensive and highly popular districts are Nou Campanar and L'Eliana, in demand for their extensive services and excellent transport connections. The first neighbourhood, close to the Turia River and Cabecera Park, is a relatively new growing area within walking distance of the airport, port and train station, as well as the bypass that connects to the centre of Valencia. L'Eliana, on the other hand, is 18 km from the capital and only 15 km from the airport. It also has a large shopping centre, El Osito, and extensive green areas.

Price of homes in Valenciaâ&#x20AC;&#x2122;s surroundings (Data in euros / sqm)

Minimum

Maximum

Average

Nou Campanar

1.926

3.091

2.567

L'Eliana

1.727

2.715

2.287

655

2.459

2.095

Vedat-Torrent

1.257

2.106

1.640

Urb. El Bosque

1.387

2.123

1.985

817

1.845

1.330

Godella

1.309

1.995

1.815

La Pobla de Vallbona

1.071

1.746

1.578

Mislata

1.215

2.134

1.550

Betera

Alzira

70 | Market Report 2019-20 Spain and Andorra

Rentals

The rental market in Valencia is influenced by the fact that there is not enough supply for the existing demand. The average price per square metre of flats to rent in the city of Turia in 2019 was 10.6 euros, a 6% increase over the previous year. However, there is a considerable range of prices according to each area, from an average cost of 14.88 euros/sqm and 14.83 euros/sqm in Pla del Real and Ciudad de las Ciencias, respectively, to the minimum of 5.69 euros/sqm registered in Betera.

Price of rent in Valencia (Data in euros / sqm)

Minimum

Maximum

Average

Eixample

5,63

22,64

14,13

Ciudad de las Ciencias

6,33

23,33

14,83

Ciutat Vella

5,56

22,22

13,89

Pla del Real

5,09

24,67

14,88

Extramurs

5,93

22,62

14,27

The area with the most in-demand properties is Ruzafa, located in the Eixample district. It is known for its colorful emblematic neighbourhoods, where you can find Valenciaâ&#x20AC;&#x2122;s most traditional markets.

Playa de Valencia

7,92

15,34

11,63

Betera (Mas Camarena - Torre Conill)

4,57

6,82

5,69

L'Eliana

7,14

Godella - Campolivar

5,33

8,00

6,67

The prized apartment for rent offers 100 sqm and holds three bedrooms. The profile of the tenant is of families looking for apartments, with a strong presence of foreigners, while Spaniards constitute only 43% of the demand. Among the foreigners, an increase in the arrival of Americans stands out. They have gone from being the fourth nationality looking for more homes to rent in 2018 to taking first place last year.

Rocafort - Santa BĂĄrbara

5,50

12,86

9,18

Real Estate Market Trend Âˇ Valencian Community | 71

Castellón

Peñíscola

Castellón Alcossebre

Oropesa Benicasim Castellón Vila-Real Burriana

Castellón

72 | Market Report 2019-20 Spain and Andorra

Castellón

579.962

27.327 €

22.156 €

1.102 €/m²

-1 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Within only a few kilometres, the province of Castellón offers the possibility of going from the sea - it has a 120 km long coast - to the mountains. In fact, it is the second most mountainous province in the country. The service sector carries great weight in the economy. It mainly entails commercial activities, both wholesale and retail, as well as the hotel and catering industries. Of course we shouldn’t forget the importance of the tile industry in the province. According to data from Engel & Völkers, the average price of housing in Castellón last year reached 1,250 euros/sqm, which is an 11% decrease compared to the previous year.

The type of property in highest demand is a 140 sqm single-family house with three bedrooms, which in 64% of the cases is used as a second residence. Spanish families, with a clear preference for a flat or apartment, account for 64% of purchases compared to the 36% of foreigners with a preference for single-family homes. The seller's profile is mostly composed of singles, and in 71% of the cases they are Spanish. Among foreigners, an increase in sales has been noted, led by Russian citizens.

Property Prices in Castellón

The most sought-after areas in the province's real estate market are Peñíscola, Alcossebre, Burriana and Benicasim, all of them spread along the coast. You find the highest average cost in Benicasim, at around 1,930 euros/ sqm, its strong points including beautiful beaches and its proximity to the capital. Vila-Real, on the other hand, is where properties offer the most affordability, with an average price below 1,000 euros/sqm.

(Data in euros / sqm)

Minimum

Maximum

Average

Alcossebre

1.380

2.176

1.735

Benicasim

1.883

1.978

1.930

Burriana

740

895

799

Castellón

1.074

Oropesa

993

Vila-Real

848

Peñíscola

1.243

1.785

1.256

Real Estate Market Trend · Valencian Community | 73

Rentals

The average price of a house to rent in Castellón reached 7.34 euros/sqm in 2019. The 80 sqm, three-bedroom apartment is the most requested property for rent, and the area with the highest demand is the centre of Castellón.

The tenant’s profile is single, and 58% of time Spanish, who is looking for both a flat and an apartment. Among foreigners, there is a growing demand for rental housing by Russian citizens. As for the landlords, they are all Spanish families.

74 | Market Report 2019-20 Spain and Andorra

Price of rent in Castellón (Data in euros / sqm)

Minimum

Maximum

Average

Moncofar

3,59

6,71

3,6

Castellón

3,39

7,25

5,49

El Grao de Castellón

3,69

Benicasim

4,79

25,97

17,01

Costa Blanca

Denia Jรกvea

Moraira

Benissa Calpe

Alfaz del Pi Benidorm

Alicante

Alicante Marina Alta Marina Baja

76 | Market Report 2019-20 Spain and Andorra

Costa Blanca

Alicante

1.858.653

26.673 €

21.818 €

1.513 €/m²

+6,2 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Alicante is the province with the highest relative Real Estate activity in Spain. Good proof of this is the number of sales per thousand inhabitants, a figure that reached 20.02, according to the latest report by the Spanish Association of Registrars. Alicante’s combination of excellent infrastructure, gastronomy, beaches and a superb climate, offer enough attractions to make the province one of the most popular tourist destinations in Spain, and a place of residence for all nationalities, including Germans, French, Belgians, Swiss, Dutch and people from Scandinavian countries.

In 2019, the highest average price was reached in Cabo Huertas with a cost of 3,250 euros/sqm in 2019, an 3% increase over the previous year. The most sought-after property in this neighbourhood is a 300 sqm house with three bedrooms, sea views and a garden. The cheapest cost was in La Font, remaining unchanged since the previous year. In this neighbourhood the demand goes to independent villas with their own garden, swimming pool and good transport connections to the city.

Property Prices in Alicante (Data in euros / sqm)

The most sought-after feature of a property in Alicante is its view of the sea, which is why apartments with a balcony and flats on the beachfront claim the highest demand. The buyer profile is mostly Spanish families, and only in the area of El Campello-Coveta does the demand from foreigners exceed that of citizens. The majority are looking for a second home with the exception of Vistahermosa, where 80% of the buyers intend to acquire their primary residence.

Minimum

Maximum

Average

Centro

1.600

4.500

2.750

Casco Antiguo

1.875

2.790

2.000

Cabo Huertas

1.500

5.000

3.250

Alicante Golf

1.000

3.100

2.050

Playa San Juan

1.780

4.500

2.900

Vistahermosa

1.200

2.600

1.900

La Font

1.000

2.300

1.650

El Campello - Playas

1.000

3.900

2.575

El Campello - Coveta - La Nuza

1.500

3.000

2.250

Real Estate Market Trend · Valencian Community | 77

Rentals

Price of rent in Alicante (Data in euros / sqm)

The dynamic behavior of Alicante’s rental market has been stable in recent years. The average price underwent some moderation and in 2019 a small variation was registered between between 8 and 11 euros /sqm. As with the market for buying and selling, the most expensive properties are located in Cabo Huertas, but there is also a strong demand in very specific areas of the city centre such as the Explanada de España and Avenida Doctor Ramón y Cajal, where prices can reach 20 euros/ sqm. However, the highest cost does not usually exceed 15 euros/sqm except in the areas mentioned.

78 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Alicante Centro

Cabo Huertas

Alicante Golf

Playa San Juan

El Campello - Playas

El Campello - Coveta

Marina Alta

Denia

Property Prices in Denia (Data in euros / sqm)

The kilometres of long beaches and the charm of the town attract home buyers to Denia, where they seek great views of the sea, peace and quiet, and an area with less crowds than in other municipalities. With a profile of mostly Spanish buyers, two areas stand out where international customers account for 90% and 80% of purchases, namely La Sella Golf and Els Poblets-El Verger, respectively. On the other hand, in Pego and Montepego, although there is a German colony, and it is very popular among European retirees, there is also a high percentage of Spanish buyers looking for 200 sqm villas with three bedrooms and views of the sea.

Minimum

Maximum

Average

Centro Urbano

1.800

2.300

2.050

Las Marinas

1.560

2.500

2.030

Las Rotas

2.500

3.000

2.750

MontgĂł

1.600

1.800

1.750

Els Poblets-El Verger

1.250

1.600

1.425

La Sella Golf

1.950

2.100

2.025

Ondara-Beniarbeig

1.000

1.100

1.050

Pedreguer

1.300

1.600

1.450

Pego-Montepego

1.500

1.800

1.650

The urban centre is, however, where the Spanish prefer to make their purchases and live all year round. They are looking for a village house or a 100 sqm flat with three bedrooms, and value having public services nearby.

Real Estate Market Trend Âˇ Valencian Community | 79

Jávea

Property Prices in Jávea (Data in euros / sqm)

Located between Denia and Moraira, on the northern coast of the Marina Alta, Jávea stands out not only for its historical centre but also for its mountainous topography. Unlike nearby flatter towns, Jávea is home to El Montgó, the most outstanding mountain peak in the region with an altitude of more than 750 metres. You also have the municipality’s bay stretching between Cabo San Antonio and Cabo Prim. Housing prices in Jávea have risen by an average of 3% in 2019 to almost 4,000 euros/sqm in residential developments such as Montañar II near Arenal Beach, where maximum costs reached 5,200 euros/sqm, making it the most expensive area in the municipality. On the contrary, the lowest prices are registered in the village or the port, where you can find apartments for 1.500 euros/sqm, a housing typology not as commonly requested in Jávea, where large villas with between 300 and 600 sqm usually attract the highest demand.

80 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Balcón al Mar/ Costa Nova/Portixol

2.800

4.700

3.600

Javea Golf

1.900

2.700

2.300

La Corona/Puchol/ San Antonio

2.370

4.250

3.300

Montañar 1/Via Augusta/El Arenal

2.300

3.300

2.800

Montañar 2

3.500

5.200

3.990

Pueblo/Puerto

1.500

2.000

1.800

Tosalet/Cap Martí/ Adsubia

1.780

3.225

2.300

Montgó

1.890

2.850

2.090

Calpe, Benissa and Moraira Located in the Marina Alta, in the northern part of Alicante, these municipalities in the province facing the Balearic Islands, offer a stunning landscape combining mountains and stunning beaches. The most sought-after properties are 200 to 350 sqm houses with three to four bedrooms, with prices varying from one municipality to the next. In Calpe the price increased by 6% in the last year to 1.926 euros/sqm. Its most sought-after properties are located in residential developments close to the city centre and offer views of the sea. 83% of the demand in Calpe comes from foreign families, although the presence of Polish people has recently grown. Most people are also looking for a second home (67%), compared to those looking for their primary residence (17%). The profile of the seller is 67% foreign families, with an increase in sales by Swedes. Benissa is divided into two areas, inland and coastal. In both areas the demand and supply is made up entirely of foreign families. The highest average price is 3,088 euros/ sqm for homes close to areas with supermarkets or restaurants, distributed throughout different towns in the surroundings. The tranquillity of a rural area is what attracts people to the interior of Benissa, where 100% of the buyers seek their main residence. In Moraira, prices rose by 15% throughout 2019 and it is where you find the greatest demand for housing. In fact, the most popular properties are 350 sqm houses in

Property Prices in

residential developments close to the beach, offering views of the sea. In Cumbre del Sol, a residential area within the community of Benitachell, the most sought-after houses offer views of the sea in an area known for its tranquillity. Foreign families looking for their permanent home comprise the entire demand in the area. An increase in applications from US citizens was registered in the last few months of 2019.

