Mathew Wood, our resident expert from Hola Properties – headquartered in Lanjarón – gives his monthly roundup of the local property market covering Lecrin, Lanjarón, Órgiva, and Costa Tropical.
The month of June 2024 saw some interesting shifts in the property market across various areas.
Lecrin Valley
This month, Lecrin Valley saw a total of 186 properties available for sale, marking a 30% reduction year on year. The average asking price remains relatively stable at €138,000, with the price per square metre at €931, reflecting minor fluctuations from last year.
Lanjarón
Lanjarón had 84 properties for sale, showing a 10% decrease in stock from the previous year. The average price per property was just over €100,000, or €832 per square metre. However, this area experienced a significant 39% drop in average prices, highlighting some irregularities in market trends.
Órgiva
Órgiva’s market remains robust with 81 properties available for sale, a slight increase from last year. The average asking price is €240,000 – a 5% rise – with the price per square meter at €1,283, staying fairly consistent.
Velez de Benaudalla
In Velez de Benaudalla, there were 69 properties on the market, with an average asking price of €175,000 or €1,219 per square metre. showing stability in both pricing and stock levels compared to last year.
Key markt issues
One of the main issues at present is “stale stock”. Properties that linger on the market can deter potential buyers, who may assume there are issues with the property. This highlights the importance of obtaining a professional valuation rather than relying on average prices, especially when considering square metre prices, which can be highly inaccurate.
The term “slow mover” is used in many mature markets to describe properties that have been for sale for an extended period. In Northern European markets, a property can earn this label in as little as 12 weeks. This can negatively impact its attractiveness to buyers, particularly those looking to relocate from abroad. It’s essential to incorporate this consideration into your overall marketing plan, especially if your property is appealing to foreign buyers.
Summer viewing trends
As summer vacations kick in, viewing tours are booked weeks in advance, providing ample opportunity for potential buyers to explore properties. However, it’s crucial to be wary of tourist viewers – those who schedule viewings on short notice without serious buying intentions. Frequently. they haven’t obtained their NIE numbers and are just using a spare day of their holiday to view properties out of curiosity.
A telltale sign of a tourist viewer is a lack of feedback from your agent post-viewing. If your agent isn’t providing any feedback, positive or negative, the viewers possibly weren’t genuinely interested in buying. To save time and effort, ensure your agent vets the viewers properly.
Holiday rentals
The holiday rental market has been rocked by significant changes. Malaga, Seville, and now Granada have ceased issuing new holiday rental licenses. Barcelona has announced a ban on all holiday rentals starting in 2028. This trend could spread to other municipalities, causing uncertainty for those in the holiday rental market. Buyers who want to rent out their properties are now hesitant to purchase real estate without holiday licenses, impacting the market dynamics significantly.
Ilegal rentals
There’s a crackdown on illegal rentals, with fines up to €100,000. Authorities are actively searching for and penalising illegal listings. If you’re renting a property without a tourist licence, be prepared for inspections and potential fines. This crackdown is part of a broader effort to regulate the rental market and ensure compliance with local laws.
Golden Visas
The Golden Visa programme, which offers residency for investing €500,000 in Spanish property, is under threat of abolition. Despite this, there’s still a strong demand for high-end properties. Properties owned for up to 10 years can still be included in Golden Visa applications. This presents an opportunity for those who already own property in Spain and are considering applying for the visa.
Mortgage mis-selling
The mis-selling scandal surrounding mortgages by Spanish banks continues. Homeowners affected by hidden clauses that led to higher charges are receiving compensation, sometimes up to €50,000. These cases involve clauses that set a floor on interest rates, causing homeowners to pay more than they should have. Legal advice is recommended if you believe you may have been affected, as compensation could be substantial.
The main advice when buying or selling a property is to solicit the advice of seasoned market professionals.
