Interest in buying property in Spain and the Canary Isles is increasing with more people searching for Spanish real estate in May, according to the latest index from Rightmove. Overall 58% of locations saw an increase in property searches, 42% saw a decrease and 0.2% experienced no change.
Half of the top time climbers in May were in Spain and its Islands There was also interest in South Africa but this is put down to curiosity generated by the World Cup football tournament rather than an increase in serious buyers. June is expected to see even more interest as football fever continues.
Interest in property in Tenerife and Spain increasing once more
‘May was a great result for Spain, fed by returning confidence among buyers as the bad memories and headlines of last year fade. It’s always hard to let go of what your property was worth at the peak of the market and accept times have changed, but vendors also seem more open and have much improved realism about prices necessary to make transactions happen,’ said Robin Wilson, Head of Overseas at Rightmove.
‘The improving Euro exchange rate is definitely playing a part, up 10% on January this year and 20% on January last year, meaning buyer’s budgets can go further,’ he added.
Moneycorp, one of the UK’s leading foreign exchange specialists, has also seen a rise in enquiries for Spanish properties, which amounted to an increase of 11.8% between March and May.
‘Throughout May, sterling gained good ground against a weak Euro. Having started the month at €1.14, the rate eventually reached €1.18 towards the end of the month. The pound has benefitted from economic data which continues to support the view that the UK recovery is gaining traction,’ said David Kerns, Head of Private Clients at Moneycorp.
‘In contrast, the Euro has continued to weaken, following news that Spain’s AAA credit rating had been downgraded. It was sent even lower when the European Central Bank warned that Euro zone banks faced writing off another €195 billion of bad loans. The increase in the Sterling/Euro exchange rate would have made properties within the Euro zone an increasingly more attractive prospect for Euro buyers, and explains the surge in interest.