Calpe, Benissa and Moraira (Data in euros / sqm)

Minimum

Maximum

Average

875

2.857

1.927

Benissa Interior

1.440

Benissa Costa

3.088

Moraira

1.637

3.609

2.490

Cumbre del Sol

2.125

2.359

2.267

Calpe

Real Estate Market Trend Âˇ Valencian Community | 81

Marina Baja

Benidorm Considered the capital of the Costa Blanca, Benidorm is the third city with the most hotel rooms in Spain, after Madrid and Barcelona. It is a privileged place with a microclimate attracting both Spaniards and foreigners. The main real estate market can be divided into three main areas: Playa de Levante, Poniente and Rincรณn de Loix. The highest prices reached in Playa de Poniente have an average cost of 2,900 euros/sqm, which can climb to a cost of 4,500 euros/sqm. In the other two areas the average price stands at 2,400 euros/sqm. On the beaches, the most demanded housing typology are apartments between 90 and 120 sqm with two or three bedrooms, preferably penthouses. In Rincรณn de Loix, the demand goes for villas of 250 sqm and four bedrooms.

82 | Market Report 2019-20 Spain and Andorra

In this area, in-demand properties are located in prime developments within a quiet residential environment well-connected to the city centre. Over the past year, the city has seen a notable increase in Russian buyers. Also noteworthy has been the fact that 95% of the buyers do not require financing to make their purchases.

Property Prices in Benidorm (Data in euros / sqm)

Minimum

Maximum

Average

Playa de Levante

1.600

4.000

2.400

Rincรณn de Loix

1.400

3.600

2.400

Playa de Poniente

1.700

4.500

2.900

Finestrat and Villajoyosa

Alfaz del Pi

In the surroundings of bustling Benidorm, an inland village called Finestrat offers four well-differentiated areas in less than 10 kilometres. From the beach of La Cala to the more than 1,000 metres of altitude in Puig Campana, you find the town and its commercial boulevard. This window to the sea, as its name indicates, is one of the villages in Alicante with the smallest population . It is a quiet area where the 170 sqm three-bedroom houses are in highest demand, mainly in Sierra Cortina thanks to the new builds.

Located 49 km away from Alicante city, the municipality Alfaz del Pi bases its economy on tourism, and it is distinguished by a large population of foreigners. In fact, 80% of the real estate demand is made up of foreign buyers, with a noteworthy arrival of Belgians in the last year.

The buyer profile is notably familial and foreign. 70% of villa acquisitions are made by international clients, led by Benelux nationalities, but with a significant increase of Russians registered last year. The remaining 30% are Spanish.

Two types of properties comprise the main market in the area. On the one hand, you get individual homes with an average age of 10 years, a surface area ranging between 150 and 250 sqm, and plots between 800 sqm and 1,000 sqm. On the other hand, you find two or three bedroom apartments between 65 and 80sqm, with an average age of 15 years. Purchases of the first type are for a primary residence, while the second type is for holiday rentals.

40% of buyers want a second home, 35% a primary residence, and 25% are making their purchase as an investment. For its part, Villajoyosa is the municipality where most investment properties are purchased, accounting for 40% of all sales. It also has the highest proportion of foreign buyers, 80%, led by Scandinavians who prefer apartments.

Property Prices in Alfaz del Pi (Data in euros / sqm)

Minimum

Maximum

Average

Playa del Albir

2.300

2.800

2.500

Alfaz del Pi

1.600

2.000

1.800

La Nucia

1.200

1.800

1.600

Polop

1.500

2.100

1.700

In this coastal town known for its colorful houses and rich historical heritage, the type of house claiming the highest demand is a two-bedroom 100 sqm apartment, even more so if it is a penthouse, and if its location is on the beachfront. Prices for such properties are similar to those found in the interior of Finestrat, with maximum amounts reaching 3,300 euros/sqm, although the average cost can drop to 2,350 euros/sqm.

Property Prices in Finestrat and Villajoyosa (Data in euros / sqm)

Minimum

Maximum

Average

Villajoyosa

1.200

3.300

2.350

Finestrat

1.600

3.300

2.250

Real Estate Market Trend Âˇ Valencian Community | 83

Andalucía - Costa del Sol

Málaga Málaga

Milla de Oro Puerto Banús Mijas Marbella

Estepona

Costa del Sol

84 | Market Report 2019-20 Spain and Andorra

Andalucía - Costa del Sol

Málaga

1.661.785

23.248 €

19.479 €

2.213 €/m²

+4,1 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The capital of the Costa del Sol holds one of the most important Real Estate markets in the country. Its wide cultural offer, constant innovation, strong business network and solid infrastructure have made Malaga the target of many investors. In a market where foreigners already account for 25% of purchases, in 2019 prices reached an average of nearly 4,000 euros/sqm in areas such as La Malagueta and the centre, both of which represent the most sought-after areas of the city, as they even exceed the 3,000 euros/sqm seen in areas like El Limonar and Pedregalejo, in the eastern part of Malaga. The massive arrival of the international investor in search of a second home, together with the exclusive new construction projects, has driven the maximum price throughout the centre to 8,000 euros/sqm. Both the historical centre and the beachfront are still suffering from a mismatch between supply and demand, due to the scarcity of land, which means that prices continue to rise in the most popular areas.

Real Estate Market Trend · Andalucía - Costa del Sol | 85

Although price growth is observed throughout the city and forecasts for 2020 point to a more moderate increase in both prices and volume of transactions, there are still areas with properties costing around 2,500 euros/sqm, such as Cerrado de Calderón or Palo.

The most demanded housing typology in Malaga is split according to the buyer's nationality. While foreigners prefer penthouses, apartments with balconies, and detached houses, Spaniards choose flats and terraced houses, with a special preference for new properties. Among foreigners, it is worth noting that there is no one nationality that stands out, but you do see a greater number of Scandinavian, Dutch, Belgian, French, English, Irish and German buyers than Iranians, Swiss or Americans.

Rentals The rental market remains in good shape with supply far below demand, leading to an average price increase of 10% in 2019. The average price of a house to rent already exceeds 10 euros/sqm in almost all areas of the city, to the point that it can reach 18 to 20 euros / sqm in the historic centre, La Malagueta and Limonar. The rental market has also sparked a lot of interest among international customers, taking up more and more of the market share.

Price of rent in Málaga (Data in euros / sqm)

Property Prices in Málaga Minimum

Maximum

Average

Oeste

(Data in euros / sqm)

Minimum

Maximum

Average

Centro histórico / Soho

Oeste

1.800

8.000

2.700

Malagueta

Centro histórico / Soho

3.000

8.000

4.000

Limonar

Malagueta

3.000

8.000

3.900

Cerrado de Calderón

Limonar

2.200

6.000

3.300

Pedregalejo

Cerrado de Calderón

2.000

4.000

2.600

Pedregalejo

2.200

5.000

3.000

Pinares de San Antón / Candado / Palo

1.800

4.000

2.100

86 | Market Report 2019-20 Spain and Andorra

Mijas

The location of Mijas at the foot of the Sierra Blanca mountain range grants privileged views of the Mediterranean Sea, which are highly valued by customers looking for housing in the municipality, mainly foreigners. International buyers account for 65% of the sales transactions closed in 2019 by Engel & Völkers, compared to 35% of Spaniards. Over the last year, the average price has risen by just over 5% to 2,222 euros/sqm, shooting up to a peak of almost 7,000 euros/sqm. The growing demand along the 14 kilometres of the municipality’s coastline, has already triggered prices to peaks of over 15,000 euros/sqm in areas such as Chaparral - El Faro, followed by Calahonda or Cala de Mijas, where they reach maximums of 12,000 and 10,500 euros/sqm, respectively.

Property Prices in Mijas (Data in euros / sqm)

Minimum

Maximum

Average

Calahonda

822

12.092

2.122

Riviera del Sol

780

6.786

1.878

La Cala de Mijas

776

10.571

2.538

Chaparral - El Faro

625

15.556

2.630

Cerrado del Aguila

423

4.468

2.011

Campo Mijas

344

9.032

1.689

Mijas Pueblo

518

6.923

2.222

Mijas Golf

781

6.667

1.896

You can divide the most sought-after type of housing into two groups. On the one hand, you have two-bedroom apartments, and, on the other, three-bedroom single-family homes with more than 100 sqm, in great demand among foreigners and Spanish families.

Real Estate Market Trend · Andalucía - Costa del Sol | 87

Marbella

Synonymous with luxury, and undoubtedly the top holiday destination on the Costa del Sol, Marbella has once again reemerged as a Real Estate investment for both international and national clients. It is the most popular and prestigious destination chosen by Northern European clients as their second home.

The most demanded type of housing are 50 sqm to 1,000 sqm single-family villas close to golf courses and with a view of the sea. In Puerto Banús, La Quinta and San Pedro, the sought-after property is an apartment with surface areas ranging 140 and 160 sqm, distributed over two bedrooms.

The variety of housing typology offered oscillates within a wide range of prices, allowing us to divide the popular Andalusian tourist city into different areas:

Property Prices in Marbella Oeste - Puerto Banús (Data in euros / sqm)

West Marbella – Puerto Banús The western part of Marbella, with Puerto Banús at the head, is one of the most sought-after areas in Costa del Sol, offering renowned developments such as Nueva Andalucía and La Zagaleta. 70% of the buyers in these two areas are foreigners, with an increase in those coming from Northern Europe. Nueva Andalucía and La Quinta are areas coveted by golfers, among which British and Scandinavians stand out. In La Zagaleta, Europe’s Country Club with the highest prestige, the aforementioned nationalities are joined by Germans, French, Belgians and Russians. In Puerto Banús, however, the demand from Arabs and Spaniards is higher.

88 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Benahavis

2.045

4.182

3.441

Guadalmina

4.125

9.157

5.684

La Alquería

2.708

3.027

2.850

La Quinta

2.784

3.690

3.339

La Zagaleta

3.517

6.250

4.450

Los Flamingos Golf

3.322

4.625

3.500

Nueva Andalucía

2.446

9.495

4.846

Puerto Banús

5.958

8.449

4.464

San Pedro Playa

2.647

3.022

3.296

East Marbella

Milla de Oro

Los Monteros, Rio Real Playa and the residential developments Las Chapas and Marbesa continue to be the most exclusively demanded areas in eastern Marbella. In fact, although prices remained stable in 2019, the highest average cost was recorded in Los Monteros at 6,500 euros / sqm, with peaks reaching 25,000 euros / sqm. In contrast, Cabopino claimed the cheapest price at an average cost of 3,000 euros / sqm.

In the five kilometres of coastline known as the Golden Mile, you find the residential developments known as Puente Romano, Sierra Blanca or Marbella Club, which guarantee the buyers privacy, security and exclusivity. The profile of the buyer mainly entails European families looking for a second home, with a preference for modern properties in gated communities. They seek especially large villas in Sierra Blanca measuring up to 700 sqm, and apartments of at least 120 sqm near the beach. In Puente Romano, the most requested housing typology is a 160 sqm apartment located in a resort with a wide array of amenities and services. The area holds the highest price in the Golden Mile, with an average cost of 12,000 euros / sqm.

Property Prices in la Milla de Oro (Data in euros / sqm)

East Marbella’s in-demand properties consist of newly built villas offering views of the sea, located next to the beach. Most of the clients, both buyers and sellers, are foreigners. The purpose of the purchase is to acquire a second home, except in Marbesa and Rio Real Villas, where 50% of purchases are investments.

Property Prices in Marbella Este (Data in euros / sqm)

Minimum

Maximum

Average

Marbesa

3.000

7.000

4.000

Las Chapas

3.500

15.000

4.700

Río Real

2.500

10.000

3.750

Los Monteros

4.500

25.000

6.500

Bahía de Marbella

3.500

8.000

4.500

Elviria

2.000

7.950

3.500

Cabopino

2.500

5.000

3.000

El Rosario

2.000

5.700

4.000

Costabella

2.000

8.000

5.000

Minimum

Maximum

Average

12.000

Altos Reales

3.698

4.712

4.133

Cascada de Camoján

3.900

6.313

5.131

Lomas de Marbella Club

2.449

Marbella City

3.723

5.294

4.042

Marbella Hill Club

2.175

5.646

5.028

Sierra Blanca

4.500

8.000

6.500

Puente Romano

Real Estate Market Trend · Andalucía - Costa del Sol | 89

Estepona

Known as “The Garden of Costa del Sol”, this municipality boasts a renovated old town whose pedestrianization started in 2011, and now totals 120 streets and 16 kilometres. This transformation has not gone unnoticed by private investors and home buyers. Engel & Völkers’ clients are mainly families, 68% foreign and 32% Spanish, except in the Estepona town where local clients account for 55% of all purchases compared to 45% of international buyers.

The strong demand for real estate in the municipality drove prices in 2019 to grow by almost 15%. However, areas such as the Estepona town, Playa Bahía Dorada and Costa Natura, where double-digit growth was recorded, contrast with areas such as Altos de Estepona, Punta Plata and Selwo, where a decrease of between 7% and 2% occurred, in some cases due to oversupply. The most popular housing types are, on the one hand, two-bedroom apartments, and, on the other, three to four bedroom houses of over 120 square metres, located mainly in Selwo, Benamara and Atalaya.

Property Prices in Estepona (Data in euros / sqm)

Minimum

Maximum

Average

821

8.569

2.151

1.230

14.520

2.228

Costa Natura

952

9.850

2.097

Estepona Pueblo

789

4.502

2.052

Playa Bahia Dorada

985

5.879

2.052

Punta Plata

1.020

10.256

2.961

Seghers

1.340

9.546

2.610

892

6.217

2.112

Altos de Estepona Benamara - Atalaya

Selwo

90 | Market Report 2019-20 Spain and Andorra

Northwest Spain

Gijón Oviedo

La Coruña

Asturias

Cantabria

Galicia Pontevedra Vigo

Valladolid

Castilla and León

Galicia Asturias Castilla and León

92 | Market Report 2019-20 Spain and Andorra

Galicia

La Coruña

245.711

28.657 €

23.206 €

2.033 €/m²

+3,8 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Galicia's second largest city is made for taking long wonderful walks. The city is unique for how the central area intersects with the beaches, and how its surrounded by a lovely promenade. La Coruña concentrates half of all business wealth generated in the autonomous community. Enterprises are closely linked to the fashion industry, and the city also has one of the most important ports in Spain. Here are the three areas covered by Engel & Völkers in the city with the Tower of Hercules: Ensanche-centro, Ciudad Vieja-Pescadería and Oleiros-alrededores, premium areas in La Coruña’s real estate sector, which complement each other.

Ensanche is the area with the greatest projection for new families with a high level of purchasing power who want to live in the centre. Its location and multiple services are its strengths. This area is also where the highest prices in the city are reached, although the average cost of a house in this district fell by 5.7% in 2019 to 2,450 euros / sqm. The most demanded properties are apartments between 120 and 160 square metres, with four rooms. 70% are looking for their primary residence and 20% for their second home.

Real Estate Market Trend · Northwest Spain | 93

The Old Town and Pescadería represent the Soho of La Coruña. They have great appeal for young people who want to live in a unique centrally-located neighbourhood. You find a significant presence of investors who acquire their property to rent out. You also have buyers with interests in art and history, looking to live in a particularly unique building. The properties with the highest demand are 100 sqm three bedroom apartments. The average cost of a home in this district was reduced by 4% to 2,200 euros / sqm. In the middle of La Coruña’s bay and only 8 kilometres from the city, Oleiros has become the residential town par excellence. It mainly offers developments with single-family homes and communal facilities, which make it attractive to families looking for peace and quiet. The average price dropped in this area last year by 4% to 1,100 euros / sqm. The most requested properties are 250 sqm houses with four rooms, which in 90% of all purchases are acquired as a permanent home.

Rentals Average rental prices in the city of La Coruña range from 7 euros / sqm in the Old City, where the maximum prices are close to 11 euros / sqm, to 5.5 euros / sqm in Oleiros. The most requested properties to rent in Ensanche and the Old City are apartments. In the former, you have families looking for 100 sqm apartments with three rooms, and in the latter, mainly singles requesting 65 sqm apartments with two rooms. On the other hand, the demand for homes to rent in Oleiros is focused on single-family houses with 190 square metres and four rooms, preferably in the central area. Families make up most of the requests in this area.

Price of rent in La Coruña (Data in euros / sqm)

Property Prices in La Coruña (Data in euros / sqm)

Maximum

Average

Ensanche/Centro

1.900

3.800

2.450

Ciudad Vieja/ Pescadería

1.700

3.600

2.200

730

1.250

1.100

94 | Market Report 2019-20 Spain and Andorra

Maximum

Average

7,5

Ciudad Vieja

10,5

Oleiros

5,5

Ensanche

Minimum

Oleiros/Alrededores

Minimum

Vigo

295.364

26.636 €

21.858 €

1.921 €/m²

+6,8 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Vigo stands out for being the most populated city in Galicia, with nearly 300,000 inhabitants, and for its marked industrial character. According to data from Engel & Völkers, the average price of housing in Vigo last year was 2,900 euros / sqm, a figure that represents an increase of 3.75% over the previous year. The most demanded housing typology is an apartment with 100 square metres and three rooms. The most sought-after areas are Centro, Arenal, Casablanca, Traviesas and Casco Vello. The profile of the buyer is made up of either families or investors. 90% of the demand comes from Spaniards and only 10% from foreigners, which includes Germans, English and Chinese

who have been living in Spain for years. While domestic buyers are looking for houses with three bedrooms and a garage, foreigners opt for single-family homes or charming apartments. On the other hand, 100% of the sellers are Spanish, mostly recently retired people who sell their houses on the beach. 75% of the purchases are made to acquire a primary residence, 20% are investments, and only 5% are for a second home. Engel & Völkers increased operations carried out in Vigo by 30% and this year foresees an increase above 20%.

Real Estate Market Trend · Northwest Spain | 95

Baiona

Rentals

Integrated in the metropolitan area of Vigo, Baiona is an area offering tranquility, proximity to the beach, and great public services, with the average price of properties at 1,600 euros / sqm last year, 7% more than in 2018.

The most valued property for rent in Vigo is located in the central area. It is a flat with two or three bedrooms and an area between 80 and 90 sqm. The profile of the tenant is composed of both families and singles, 70% of whom are Spanish. The price of rent in the central area increased by 5.2% in the past to an average of 10 euros / sqm.

The most requested properties are terraced houses with more than 100 square metres, three bedrooms, and a garden. Spanish families looking for a terraced house as a regular residence represent the buyer profile in the area.

Nigrán Located 10 kilometres away from Vigo and integrated in its metropolitan area, Nigrán has excellent beaches, such as Playa America, which is one of the busiest in the province, or Paxón, among others. The average cost of a property reached 2,300 euros / sqm in 2019. A penthouse of more than 60 square metres and two rooms is the most requested housing typology. All of the demand comes from Spanish families looking for their primary residence.

The beaches and tranquility are the main attractions in Alcabre-Oia-Coruxo-Saiáns, an exclusive area with luxury villas. The property with the highest demand is a four-bedroom 200 sqm house with a garden. The profile of the tenant is of a family, but also football players. 30% of the demand comes from foreigners. The rental price remained stable in 2019 at around 9 euros / sqm. The same trend happened in Nigrán and Baiona, where the cost of rent remained at 8 euros / sqm. The beach is the main attraction of these two locations, where there is no demand from foreign buyers. While in Nigrán clients seek 200 sqm houses with a garden and three or four bedrooms, in Baiona apartments of 90 sqm with three bedrooms claim the most requests.

Price of rent in Vigo, Baiona and Nigrán Property Prices in Vigo, Baiona and Nigrán

(Data in euros / sqm)

(Data in euros / sqm) Minimum

Maximum

Average

Minimum

Maximum

Average

Centro de Vigo

Centro - Arenal

2.700

3.200

3.000

Casablanca

1.700

2.100

1.800

Alcabre/Oia/ Coruxo/Saiáns

Traviesas

1.600

1.900

1.800

Baiona

Venezuela/Plaza Elíptica

2.000

2.600

2.400

Nigrán

Casco Vello

1.900

2.600

2.300

Baiona

985

4.048

1.595

Nigrán

1.415

6.875

2.300

96 | Market Report 2019-20 Spain and Andorra

Pontevedra

83.029

26.108 €

21.452 €

1.552 €/m²

+1,7 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Pontevedra stands out as one of the most comfortable European cities to live in. In 1999, the city began a process of transformation that has turned it into a world reference for urban planning and sustainable mobility policies. Most of the urban centre of Pontevedra is pedestrianised and the city boasts an absence of fatal car accidents. This is facilitated by the fact that it is a compact city of six square kilometres, the longest journey being half an hour on foot, with almost all neighbourhoods only a 15 minute walk from the centre.

According to data from Engel & Völkers, the average price of a property in Pontevedra last year was 1,304 euros / sqm, 2% more than in 2018. The most demanded type of housing is an apartment from 120 to 150 sqm with two or three bedrooms. The most popular areas are A Parda and the city centre, both in demand due to their price, location and proximity to public services. Most of the buyers are Spanish families and couples.

Real Estate Market Trend · Northwest Spain | 97

Poio

Rentals

The same type of buyer profile is found in Poio, a town distinguished by its almost 20 km of coastline. It offers different types of beaches, tranquility and good transport services. The average cost of a property in this area underwent a strong 31% increase to 1,671 euros / sqm. The most demanded property is the 100 sqm apartment with two bedrooms, and the most requested locations are the Combarro and San Salvador de Poio districts.

Pontevedra offers more affordable average rental prices than other big cities in the province despite having registered a 7% increase last year. In 2019, the average cost was 5.6 euros / sqm, slightly below the 6 euros / sqm cost found in Poio.

Sanxenxo

The demand for flats to rent in Pontevedra goes to apartments between 70 and 80 sqm with two to three rooms. While in the city the most requested area is the centre, in the municipality of Poio the most sought after areas are Combarro and San Salvador. In both Pontevedra and Poio the demand comes from couples and singles.

A large part of the attraction in the Sanxenxo municipality is the urban beach called Silgar. Prices in this area registered a drop of 11% last year to 1,424 euros / sqm. Buyers are looking for apartments of 70 to 80 square metres with two or three bedrooms, with a central location on Paseo Silgar because of its views. The demand here is made up of families and investors, with 45% of home purchases intended as an investment and 50% for a second home.

Salnés and Morrazo In Salnés and Morrazo, the demand comes from singles, couples and investors. In Salnés, buyers look for apartments located in Vilagarcía and Vilanova, ranging from 70 to 80 square metres and with two to three bedrooms. In Morrazo, the most requested properties are flats and houses from 80 to 200 square metres and with two to four bedrooms. 20% of the demand in this town is made up of foreigners looking for single-family homes. Price of rent in Pontevedra y Poio (Data in euros / sqm)

Property Prices in Pontevedra Minimum

Maximum

Average

Pontevedra

8,5

5,6

Poio

7,7

(Data in euros / sqm)

Minimum

Maximum

Average

906

2.564

1.304

Poio

1.419

1.923

1.671

Sanxenxo

1.354

1.494

1.424

Salnés

1.019

1.384

1.197

739

1.476

1.043

Pontevedra

Morrazo

98 | Market Report 2019-20 Spain and Andorra

Asturias

Oviedo - Gijón

1.022.800

26.084 €

21.614 €

1.342 €/m²

-1,1 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The Principality of Asturias has Oviedo as its capital and Gijón as its most populated municipality. With an economy centred on public services, the city of Oviedo is the commercial, religious, university and administrative centre of the Principality. Gijón, on the other hand, has a markedly industrial character in which tourism has been gaining more prominence in recent years. The areas marketed by Engel & Völkers in Asturias registered significant price increases in 2019, ranging from 30% in the centre of Gijón and Somió, to 21% in the centre of Oviedo. The centre of the two big cities have the highest prices. In Gijón, a maximum amount of 3,000 euros / sqm was reached. The upward pressure on prices is owed to the high demand for housing in the heart of the city and to the low supply of both second-hand and new homes. The most demanded typology are apartments of a little more than 100 square metres and three rooms, preferably near the Begoña street, the Nautico and the San Lorenzo beach.

The area with the greatest demand in the municipality of Gijón is Somió, one of the most exclusive neighbourhoods in the city. This residential area has numerous parks and facilities where you can practice sports, and it is where the largest volume of operations by value were carried out last year. However, the average price per square metre is more contained due to the larger houses. The most sought-after properties are 480 sqm houses with four rooms and a plot. As far as the capital is concerned, Oviedo has a larger offer for housing than Gijón. The most requested property is a 195 sqm, three-bedroom apartment located in the centre or in Campo de San Francisco. The demand is made up of families, 80% of whom want a primary residence and 20% of whom are making an investment.

Property Prices in Asturias (Data in euros / sqm)

Gijón Centro Somió Oviedo Centro

Minimum

Maximum

Average

1.156

3.026

1.872

682

2.049

1.304

1.221

3.978

1.788

Real Estate Market Trend · Northwest Spain | 99

Castilla and León

Valladolid

298.412

27.420 €

22.700 €

1.492 €/m²

+1,3 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The capital of Castilla y León, Valladolid, has excellent transport connections, from its airport, the AVE high-speed train to an important network of motorways and highways. Also known as Pucela, it is home to the seats of parliament and the Junta of Castilla and León (governing body). It is the most populated city in the region, with nearly 300,000 inhabitants, although its area of socio-economic influence reaches more than 600,000 inhabitants.

According to data from Engel & Völkers, property prices last year in Valladolid shifted from 2,491 euros / sqm in the central area, 6% more than in 2018, to 1,550 euros / sqm in San Juan-Batallas-Circular-Vadillos. The offer of “super homes”in the centre has shot up, with properties reaching over 4,000 euros / sqm in areas like Acera Recoletos and Miguel Íscar located in the outskirts. This district receives its demand from singles looking for two-bedroom 85 sqm apartments, with 65% of all purchases are for a primary residence, while 25% are investments. The biggest increase in prices took place in Villa del Prado, where they rose by 12.1% to 2,298 euros / sqm. This area has established itself as one of the city’s most fashionable districts, surpassed only in price by the centre. It is a young, quiet and quality neighbourhood, with garden areas, parks and large roads. On the other hand, the cost of housing was reduced by 8% in San Juan-Batallas-Circular-Vadillos, due to a drop in demand directly proportional to the increase in the supply of new properties in other neighbourhoods of the capital.

100 | Market Report 2019-20 Spain and Andorra

In areas such as Santa Ana, Covaresa and Parquesol, the marked drop in the minimum price is due to the high volume of single-family homes in stock, their stagnation caused by a lack of demand. Only the last two in the list manage to contain the downward trend due to the increase in the supply of new properties and the increase in the price of multi-family homes. The most demanded type of housing is an apartment between 65 and 110 square metres with two to four rooms. Only in the Las Villas-Santa Ana neighborhood is the most requested property a single-family home of 250 square metres and four rooms.

Rentals The highest cost for rent in Valladolid was reached in 2019 in the Santa Ana district, with an average price of around 8.87 euros / sqm, a figure representing a 10.7% increase over the previous year. Rental prices increased throughout the city except in Covaresa, where they fell by 10.8% and where they also registered a minimum of 3 euros / sqm. Apartments from 65 to 85 square metres, with two or three rooms, are the most popular to rent in the Pucelan city. Singles choose the centre and the Santa Ana area to rent a house, while students take a large part of the demand in San Juan due to its proximity to the university.

Price of rent in Valladolid (Data in euros / sqm)

Minimum

Maximum

Average

Centro

Covaresa

Santa Ana

4,5

11,5

Parquesol

San Juan

7,5

Paseo Zorrilla

Villa del Prado

Property Prices in Valladolid (Data in euros / sqm)

Minimum

Maximum

Average

Centro

1.930

4.485

2.491

Covaresa/ Parque Alameda

1.215

2.942

1.703

Las Villas/Santa Ana

1.451

2.362

1.788

PÂş Zorrilla/Cuatro de Marzo/C.Grande

1.425

3.579

1.706

Parquesol

1.150

2.984

1.735

S.Juan/ Batallas/ Circular/Vadillos

1.043

2.418

1.550

Villa del Prado

1.651

3.512

2.298

Real Estate Market Trend Âˇ Northwest Spain | 101

Northeast Spain

Hondarribia - Irún

Bilbao

San Sebastian

País Vasco Vitoria - Gasteiz Pamplona

Navarra

País Vasco Navarra

102 | Market Report 2019-20 Spain and Andorra

The Basque country

Vitoria - Gasteiz

251.774

20.643 €

17.245 €

2.232 €/m²

+6,7 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The administrative capital of the Basque Country and seat of its Parliament, Vitoria is a city designed for people to live comfortably. Replete with natural spaces comprising the Green Belt, it also holds one of the best preserved medieval quarters in the peninsula. The minimum and average property prices in Vitoria registered slight increases last year, although the maximum prices remained stable. The central area recorded the greatest increase (12.5%) in the average cost of housing, reaching 3,200 euros / sqm, followed by a rise of 9% in Avenida-San Martín, and 5% in Lovaina-Aranzabal. It is in the latter district that the properties reached the highest average price at 4,000 euros / sqm.

The only area where prices fell was in Armentia, where a 7% decrease to 2,800 euros was registered. This decline was owed to the fact that the shortage of demand does not cover the ample supply. Properties from inheritances make up a large part of the flats for sale. The seller profile also includes older people who leave their homes to acquire smaller residences or those simply looking to change their location. The taller flats with a south or west orientation, between 130 and 150 square metres, with a minimum of three rooms, claim the most demand in the central area of Vitoria and in Desamparados. The streets Prado, Manuel Iradier and the first addresses on Florida street, together with the squares of Amárica and Fueros, comprise the most sought after properties in the heart of the city, while the Plaza de Santa Bárbara is the most requested in Desamparados. In both areas, the demand comes from families with school-age children or older people who want to have all the necessary services nearby.

Real Estate Market Trend · Northeast Spain | 103

The three-bedroom properties of 100 to 120 square metres, with direct garage access, good orientation and height, are the most sought-after homes in Leuven-Aranzabal, Avenida-San Martín and Txagorritxu. The proximity to schools and to the city centre, together with its large parks, are the most valued features in these areas popular among the elderly and families with school-age children. In Batán-Mendizorroza, Armentia, Zabalgana and Aretxabaleta, the highest demand goes to residential developments with green areas, to houses with three to four rooms and a garage, with a collective surface area of 100 to 160 square metres. Families with children, elderly people and investors drive the main demand in Batán-Mendizorroza, whose greatest appeal is its proximity to the Prado park. Armentia, on the other hand, stands out as a prestigious residential area. Zabalgana has high-quality semi-new homes and is in great demand from people between the ages of 25 and 40. A similar age group makes up the buyer profile in Aretxabaleta, a newly built residential area with large balconies and 10 minutes from the city centre.

104 | Market Report 2019-20 Spain and Andorra

Property Prices in Vitoria (Data in euros / sqm)

Minimum

Maximum

Average

Centro

2.400

5.000

3.200

Desamparados

2.050

4.000

2.700

Lovaina-Aranzabal

2.500

6.000

4.000

Avenida-San Martín

2.500

4.200

3.300

Batán-Mendizorroza

1.900

5.500

3.200

Armentia

1.900

3.900

2.800

Txagorritxu

2.200

2.800

2.500

Zabalgana

2.700

3.200

2.900

Aretxabaleta

3.000

4.500

3.800

San Sebastián

187.415

25.141 €

20.486 €

4.540 €/m²

+6,2 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Donostia has a privileged geographical enclave and good transport infrastructures, soon to be joined by the highspeed train that will connect Madrid to Paris. We must add the popularity that the Basque gastronomy has acquired worldwide, leading to the creation of a reference centre for innovation and research in the last decade, the Basque Culinary centre (BCC). As a result, San Sebastian has become the city with the most Michelin stars per inhabitant. The great beauty of the city lies in its perfect combination of sea and mountains, and its traditional and vanguard architecture. It is also attractive because of its size, some 187,000 inhabitants, which makes it a comfortable, clean and safe city. Important cultural events, such as the International Jazz Festival or the International Film Festival, have led to an increase in international luxury tourism. Donostia-San Sebastián has become a leading tourist city. Proof of this is in the urgency with which the legislation on tourist flats has been regulated and the exponential increase in the construction of new hotels, which will exceed ten between 2018 and 2019, and whose trend is expected to continue in 2020.

This increase in tourism employment, which has exceeded 80% on average per year, together with the boost given to the Gipuzkoan industry over the last two years, has generated longer-term accommodation and, consequently, an increase in rental and property acquisition. All of this means that the purchase of a property in San Sebastian is a very profitable investment with a tendency to increase prices. This has caused repercussions for the increase in sales along with the recovery and stability of values in the sector. Property prices rose in all of San Sebastian’s neighbourhoods in 2019, from 8.6% in Ondarreta-Igueldo to 1% in Miramón.

Real Estate Market Trend · Northeast Spain | 105

The areas with the highest value per square metre are those covering the entire perimeter of San Sebastian Bay. The maximum average price was reached in Zubieta-Miraconcha at 10,200 euros / sqm, 2% more than in 2018. Behind it is the centre with an average cost of 8,325 euros / sqm, a 4% rise. As we move inland, the price of the houses gets lower. However, as it is one of the most expensive areas in Spain, this decrease is not entirely significant.

Houses are the most popular type of property in Ondarreta, Miramรณn, Berio and Aiete. In Aiete, buyers look for three-room single-family homes with a minimum of 90 square metres, and in Miramรณn, a four-room unit with a maximum of 350 square metres.

Property Prices in San Sebastiรกn (Data in euros / sqm)

The buyer profile is made up of Spanish families, with the greatest presence of foreigners in the Centre and Gros neighbourhoods, where they represent 20% of all the clients. The majority of the buyers acquire a primary residence. The areas chosen by those looking for a property to invest in are Miraconcha, the Centre, Gros and the Old Town. In these areas, apartments attract the highest demand. Their typology varies from 150 to 300 square metres with three to four rooms, which are in demand in Miraconcha, to apartments of 70 to 130 square metres with two to four rooms, in demand everywhere else.

106 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Zubieta-Miraconcha

9.200

11.200

10.200

Centro-ร rea Romantica

6.150

10.500

8.325

Ondarreta-Igueldo

4.300

7.650

5.975

Gros

6.400

8.300

7.350

Parte Vieja

5.900

7.500

6.700

Miramรณn

4.000

7.100

5.550

Berio

5.200

7.000

6.100

Aiete

4.730

6.165

5.448

Aretxabaleta

3.000

4.500

3.800

Hondarribia - Irún

Less than 25 km from the capital of Guipúzcoa, San Sebastián, and close to the border with France, Hondarribia and Irún are two municipalities steeped in history. Hondarribia has managed to preserve its great natural and historical heritage, and it represents a holiday destination par excellence. On the banks of the Bidasoa River, Irún is one of Spain’s main border crossings with France, which gives it undeniable importance as a commercial, railway, road and logistical hub. Both the Hondarribia and Irun real estate markets are homogeneous and stable in terms of prices. In general, prices between 2018 and 2019 only saw a slight change. This invariable market offers a magnificent investment opportunity, as it generates high returns and security. The valued properties in Hondarribia are those close to the sea, preferably with good views. The mountain village offers few possibilities to build in these coastal areas, so the offer is limited to what is available. Therefore, the centre with views of the sea has the highest average price at 5,500 euros / sqm. The in-demand areas are the Paseo Miramar and Paseo Butrón, as well as the private developments. Here, families are looking for houses or apartments from 60 to 170 square metres, with two or three bedrooms. The most demanded properties in Irun are the comfortable quality homes for families located in Mendibil, the centre or Palmera-Montero. The typology is of apartments measuring from 80 to 110 square metres, with two to three rooms. 90% of all purchases go to a primary residence.

Property Prices in Hondarribia and Irún (Data in euros / sqm)

Minimum

Maximum

Average

Hondarribia Norte

3.000

4.500

3.500

Hondarribia Centro (Vista Mar)

5.000

6.500

5.500

Hondarribia Centro

3.000

4.600

3.800

Hondarribia Sur

2.500

3.700

2.800

Golf Jaizubia

1.800

4.900

2.600

Irún

1.800

4.900

2.700

Rentals The offer of long term rental properties is limited in Hondarribia. Focused on tourism, in the summer months the town attracts a large demand from vacationers willing to pay high amounts of money to rent properties near the beach as well as luxury villas in both the Golf area and the Campiña area. In Hondarribia, families and singles are looking for two to three bedroom apartments from 80 to 120 square metres. The rental market is more varied, with a large demand from American and Swiss clients. In Irún the situation is different. Rent comes mainly from clients looking for a primary residence. The supply is much lower than the requests, as there is a high demand for low-middle-range flats for workers. It should also be noted here that 40% of all operations are carried out by foreigners.

Price of rent in Hondarribia and Irún

The profile of buyers in both Hondarribia and Irún is of small families (two-four members), who have different but complementary needs (location, proximity to services, beach, etc).

(Data in euros / sqm)

Minimum

Maximum

Average

Hondarribia

Irún

Real Estate Market Trend · Northeast Spain | 107

Bilbao

346.843

21.245 €

17.556 €

2.931 €/m²

+2,5 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

The capital of the Biscay province has an area of 41.6 square kilometres and an important transport infrastructure connecting it to the main capitals of Europe. The city is the heart of a metropolitan area with more than one million inhabitants, the sixth largest in Spain. It is the main axis of the province’s economic and social development, and a driving force in its modernization. The real estate market in Bilbao continues to be stable. Although it is true that between 2000 and 2008 prices underwent a notable increase, after a decrease of approximately 20%, no significant variations have been registered. The average cost of a home in the capital of Biscay switched in 2019 from the maximum recorded in Abandoibarra at 5,500 euros / sqm, to the 3,700 euros / sqm reached in Indautxu. The latter is the only area to register a drop in prices in 2019, specifically by 3.8%. The biggest increase was noted in the central district, with a rise of 6.9%. Couples between 40 and 50 years old, who have children, are looking for spacious flats from 120 to 180 sqm. They normally choose the neighbourhoods Indautxu and Ensanche. The city’s most emblematic buildings, unique historic properties, are the main attraction of Bilbao's Ensanche, where a large number of homes for sale come from inheritances, and where the popular area is Plaza Jado. In Indautxu, which stands out for its commercial and service offer, the popular street to live on is Estraunza.

108 | Market Report 2019-20 Spain and Andorra

Located next to the estuary and the site of the Guggenheim Museum, Abandoibarra stands out for having become the axis of the city’s urban regeneration, with its quality 10-year-old constructions. Families with high purchasing power, sportsmen, lawyers, doctors, and more, comprise the buyer profile. They seek three-bedroom 140 sqm homes.

A wide range of leisure activities coupled with the city’s traditions are of great appeal in Bilbao's Old Town, where the demand comes from young couples without children, looking for a two-bedroom 100 sqm flat. The Plaza Nueva is the neighborhood’s hot spot.

Rentals Bilbao has undergone an urban transformation that began in the 1990s, by changing its industrial character, rehabilitating emblematic parts of the city, recovering the area around the estuary, and creating new transport infrastructure such as the underground.

Property Prices in Bilbao (Data in euros / sqm)

Minimum

Maximum

Average

Abandoibarra

4.900

6.800

5.500

Indautxu

3.300

4.200

3.700

Ensanche

3.900

4.900

4.100

Casco Viejo

2.000

3.500

2.500

One of the great icons of this “New Bilbao” is the Guggenheim Museum, and it is precisely in this area that Abandoibarra registers the highest rental price in the city, which, last year, reached 16 euros / sqm, 6.6% more than in 2018. The most requested place in this neighbourhood is Plaza Euskadi. As with purchases, properties with the highest demand for rent are the 140 sqm three-room flats. In 2019, the Ensanche was the district that registered the greatest rise in prices, a 25% increase to 15 euros / sqm. While the cost remained unchanged in the Casco Viejo and Indautxu, the latter is where the lowest price was reached at 12 euros / sqm.

Real Estate Market Trend · Northeast Spain | 109

Navarre

Pamplona

Pamplona, the capital of the Autonomous Community of Navarre, is a historic gateway to the Iberian peninsula, and a crossroads of cultural, historical and economic paths. Located along the Camino de Santiago, and famous worldwide for its San Fermin festival, its walled Renaissance city is an undeniable European reference. In addition to all this, its traditional gastronomy based on the high quality of its local product, together with a varied and extensive cultural offer, make Pamplona an important city for national and international tourism. Pamplona is the financial, commercial and administrative centre of Navarre. It is the seat of the government’s autonomous and territorial administrative institutions. The city has an important nucleus of industrial activity and two important universities: the Public University of Navarre and the University of Navarre. The average price of a home in Pamplona was 198,000 euros in 2019. The average cost of the properties marketed by Engel & Völkers last year reached 2,411 euros / sqm, which represents an increase of 25.7% over 2018. All of the city’s districts registered price increases, especially Soto Lezcairu, where the average price reached 2,800 euros / sqm. The smallest increase was recorded in Mendebaldea, which rose to 2,700 euros / sqm. Roncesvalles street in the 1º Ensanche is where properties reached the highest price, which stood at 3,700 euros / sqm. Afterwards, the Paseo Sarasate in the Casco Viejo took second place, with an average cost of 3,400 euros / sqm, followed by Monte Monjardín in the 2º Ensanche, with 3,300 euros / sqm.

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With regards to flats, the typical property marketed by Engel & Völkers in the city has between 120 and 200 sqm, three to four bedrooms, two bathrooms, an excellent location, a garage and storage room. Its average price is between 300,000 and 550,000 euros. For their part, the single-family homes, mostly villas located in the surroundings, have an average price between 350,000 and 600,000 euros, surfaces between 300 and 350 sqm, and a plot of up to 900 sqm. 90% of the buyers are Spanish, compared to 10% of foreigners, of which French, British and German buyers stand out. Property Prices in Pamplona (Data in euros / sqm)

Minimum

Maximum

Average

Casco Viejo

1.500

4.500

2.200

1º Ensanche

2.200

4.500

2.900

2º Ensanche

1.800

3.500

2.500

Soto Lezcairu

2.200

3.800

2.800

Iturrama

2.200

4.000

2.900

Mendebaldea

2.300

3.300

2.700

Barañain

1.800

2.800

2.400

San Juan

1.700

3.000

2.200

Berrioplano / Artica

1.500

2.300

1.700

Canary Islands

Tenerife

112 | Market Report 2019-20 Spain and Andorra

Tenerife

Costa Adeje

47.869

21.912 €

18.429 €

2.573 €/m²

+0,8 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Located in the southwest of Tenerife island, Costa Adeje is one of the most visited tourist destinations in Europe thanks to its more than 26 km of coastline distributed among 17 beaches. It offers one of the most modern hotel networks in Europe, large shopping centres, and some of the most renowned theme parks in the Canary Islands, such as Siam Park. The average price of the houses commercialized by Engel & Völkers in Costa Adeje, goes from the 2,100 euros / sqm registered in the Los Gigantes-Puerto Santiago area, to the 6.000 euros / sqm reached in Golf Costa Adeje.

Abama Resort, a luxury residential area with hotel service, is another of the most sought-after areas in southernTenerife. The prices here reached 6,500 euros / sqm last year, which is 13% more than in 2018. The 150 sqm apartments with two bedrooms are in the highest demand. Again we see that foreigners comprise the majority of the property buyers and sellers. 70% of the purchase goes to a second home, while 30% are investments. Abama has several projects underway, such as Los Jardines de Abama, Villas del Tenis and Las Atalayas.

Golf Costa Adeje is one of the most exclusive areas in the south of Tenerife. It reached the biggest price increase in the last three years with an increase of approximately 20%. Macaronesia Avenue and Las Palmitas, next to Samarin Street, are the most demanded areas in the high standing sector. Buyers in this area are foreign families looking for houses of approximately 250 sqm with a minimum of four rooms. 90% of the buyers seek to acquire a second residence, while 10% are making an investment.

Real Estate Market Trend · Canary Islands | 113

The demand in Costa Adeje, where the price of the property marketed by Engel & Völkers has increased by 8.5%, is focused on two-bedroom 100 sqm apartments, with districts Playa del Duque, Jardines del Duque and La Caleta claiming the highest demand. Foreign families account for 90% of the purchases, with a greater presence of Belgian, German, Austrian and Swiss nationalities. Last year saw a strong growth of Polish buyers. Flats at a minimum of 80 sqm with one or two bedrooms attract the most demand in Adeje, Los Cristianos and Palm Mar. The latter two are of interest to both foreign residents and Spanish citizens. 20% of the buyers acquire their primary residence in these areas, while in Playa de las Americas, a more touristic area, more purchases are made as an investment in holiday apartments. The most requested properties in San Eugenio-Caldera del Rey, Roque del Conde-El Madroñal, Los Gigantes-Puerto Santiago and Callao Salvaje-Playa Paraíso, are the terraced and detached houses of approximately 100 sqm with two or three bedrooms.

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Property Prices in Costa Adeje (Data in euros / sqm)

Minimum

Maximum

Average

Costa Adeje

2.100

6.684

3.800

Golf Costa Adeje

4.500

8.000

6.000

Roque del Conde/ El Madroñal

1.700

4.400

2.800

Palm Mar

1.600

4.000

2.300

San Eugenio/ Caldera del Rey

2.000

5.000

2.500

Abama Resort

5.600

7.800

6.500

Los Gigantes/ Puerto Santiago

1.600

4.600

2.100

Callao Salvaje/ Playa Paraíso

1.900

3.900

2.500

Playa de Las Américas

2.400

5.000

3.400

Los Cristianos

2.100

8.000

3.400

The Balearic Islands

Menorca

Mallorca

The Balearic Islands Ibiza

The Balearic Islands

116 | Market Report 2019-20 Spain and Andorra

The Balearic Islands

The real estate market in the Balearic Islands has maintained its positive and stable evolution. This stability is underlined by the balance between supply and demand. In the best locations, demand often exceeds supply in terms of high-quality, modern and reasonably priced properties. The Balearic Islands attract clients with high purchasing power and in Mallorca there is a growing interest from wealthy buyers. According to the Ministry of Development, the total sales volume in 2019 reached the expected result of some 4,000 million euros, in line with the figures from the last three years.

The high-end average prices, although among the highest in Spain, remain stable. This, again, emphasises the strength of the Balearic Islandsâ&#x20AC;&#x2122; property market, a driving force for their economic growth. Many factors, such as continued investment, indicate that the islands will maintain their appeal to international clients.

Real Estate Market Trend Âˇ The Balearic Islands | 117

Palma de Mallorca

Palma de Mallorca is booming. The apartment market is still on the rise. The Old Town and Genoa are the main locations, with average prices of 800.000 euros in Genoa, and between 700.000 and 800.000 euros in Old Town. Around Playa de Palma, the average cost of apartments stands at 400.000 euros. The apartments are in high demand, although townhouses are popular. Portixol, Es Molinar and Ciudad Jardín offer interesting investment opportunities, with average prices between 1.5 and 2 million euros. Engel & Völkers has a wide range of clients: families, couples and entrepreneurs. They are mainly looking for penthouses and apartments with a terrace and balcony, which are either new or renovated properties. Buyers increasingly value sustainable and environmentally friendly architecture.

Palma Surroundings & Son Vida Son Vida is associated with exclusivity, security and peace of mind. In the surrounding area you will find traditional villages such as Establiments, Esporles and Puigpunyent, which are in increasing demand from international buyers. The profile of Engel & Völkers clients in this area is made up of families and people passionate about sport. Most of them come from German-speaking countries, followed by British, Scandinavian and Spanish ones. The area’s high-quality villas with avant-garde architecture are sold within six months of their construction. Especially popular locations are on the golf course or those with sea views. Son Vida is the most coveted district in Palma for those acquiring a villa, whose average price is 4.7 million euros. In the surrounding areas, such as Puigpunyent, Establiments and Esporles, average prices for villas and country estates drop to 2 and 2.5 million euros.

Southwest Mallorca This part of the island, near Palma, has a unique infrastructure. Port Andratx has developed a special dynamic among clients with high purchasing power, establishing a stable high average price level of over 4.3 million euros for the villas. The average cost of villas and houses in Camp de Mar, Portals and Bendinat is between 2.8 and 4 million, while prices in Santa Ponsa remain stable at between 1.8 and 2.8 million. In rural areas such as Es Capdellà, properties cost between 1.4 and 1.8 million euros. The main areas in the south west for those wanting to buy flats and apartments are Bendinat and Port Andratx. In Bendinat average prices remain at 800.000 euros.

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West Mallorca Authenticity, culture and a traditional character are what attract buyers in West Mallorca. The clients of Engel & Völkers in this area are mostly British, and clients with high purchasing power are increasing. Properties with outdoor facilities, a swimming pool and great views are the most sought-after. The prices of villas and estates remain stable. George Sand, Deià and Port de Sóller have an average price of 3.5 million euros. Valldemossa, Estellencs and Banyalbufar (for properties with lots of land and views), average prices range from 2.5 to 3 million euros. In Fornalutx, Biniaraix and Sóller, houses and properties reach prices between 1.3 and 2.5 million euros, and there are opportunities below one million in Valldemossa. The apartments in Puerto de Sóller are the most expensive in the area, with average prices of 450.000 euros, while the most affordable can be found in Valldemossa, starting at 310.000 euros.

North Mallorca

Northeast Mallorca

The coastal towns and historical villages contrast with the mountains and the natural park S'Albufera. Traditional Mallorcan estates with modern facilities, as well as seafront apartments and villas, lead the demand. Properties with a tourist rental licence are in great demand by investors.

Buyers in this part of the island are looking for scenery and tranquility. Couples and families buy property between Colònia de Sant Pere and Porto Cristo, both for holiday use and for extended stays. There is a particular demand for modern properties with higher prices and an excess demand for high-quality penthouses.

The area offers a wide range of villas and estates. In

In the best locations, around Colònia de Sant Pere and

Formentor, due to the few properties available on the market, average prices are up to 5.7 million euros, however some houses are more expensive. The areas around Alcúdia and Pollensa have stable prices, between 1.5 and 2.5 million euros. Rural areas such as Búger and Campanet offer a good and stable quality / price ratio, with prices between 1.1 and 1.5 million euros. The apartment market in Puerto de Pollença, Alcanada and Puerto de Alcúdia remains at a stable level with prices starting at 400.000 euros.

Artà, average house prices stand at around 1.7 million euros, with the possibility of rising. The same applies in the coastal area between Cala Mesquida and Canyamel, as well as in Manacor; here the average prices are between 1.5 and 1.7 million euros. Buyers can find apartments even in the best locations, such as Colònia de Sant Pere or the village Artà at average prices of 350.000 euros.

Real Estate Market Trend · The Balearic Islands | 119

Central Mallorca

South Mallorca

The proximity to Palma, the views of the Sierra de Tramuntana mountains and the mixture of a rustic and modern lifestyle, represent the area’s main attractions, where primarily German customers are looking for a second home. New buildings with modern architecture, good views and high quality construction draw the greatest demand.

South Mallorca takes good advantage of its proximity to Palma airport and the city centre. Due to the area’s greater appeal, prices have risen and there is a clientele with increasing purchasing power.

The Santa Maria area is the most popular due to its proximity to Palma. Its average housing price is at 1.8 million euros. Inland villages in the areas, such as Binissalem, offer great value for their cost, with average prices between 1.2 and 1.6 million euros.

The preferred locations are still by the sea, near Cala Blava and Son Verí Nou, where the villas can be purchased at an average price of 1.85 million euros. In the areas adjacent to Maioris Décima and Puig d'en Ros, prices are expected to rise from the current average of between 1.4 and 1.5 million euros. Elsewhere on the coast, such as Cala Pi, properties can be acquired for an average price of around 1.4 million euros.

Rentals The change in the tourist rental law has had a positive effect on long-term rentals. Once again, more and more properties are being offered for long-term rental, which slows down the constant increase in prices, balancing supply and demand. Interest in rental property from buyers and investors has increased significantly. In many areas, foreign buyers are looking for licensed rental properties with the intention of earning income while using the properties themselves. Engel & Völkers offer these properties mainly in the north and southwest of the island. Southeast Mallorca Dreamlike landscapes, fishing ports, good connections to Palma and the airport make up the offer in the southeast of Mallorca. Most buyers use their properties here as holiday getaways. In the southeast, the market for estates and villas is at a high level. Between Cala Llombards and Portocolom, with Santanyí in the centre, average prices continue to stand above 1.6 million euros. Elsewhere on the coast (Sa Rapita, Colonia de Sant Jordi, Ses Salines and Cala Murada), prices fluctuate between 1.4 and 1.6 million euros, and inland they stand at around 1.35 million euros. As for apartments, there is a great demand along the coast, from Cala Murada to Cala Llombards, with an average price of 350.000 euros.

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As far as long-term rental properties are concerned, the prices offered at Engel & Völkers in different regions depend on size, location and facilities. These prices range from 2.000 to 15.000 euros per month for houses, and from 1.200 to 7.000 euros for apartments. The property rental market shows that investors are convinced of the property market’s “magic triangle” in Mallorca, offering all three elements: security, liquidity and profitability.

Menorca

Ibiza

The quiet sustainable tourism of Menorca guarantees its lasting attraction. Improvements include the islandâ&#x20AC;&#x2122;s main road, which is currently being refurbished, and even larger yachts can be moored at the capitalâ&#x20AC;&#x2122;s port, Mahon.

The second largest island in the Balearic archipelago has always been a fascinating place that reinvents itself to be in line with world trends, but not only with regards to gastronomy and entertainment. The experts on the island know the quietest corners, especially in the north. Ibiza also attracts a heterogeneous international clientele in search of property. Modern properties overlooking the sea are in particular demand. Around Ibiza town, like the southwest with its famous sunsets, and the rustic interior with towns like Santa Gertrudis, are highly sought-after fashionable areas. The prices of properties remain high and stable. Villas and country estates in the best locations can be purchased for about 3 million euros. New construction projects in coveted locations have a modern design. Some offer new housing concepts and a wide range of optional facilities. Many road improvements will be completed in 2020, and they will have a sustainable, long-lasting positive effect on the infrastructure.

Since the island has been declared a UNESCO biosphere reserve, no more tourist buildings can be built. Those who want to buy a property can expect to pay between 900.000 and 3 million euros for a villa, while townhouses in Mahon or Ciutadella are available for prices between 300.000 and 1.5 million euros. Menorca is particularly popular with the French.

Real Estate Market Trend Âˇ The Balearic Islands | 121

New Developments

Madrid

The buyer profile of new builds remained unchanged in 2019 with respect to recent years. Since 2018, the young buyer looking to expand his home in areas undergoing growth, has been joined by a customer with high purchasing power, who is looking for homes with all kinds of features in prime areas of the city. This modification boosted prices in Madrid's most premium developments, an upward trend that eased in 2019, in iconic districts such as Salamanca, Centro and Chamartín, but not so much in Chamberí or Retiro, where prices had a slight increase over the last year. At present, six districts in Madrid maintain the average price of new builds above 5.000 euros / sqm, with Chamberí leading the way at almost 8.000 euros / sqm. Behind them you have Salamanca, Retiro, Chamartín, Moncloa and Centro. In addition to the most exclusive projects in these districts, demand is concentrated in small housing developments of 50-80 sqm in areas like Tetuán, and somewhat larger in Latina. Likewise, in the northern area of Madrid, it is possible to get access to large houses exceeding 200 sqm in developments in Pozuelo, Boadilla del Monte, or Las Rozas, at prices around 3.000-3.500 euros / sqm.

122 | Market Report 2019-20 Spain and Andorra

Engel & Völkers’ most significant promotions in Madrid (Data in euros / sqm)

Residential project

District or area

Min.

Max.

Average

General Oraa 9

Salamanca

9.777

13.691

11.612

Fuencarral 142

Chamberi

5.558

11.655

7.961

Bailen 37

Centro

5.094

7.462

6.559

Zorrilla 19

Centro

8.097

12.309

9.857

Dulcinea 45

Tetuan

5.141

6.577

5.773

Cantueso 93

Tetuan

3.169

4.722

3.838

Manuel Marañon 4 Ciudad Lineal

6.611

8.972

7.536

Cuevas Del Valle 26 Aravaca

2.762

2.779

2.768

Calvo Sotelo 44

Pozuelo

3.131

3.364

3.218

Valdemarin 5

Valdemarin

3.494

3.965

3.802

Reyes Catolicos 6

Boadilla del Monte

3.227

3.703

3.403

Barcelona

The average price of new developments in Barcelona reached 5.485 euros / sqm in 2019. The price of new builds increased throughout last year in districts such as Sarrià-Sant Gervasi, Eixample, Sant Martí, Gràcia, Horta-Guinardó and Sants-Montjuïc, while it has decreased in Ciutat Vella and Les Corts.

The rising periphery Development activity Activity on behalf of promoters has shifted to the outskirts. A significant increase in the number of operations is expected in Barcelona’s surrounding, due to its 30% reduction in the number of licence requests. This scenario of political uncertainty has driven the buyer of new builds to finished or rehabilitated products about to be completed. After reaching 3.470 euros / sqm, forecasts indicate that the average price of new build property on the periphery will remain stable but with a slight upward trend in 2020.

The most significant promotions of Engel & Völkers in Barcelona and surrounding areas (Data in euros / sqm)

62% of the buyers are Spanish compared to the 38% who are foreigners, among which French, German and British buyers stand out. Most of the purchases, 69%, are made to acquire a primary residence while 30% go to second homes. There has been a decrease in the number of investor clients, which only accounted for 1% last year. 80% of the sellers are Spanish, whereas Israelis stand out as the majority of the international sellers. Ground floors and penthouses with terraces, between 70 and 90 sqm, with three bedrooms, represent the most requested properties. The highest demand is concentrated in Eixample, Horta-Guinardó, Sants-Montjuïc and Gràcia. One outstanding development consists of the largest building refurbishment where buyers continue to put their stakes in premium areas such as Eixample, although in 2020 the periphery will have more protagonism with regards to the construction of new properties.

Residential project

District or area

Min.

Max.

Average

Jacint Esteve Fontanet Pedralbes

5.340

7.980

6.980

Ausias Marc

Eixample

11.500

13.320

12.570

Girona

Eixample

8.145

14.240

10.155

Gran Via

Eixample

5.165

5.535

5.420

Piquer

Sants - Montjuïc

3.730

5.660

4.800

Valldonzella

Ciutat Vella

5.670

7.933

6.850

Mare de Deu del Coll Gràcia - Vallcarca

4.695

5.790

4.965

Diagonal Mar

Front Marítim

5.320

7.910

5.490

Taulat

Poblenou

6.490

7.030

6.740

Caldes de Montbui

2.640

2.990

2.850

Bonavista Beach

Gavà Mar

5.390

6.585

6.260

Residencial Marianao Park

Sant Boi de Llobregat

2.525

3.605

2.860

Real Estate Market Trend · Obra Nueva | 123

Catalonia

Sitges

Costa Brava Sur

In Sitges, Engel & Völkers is marketing a new building in the centre: Sant Antoni. These are 90 sqm apartments, with an average price of 5.500 euros / sqm. Their strong point lies in their proximity to the town centre and to the sea. Most of the demand for new housing comes from foreigners, as only 20% are Spanish. Purchases are made for both first and second homes.

In the south part of Costa Brava, half of all new purchases go to second homes, mainly in towns such as Lloret de Mar and Platja d'Aro, while 20% to 30% of all purchases are investments. Engel & Völkers offers three new build developments in different locations in southern Costa Brava, with prices reaching a maximum of 7.000 euros / sqm in Lloret de Mar.

Engel & Völkers’ most significant promotion in Sitges (Data in euros / sqm)

Sant Antoni. Centro

Minimum

Maximum

Average

5.000

6.000

5.500

In Lloret de Mar, Infinity is a seafront project consisting of 80 sqm apartments distributed among two to three rooms. Customers are divided equally between Spaniards and foreigners. With a more Spanish buyer profile and an offer of two to three bedrooms 80 sqm apartments, in Marina Port d'Aro in Platja d'Aro, and Metropol in the centre of Sant Feliu de Guixols, 70% of the purchases go to primary residences.

Engel & Völkers’ most significant promotions in Costa Brava Sur (Data in euros / sqm)

124 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Lloret de Mar

2.100

7.000

5.000

Tossa de Mar

2.300

2.700

2.500

Blanes

2.000

4.000

2.500

Platja d'Aro

2.800

3.700

3.300

Sant Feliu de Guixols

2.500

3.000

2.800

Palamós

2.500

3.200

2.800

Cerdanya Last year, Engel & VĂślkers commercialized different promotions of new developments in Cerdanya, at an average price of 3.600 euros / sqm. The three developments promoted by the real estate agency are Mas Barrera, Mas Sallent and Pleta de Ger, which have average prices between 3.000 euros / sqm and 4.400 euros / sqm. Mas Barrera is the first gated village in La Cerdanya. It is a mixed project of both new and rehabilitated properties, with 18 houses located in a private area, which have 90 sqm and two or three bedrooms. It is an area for skiers.

The housing development called Mas Sallent, in Bolvir, maintains the essence of mountain houses defining a new standard of quality and modernity. All the houses are unique structures built with LlĂvia stone. They are fourroom homes with a minimum of 200 sqm. They have common facilities such as a social club, swimming pool and paddle tennis courts. Finally, the new housing project called Pleta de Ger, consists of 50 single-family homes starting at 150 sqm, with four rooms, top quality finishes and Ceretano styled materials. It is necessary to emphasize the technology found in these houses, used to obtain maximum energy efficiency, and to minimize maintenance costs.

Real Estate Market Trend Âˇ Obra Nueva | 125

Costa Blanca

Benidorm

Engel & Völkers’ most significant promotions in Benidorm

Engel & Völkers is marketing five new developments in Benidorm and Finestrat. The most expensive is the exclusive Azure Sky. Located in Rincón de Loix, it is a private community of homes with at least four bedrooms and 437 sqm, where 90% of the buyers are foreign families. Also, in Rincón de Loix there are the Villas de Estocolmo, a community of five-bedroom 400 sqm detached houses with individual swimming pools. In this project, 70% of the applicants are Spanish while 30% of the foreigners are English.

(Data in euros / sqm)

Minimum

Maximum

Average

Rincón de Loix - Villas Estocolmo

2.067

2.222

2.135

Rincón de Loix - Azure Sky

4.411

5.432

4.950

Playa de Poniente - InTempo

2.044

6.371

4.200

Finestrat

1.715

4.195

2.848

Alfaz del Pi The InTempo development is located in Playa de Poniente, a unique building 200 metres high with two to four bedroom apartments between 75 to 300 sqm. The development is equipped with a spa, infinity pool, heated pool, sky lounge and chillout terrace with jacuzzis and Balinese beds. 65% of the buyers are foreigners, 50% of the purchases are investments, and 45% are buying for second homes. Finestrat already has a promotion for both terraced and single-family houses with two to five bedrooms, a swimming pool and a gym. 80% of the buyers are foreigners, with an increase in demand from Russian citizens, and a clear preference for villas. 45% of the buyers purchase the property as a second home, and 30% as an investment.

Engel & Völkers offers five new developments in Alfaz del Pi, in three areas: Playa del Albir, La Nucia and Polop, where the vast majority of new home buyers are foreigners looking for their main residence. The area with the highest demand is Playa del Albir, although it is an enclave with little supply of new properties, for which promotions are low and prices high, causing a shift in purchase applications to the city of Alfaz del Pi and its surroundings. At the moment, supply exceeds demand in La Nucia and Polop, where three-bedroom houses of 100 to 195 sqm are for sale. On the other hand, in Playa del Albir the typology of single-family houses ranges from 236 to 536 sqm and has four rooms.

Engel & Völkers’ most significant promotions in Alfaz del Pi (Data in euros / sqm)

126 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Playa del Albir

2.500

3.200

2.850

La Nucia

1.980

2.400

2.190

Polop

1.800

2.400

2.100

Moraira

Jávea

The developments marketed by Engel & Völkers in Moraira involve four-room homes with 238 to 280 sqm, equipped with a private pool. The possibility of walking to Moraira and the sea views constitute the main attractions. The buyer profile is composed of foreign families looking for a second home.

New builds in Jávea reach prices of up to 6.000 euros / sqm in the most popular areas. Large villas, between 400 and 500 sqm, are the most sought-after by families and non-resident investors in developments such as Balcón al mar, Costa Nova, La Corona or Jávea Golf, among others. Residents, for their part, prefer Tosalet with traditional Mediterranean villas, as well as Cap Martí or Adsubia, where prices do not exceed 4.000 euros / sqm.

Engel & Völkers’ most significant promotions in Moraira (Data in euros / sqm)

Engel & Völkers’ most significant Moraira

Minimum

Maximum

Average

promotions in Jávea

2.606

2.615

2.610

(Data in euros / sqm)

Denia The new developments in Denia are concentrated in three areas: Las Marinas, Las Rotas and El Montgó, with the later two also offering a wide range of newly built individual housing projects in high demand.

Minimum

Maximum

Average

Balcón al Mar /Costa Nova/Portixol

4.000

6.000

5.000

Jávea Golf

3.900

4.550

4.225

La Corona/Puchol/ San Antonio

5.500

6.000

5.750

Tosalet /Cap Martí / Adsubia

3.800

3.960

3.880

In both Las Rotas and El Montgó buyers are looking for nearby villas with views of the sea, and surface areas between 250-300 sqm. The greatest demand in Las Marinas is for apartments of around 100 sqm, located on the seafront. The buyer profile in Las Rotas is familial, with Spanish citizens accounting for 80% of acquisitions, while in the two remaining areas this percentage drops to 60%.

Engel & Völkers’ most significant promotions in Denia (Data in euros / sqm)

Minimum

Maximum

Average

Las Marinas

1.800

2.000

1.900

Las Rotas

2.800

3.000

2.900

El Montgó

2.200

2.500

2.350

Real Estate Market Trend · Obra Nueva | 127

Galicia

La Coruña

Vigo

For the present year, a great increase of new single-family properties is expected in the residential areas of Oleiros, and a slight decrease of development in the city. In fact, Engel & Völkers is marketing five new developments in La Coruña, three of which are located in Oleiros: Jardines de Santa Cruz, Oleiros Village and Urbanización Club de Tenis, all of them high standing developments.

Engel & Völkers is marketing four new builds in Vigo. Alameda 1, located in Plaza de Compostela, a few metres away from the marina, yacht club and the A Laxe shopping centre, offers flats and apartments measuring 45 square metres and with one to two bedrooms. Half of the buyers of these properties are making an investment while the other half is purchasing their primary residence.

Jardines de Santa Cruz is only 50 metres from the promenade and the beach. The houses have one to four bedrooms. 70% of the buyers are families, most of which seek their primary residence, while 20% are looking to invest. The Oleiros Village and Tennis Club developments are made up of single-family homes with three to five bedrooms.

Ecuador, 73 and the Balandrón building are located in the city centre. The first project consists of two to three bedroom flats while at Balandrón the homes have three bedrooms. The buyers are entirely Spanish clients mostly looking for their main residence. On the other hand, the Luis Taboada 6 development is made up of 12 one to four bedroom homes, in a privileged location of the city, where the Luis Taboada and Castelar streets intersect.

In La Coruña, Engel & Völkers is offering Residencial Naútica, located in the main urban area of the new build, Riazor. The sought-after properties are one to four bedroom apartments, with 30% of the buyers making their purchase as an investment. In the capital’s premium area, in the Ensanche, you can find the Artium building, which has one to three bedroom apartments. Here 25% of the purchases are made by investors.

Engel & Völkers’ most significant promotions in La Coruña (Data in euros / sqm)

Minimum

Maximum

Average

Jardines de Santa Cruz

3.712

3.952

3.832

Edificio Artium

2.769

3.673

3.221

Residencial Náutica

4.112

7.500

5.806

Oleiros Village

2.206

2.377

2.291

2.179

Urbanización Club de Tenis

128 | Market Report 2019-20 Spain and Andorra

Engel & Völkers’ most significant promotions in Vigo (Data in euros / sqm)

Minimum

Maximum

Average

Centro - Luis Taboada

3.200

5.000

3.500

Centro - Alameda 1

1.700

2.100

2.000

Casablanca - Corte Inglés, Ecuador 73

1.800

2.300

2.000

Centro - Edificio Baladrón

2.300

2.800

2.500

Asturias

Pontevedra The Casas da Nova Pedra development is located in Pontevedra’s city centre. It consists of two to three bedroom flats between 100 and 130 sqm. They offer a parking space, a storage facility, social lounge, game room, and a garden area. The demand is made up of Spanish couples and singles acquiring their primary residence.

The market for new developments in Asturias experienced a year with two clearly different trends: an active first semester, in particular during the first quarter, and a second part where a general slowdown was detected. Among the new builds marketed by Engel & Völkers in Luanco, the one that stands out is La Quinta de Luanco. Commercialized exclusively by the agency, the development consists of 18 houses designed by the architect Joaquín Torres, with views of the Cantabrian Sea, and an individual swimming pool. In the centre of Gijón, the project located in Emilio Tuya 40 is made up of 12 homes with an average price of around 2.584 euros / sqm. A step away from San Lorenzo beach, the flats have two to three bedrooms, a storage room and garage space.

Engel & Völkers’ most significant promotion in Pontevedra (Data in euros / sqm)

Casas da Nova Pedra

Minimum

Maximum

Average

1.414

2.100

1.873

Surrounded by nature and in Gijón’s surroundings, you find the Parque de Viesques residential complex, which has one to three bedroom apartments of up to 127 sqm, equipped with parking and storage facilities. The development also offers a swimming pool and a garden. Finally, the Playa de la Espasa development, located between the towns Ribadesella and Colunga, consists of homes with direct views of the sea. They are 174 sqm houses with three rooms, a porch and balcony.

Engel & Völkers’ most significant promotions in Asturias (Data in euros / sqm)

Minimum

Maximum

Average

Centro

2.424

3.125

2.584

Viesques

1.206

2.486

1.945

Quinta de Luanco

2.271

3.395

3.347

Playa de La Espasa - Colunga

2.031

2.363

2.139

Real Estate Market Trend · Obra Nueva | 129

Castilla and León

Andalusia

Valladolid

Mijas

Engel & Völkers is offering four new developments in Valladolid. As with second-hand housing, the boom in the Villa del Prado neighborhood stands out. In this district, the new Monasterio housing development located in Santo Domingo de Silos street, has 96 homes with an average of 112 sqm, two to four bedrooms, a garage and storage room, in an exclusive development with gardens, a children's play area, swimming pool and paddle tennis court.

El Chaparral and Cala de Mijas offer new build developments with prices ranging between 2.000 and 6.000 euros / sqm. The most requested typologies are apartments and penthouses of more than 100 sqm, with two or three bedrooms. Also in high demand are semi-detached or terraced houses, with four bedrooms, 150 square metres, gardens and a swimming pool. For new builds, the percentage of foreign buyers rises to 70% compared to the 30% of Spanish buyers.

You can also find the Las Eras residential complex in Villa del Prado. It offers single-family homes with four bedrooms and a surface area of 250 sqm. Both developments benefit from the fact that the demand for four-bedroom homes over 100 sqm, is above the supply. The Colmenares new development is located in the centre of Valladolid, and consists of 14 homes. It is a unique new housing project that maintains the building’s facade from the beginning of the 20th century. It has attractive amenities such as a gym, Finnish sauna and bithermal shower, a parking and storage room. The homes have an average of 105 sqm distributed among two to four bedrooms. For its part, the new development called Bajada de la Libertad, is located in the heart of the historic quarter. The building was refurbished to create 100 sqm homes with three bedrooms. In the Centro district, an increase of investors making purchases can be seen. They now constitute about 30% of the buyers. The reason for this has less to do with the net profitability than with the revaluation of the property.

Engel & Völkers’ clients who buy a new build property in these locations mainly use it as a second home (65%), although 30% of them are making an investment, and only 5% seek a main residence. Engel & Völkers’ most significant promotions in Mijas (Data in euros / sqm)

Engel & Völkers’ most significant promotions in Valladolid (Data in euros / sqm) Residential project

Residential project

Area

Minimum

Maximum Average

Eden by Kronos

El Chaparral

2.479

5.148

4.180

Aria by the Beach

El Chaparral

3.215

5.123

4.522

Minimum

Maximum

Average

Villa del Prado - El Monasterio

2.209

3.488

2.662

Residencial Mediterraneo

El Chaparral

2.394

6.038

2.750

Villa del Prado - Las Eras

1.928

2.050

1.980

One Residences

Cala de Mijas

2.174

3.212

2.736

Centro - Colmenares

3.180

5.415

3.705

Centro - Bajada de la Libertad

3.360

4.605

3.593

130 | Market Report 2019-20 Spain and Andorra

Marbella

Estepona

The new developments in Marbella have been very well-received by foreigners, who account for 70% of all purchases as opposed to the 30% of Spaniards.

Engel & Völkers is offering new build homes in more than fifty developments throughout the area. They are highly demanded by families that are 70% foreign compared to 30% Spanish. The requests are split among the clients purchasing a second resident, which constitutes 48% of the transactions, those looking for a primary residence (40%), and the 12% making an investment.

Engel & Völkers Marbella offers about 45 new developments from which it has carefully selected the six best to market exclusively. Due to the limited space available and the little guarantee of new licenses, soon after the beginning of the construction, there were price increases of 10%, and later 20% increases from the resales. Until now, in order to acquire a new villa in a private complex, one had to look in Sierra Blanca or Nueva Andalucía. That is why the new housing project called La Fuente has been so long-awaited. La Fuente is a complex of eco villas featuring the latest green technologies, within a private community of a privileged enclave, just a few metres walk away to the old town, the beach or Puente Romano.

We can highlight four of the developments marketed: The Edge, The View, Terrazas de Cortesín and Darya Estepona. The most sought-after typology in The View, a development located in the Selwo area, is a four-bedroom home. Then you have The Edge, which is near Kronos in Costa Natura, and Las Terrazas de Cortesin, which is located in Casares. In both cases preference is given to three-bedroom apartments. In Darya Estepona, a building located on the main avenue in front of the beach, the two and three bedroom apartments claim the highest demand.

Engel & Völkers’ most significant

promotions in Marbella

promotions in Estepona

(Data in euros / sqm)

Residential project

Area

Minimum

Maximum Average

Residential project

Area

Minimum

Maximum Average

The Collection

Milla de Oro

3.144

4.854

3.548

The Edge by Kronos

Costa Natura

5.937

9.452

7.260

Las Terrazas de Cortesin

Casares

3.245

4.215

3.760

The View

Selwo

3.237

3.448

3.356

Darya Estepona

Centro

3.285

8.250

5.767

Benalus

Milla de Oro

3.626

5.235

4.430

Grand View

Nueva Andalucía

4.466

5.882

5.174

La Fuente

Milla de Oro

2.850

3.352

3.286

Real Estate Market Trend · Obra Nueva | 131

Andorra

EspaĂąa

Andorra

132 | Market Report 2019-20 Spain and Andorra

Andorra

The Country’s Economic Outlook

76.177

35.996 €

26.291 €

3.989 €/m²

+4 %

Population or Number of Inhabitants

Average Gross Income

Disposable Income

Average Price 2019

Interannual Variation

Located in the heart of the Pyrenees, the Principality of Andorra is characterized by its great institutional and political stability, its high levels of public safety and moderate taxation. To all this we can add its high quality of life and great social cohesion. Therefore, in the seven parishes that divide the territory, people of more than 100 different nationalities live together, and there are no pockets of exclusion or problems of coexistence.

The Andorran economy has been experiencing a sustained rate of recovery since 2012, accompanied by positive growth rates since the fourth quarter of 2014. The forecasts of the Department of Statistics of the Government of the Principality point to a slowdown in the country’s economic growth this year. The Gross Domestic Product (GDP) will reach an increase of 2.4% in 2019, a figure that will gradually decrease to 1.9% in 2022.

The service sector, with trade and tourism at the forefront, is the basis of the Andorran economy. The Principality is an important tourist centre receiving more than eight million visitors a year. Specializing in winter sports, the government and business people have undertaken a series of measures aimed at strengthening the natural area and making the country a benchmark for activities such as trekking, extreme sport, adventure tourism, gastronomy and culture. The country has 65 peaks over 2.500 sqm, some 60 lakes and 36% of its surface area is considered a protected natural park.

Andorra's nominal GDP 2500

2,3% 1,9%

2000 1.843

1.901

1.885

1.937

1,7% 1.970

1,6% 2.002

0,8% 0,4% 1500

2013

Data in millions of euros.

2014

2015

2016

2017

2018

Source: Department of Statistics Government of Andorra

Real Estate Market Trend · Andorra | 133

Real Estate Market and Trends

Main figures of Andorra’s economy 2014

2015

2016

2017

2018

Nominal GDP per capita (euros)

35.786

35.342

35.580

35.753

35.996

IPC

-0,1%

-0,9%

0,4%

2,6%

0,7%

Public Debt (% GDP)

41%

40,6%

40%

37,6%

36,1%

Business

7.557

7.929

8.347

8.837

9.170

Source: Department of Statistics Government of Andorra

The economic crisis and recovery changed the pillars of the Andorran economy. In a decade, the Principality went from being an economy without indirect taxes and practically closed to foreign investment, to deploying a new tax model in which foreign investment already accounts for nearly 6% of the GDP. This shift will be sealed with the signing of a cooperation agreement with the European Union, allowing the Principality to be a part of the internal market without the need to be a member of the Union, while preserving some of its own characteristics as a small country.

Residential The slowdown in the growth of the real estate market will be felt throughout the year. Engel & Völkers Andorra expects an increase in the number of properties sold this year, of just over 5% compared to 10% in 2019. On the other hand, 45% of Engel & Völkers Andorra’s clients obtained the passive residency permit in 2019 through the purchase of a property, five points less than the previous year. In the third quarter of last year, the amount of property transferred in the Principality—flats, single-family units, parking spaces, commercial premises, warehouses, and more—reached 402 units, a decrease by 9.9% compared to the same period of the previous year. Its cumulative figure was 6.9%, according to data from the Department of Statistics of the Government of Andorra. Despite this decline, it is the best figure recorded in the last seven years, surpassed only by the one reached in 2018.

Canillo Ordino

La Massana Encamp Escaldes-Engordany Andorra la Vella Sant Julià de Lòria

Height

Metres

Canillo

1.526

Encamp

1.238

Ordino

1.298

La Massana

1.230

Andorra la Vella

1.013

Sant Julià de Lòria

908

Escaldes-Engordany

1.050

Source: Andorra Atlas (1989).

134 | Market Report 2019-20 Spain and Andorra

The Principality of Andorra is one of the smallest countries in the world, with less than 500 km2 of rugged mountainous terrain. However, its population is almost double that of other small European states such as Monaco, Liechtenstein or San Marino. Its territory is structured into seven parishes: Canillo, Encamp, Ordino, La Massana, Andorra la Vella, Sant Julià de Lòria and Escaldes-Engordany.

Andorra la Vella and Escaldes-Engordany They are the two least extensive districts of the Principality but also the most populated. Andorra la Vella stands out as the country’s capital, as well as its financial and commercial centre. Escaldes-Engordany on the other hand, located in the centre of the country, is recognized for its thermal waters. In fact, it has the most important spas in the country, Caldea. In both parishes, the most demanded property is a house for someone’s primary residence, with more than 100 sqm, three rooms and parking. The profile of the buyer is mainly Andorran, while only 20% are foreigners.

Encamp It is known for being a residential area with slightly lower prices than other areas (3.020 euros / sqm is the average price). The most demanded housing typology in Encamp ranges from 70 to 100 sqm, with two or three rooms. Most purchases are for a primary residence, and 80% of the buyers are Andorran nationals. The seller, for his part, is also almost entirely local.

Sant Julià de Lòria The parish with the lowest altitude of the Principality stands out for being a quiet residential area with many services for local families. It is an interesting environment for foreign investors due to its proximity to the Spanish border. The buyer profile in this area is an Andorran wanting to acquire his or her primary residence, the typology of which includes apartments and houses starting at 100 sqm, with two or three bedrooms.

Ordino Ordino is considered the Andorran cultural centre. It is a typical Pyrenean enclave standing out for its snow sports. The most requested area is Ordino town due to its proximity to the country’s capital, an area in high demand from families. The most sought-after houses are for primary residences between 100 and 120 sqm and with three bedrooms. The buyer profile is an upper-middle class resident, 65% of whom are Andorrans with a strong preference for an apartment, house or villa.

Canillo

La Massana offers some of the best hotels and restaurants in the country. A large part of its activity is centred on the Vallnord ski resort. The most popular areas are La

It is the largest parish in the Principality, considered the summit in Andorra. Its most successful district is the village Tarter next to the largest ski area in the Pyrenees, Grandvalira. The most sought-after property is a second residence at the foot of the slopes, with some 80 sqm and two bedrooms. Foreign investors represent the majo-

Massana, Aldosa, Anyós and Escàs, while the most sought-after types of housing are varied: apartments between 80 and 120 sqm to houses from 250 to 500 sqm, with two to five bedrooms for both primary and secondary homes. The profile of the buyer and seller is divided equally among foreigners and citizens.

rity in this area, comprising 70% of the buyers. The seller is also mostly foreign, only 30% are citizens. The latter is looking for a larger property while the former wants to sell in order to return to their country. In the last months of 2019, a strong increase of Argentine sellers was noticed.

La Massana

Real Estate Market Trend · Andorra | 135

Prices

Rentals

Properties reach their highest value in Escaldes-Engordany and in Andorra la Vella. The price in Escaldes-Engordany is a maximum of 9.400 euros / sqm, although the average is 4.900 euros / sqm. On the other hand, the houses in the country’s capital reach an average cost of 4.700 euros / sqm.

The cost of renting remained practically unchanged last year in Andorra, with slight increases in Encamp, Ordino and La Massana. 90% of those looking for a property to rent in the principality do so to make it their primary residence, while only 10% want a second home.

Encamp, Canillo and Sant Julià de Lòria are the cheapest areas to buy a house in Andorra, with average prices of 2.700 and 3.000 euros / sqm, respectively. The minimum cost for the entire Principality, 1.500 euros / sqm, is in Encamp.

Property Prices in Andorra (Data in euros / sqm)

Parishes

Minimum

Maximum

Average

Canillo

1.850

5.000

3.000

Encamp

1.500

4.400

2.700

Ordino

2.500

5.555

3.850

La Massana

2.100

5.600

3.700

Andorra la Vella

2.300

8.900

4.700

Sant Julià de Lòria

1.600

4.200

3.000

Escaldes-Engordany

2.300

9.400

4.900

The characteristics of the most demanded properties to rent vary according to the area, although they are focused on two typologies, apartments and villas, the former being the most sought-after in Canillo, Encamp, Andorra la Vella, Escaldes-Engordany and Sant Julià de Lòria. Regarding Ordino and La Massana, although there is also a demand for apartments, the properties most commonly sought are 200 sqm villas with three to five rooms.

Price of rent in Andorra (Data in euros / sqm)

136 | Market Report 2019-20 Spain and Andorra

Minimum

Maximum

Average

Canillo

Encamp

8,5

Ordino

La Massana

Andorra la Vella

Sant Julià de Lòria

Escaldes-Engordany

14,5

New Developments

Engel & Völkers Andorra is currently marketing six new development projects. The Isard Homes development is located at the foot of the exclusive Grandvalira ski resort’s slopes, in the village of El Tarter. These properties have already begun to be marketed and are expected to be sold by the end of 2021. With an average price of 5.000 euros / sqm, this development offers two-to-four bedroom homes, with 80 to 180 sqm and the following features: entrance lobby with open spaces; a spa area with direct views of the ski resort; ski room and a garage for one or two cars per home. 90% of the buyers make their purchases for a second residence, and 50% of them are also making an investment. The Lloser development in parish Ordino consists of two to three bedroom homes ranging from 165 to 235 sqm. The buyer is, in equal parts, both domestic and foreign. Similarly, 50% purchase the home as a permanent residence and 50% as a second home. The White Angel is located in the country's capital, and it offers 160 homes with two to five-bedroom ranging from 80 to 220 sqm. It is a private development with garden areas, underground parking, concierge & lifestyle services, spa and gym. 80% of the buyers make their purchases here for a primary residence. Located in the parish Escaldes-Engordany, the A-Tower development has the highest average price, 6.000 euros / sqm. It consists of homes from 165 to 235 sqm with three or four bedrooms. The buyer profile is equally divided between locals and foreigners.

In the same district you can find luxury residences Terrasses d'Emprivat and Escala. Located on the most important commercial avenue in Andorra, Terrasses d'Emprivat is a 20-storey tower made up of 70 to 140 sqm two to four bedroom homes. Escala is also a unique project that will have homes ranging from 237 to 603 sqm, with two to six bedrooms. Here the properties come equipped with a wellness area and a gym. 80% of the buyers will purchase this home as their first residence and 20% as their second. In one of the most exclusive and coveted residential areas of La Massana, you can find Luxe Residencial Escàs, a new development of terraced houses and villas. The 8 terraced houses plus 3 villas bring together the luxury of quality materials, an unbeatable location with spectacular views, and absolute tranquillity. The houses offer wide functional spaces and up to 4 rooms, or 5 in the villas. Most buyers will choose this option for their main residence. The profile of the clientele is equal parts local and foreign.

The most significant properties offered by Engel & Völkers in Andorra (Data in euros / sqm)

Project

Area

Min.

Max.

Average

Isard Homes

El Tarter/Canillo

3.800

5.500

4.300

The White Angel Andorra la Vella

4.700

6.800

5.500

Lloser d'Ordino Ordino

3.800

4.400

4.200

A-Tower

Escaldes-Engordany

5.500

8.800

6.000

Terrasses d'Emprivat

Escaldes-Engordany

4.000

5.500

5.000

Luxe Residencial Escàs La Massana

3.000

3.250

3.500

Escala

4.650

5.500

5.000

Escaldes-Engordany

Real Estate Market Trend · Andorra | 137

Credits Editor Engel & Völkers Spain S.L. Avenida Diagonal, 640 6ª planta E-08017 Barcelona Spain Drafting Stakeholders PR Layout Vänster and Lei Coordination Déborah Newton Sources For the preparation of this report, all the data and statistics have been collected from the following entities and agencies: Tax Agency (AET), European Central Bank (ECB), Bank of Spain, Bloomberg, Association of Property Registrars, International Monetary Fund (IMF), Inverco, Idealista, National Statistics Institute (INE), Ministry of Development, Housing and Land Observatory, Organisation for Economic Co-operation and Development (OECD) and Tinsa. This report was completed before the state of alarm was declared in Spain, so the forecasts that appear in some of its sections referring to 2020 may suffer significant variations in both price and transaction forecasts. All the information has been thoroughly researched. No responsibility can be taken for the accuracy of the information. The reproduction of content protected by copyright is only allowed with the consent of Engel & Völkers Spain S.L. provided that an appropriate reference to the source is made.