MARKET REPORTS Q1 & Q2 2016

M A R K E TR E P O R T S

Q 1 & Q 2 2 0 1 6

BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN

http://www.lucasfox.com

B A R C E LO N A 12S PA I N 4

S I TG E S 26 VA L E N C I A 37M A D R I D 31

CO STA B R AVA 44 I B I Z A 56

M A R E S M E 22

M A R B E L L A-CO STA D E L S O L

50

BARCELONA • COSTA BRAVA • GIRONA

IBIZA • MADRID • MALLORCA

MARBELLA-COSTA DEL SOL • MARESME COAST

SEVILLE • SITGES • VALENCIA

ANDORRA • PORTUGAL

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M A R K E TR E P O R T S

Q 1 & Q 2 2 0 1 6



• The first half of 2016 has seen Lucas Fox’s business continue to grow and expand, with both the number and value of transactions up across all its regions compared to the same period during 2015.

• Overall the Spanish property market continues to show steady signs of recovery with almost 37,000 residential properties exchanging hands in June 2016, a three-year high.

• The prime residential market continues to be driven by foreign investment. National buyers are returning to the market, however, and they represented 30% of all of Lucas Fox sales in the first half of 2016, compared to 17% for the same period in 2015.

• There is a high level of interest in New Development properties. Lucas Fox sales of new homes increased by 55% in Barcelona in the first six months of 2016.

E X E C U T I V ES U M M A RY

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VA L E N C I A

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OV E RV I E WS PA I N

LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / SPAIN: ECONOMIC AND PROPERTY INDICATORS5

W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN

THE SPANISH PROPERTY MARKET

The first half of 2016 has been another very positive period for the Spanish property market. Lucas Fox’s biannual market reports show an increase in both the number and value of transactions during the first half of 2016. External studies also suggest that it continues to be an opportunistic time to invest in Spanish property, with prices still 30-35% below the peak of 2007, the economy continuing to grow and mortgages increasingly competitive.

The Lucas Fox reports indicate that foreign investors continue to be key drivers of the prime property residential market but national buyers are also sustaining the turnaround. Spanish buyers accounted for almost 30% of all Lucas Fox sales in the first six months of 2016, compared to 17% in the same period last year. UK buyers represented just under 10% of buyers in the first half of 2016 with the rest of Europe accounting for almost 30%. The number of buyers from the Middle East has also increased, representing 8% of all Lucas Fox sales, double the proportion for the same period last year.

With regards to motivation for buying, 28% of buyers bought homes as a primary residence and 36% as a secondary residence. There has been a significant rise in those buying for investment reasons. 28% bought as an investment in the first six months of 2016, compared to 17% in the same period in 2015. 6% of buyers purchased property to obtain the Golden Visa, up from 3% in the same period in 2015.

A report by the Consejo General del Notariado shows that the sale of homes increased by more than 18% since March 2016, with Catalunya standing out with an impressive 24% increase. The price per square metre of properties has also increased, with an average rise of 4% being seen across Spain – this figure being based on actual sales prices rather than asking prices.

According to leading property portal Idealista property prices per square metre have also increased, with an average rise of 4% seen across Spain.

Foreign investment has fueled residential construction especially in Spain’s key cities. According to the Ministry of Economy, real estate accounted for more than a third of the nearly €22 billion ($24 billion) of foreign investment in Spain in 2015. This was helped in part by private equity funds, looking to make profit on residential building given Spain’s fourth year of economic recovery and a lack of suitable property in prime areas.

Between January and May of this year, a total of 10,676 licences were authorised for the restoration of Spanish homes, representing an increase of 2% over the same period of the previous year and a sign of more growth to come. This is a successful outcome of one of the initiatives of the Spanish government, aimed at encouraging home refurbishment.

PROPERTY BUYERS IN SPAIN:MOTIVATION FOR PURCHASE, Q1 & Q2 2016Source: Lucas Fox sales data

28%

36%

6%

28%

2%Primary Residence

Secondary Residence

Golden Visa

Investment

Other

Primary ResidenceSecondary ResidenceGolden VisaInvestmentOther

28%

36%

6%

28%

2%Primary Residence

Secondary Residence

Golden Visa

Investment

Other

PROPERTY BUYERS IN SPAIN:COUNTRY OF ORIGIN, Q1 & Q2 2016Source: Lucas Fox sales data

SpainUK / IrelandFranceCanada / USAAsiaMiddle EastScandinaviaSouth AmericaOther EuropeOther

29%

10%

8%6%8%

8%

7%

3%

15%

6%

Spain

UK / Ireland

France

Canada / USA

Asia (China, India, Indonesia, Phillipines, Singapore, Turkey)

Middle East (Egypt, Israel, Kuwait, Lebanon, Saudi Arabia)

Scandinavia (Finland, Norway, Sweden)

South America (Argentina, Venezuela)

Other Europe (Belgium, Germany, Italy, Netherlands, Poland, Switzerland)

Other (Australia, Kazakhstan, Russia)

29%

10%

8%6%8%

8%

7%

3%

15%

6%

Spain

UK / Ireland

France

Canada / USA

Asia (China, India, Indonesia, Phillipines, Singapore, Turkey)

Middle East (Egypt, Israel, Kuwait, Lebanon, Saudi Arabia)

Scandinavia (Finland, Norway, Sweden)

South America (Argentina, Venezuela)

Other Europe (Belgium, Germany, Italy, Netherlands, Poland, Switzerland)

Other (Australia, Kazakhstan, Russia)

http://www.lucasfox.com/



THE ECONOMY AND EMPLOYMENT

Two inconclusive general elections in seven months seems to have had little impact on the Spanish economy so far in 2016. In 2015 the economy grew by 3.2% and is predicted to grow by 2.6% in 2016, compared to 1.6% across the Eurozone.

In June 2016 unemployment in Spain went down by 124,349, the second biggest monthly decline on record. Economists predict unemployment to fall further by the close of 2016 and to 18.3% by the end of 2017.

Spain also seems to be reaping the benefits of the government’s overhaul and recapitalisation of the banking system in 2012. Structural reforms addressing the labour and financial markets, the fragmentation in service markets and the simplifying of business creation also look to be having a positive impact on the economy.

CURRENT GDP GROWTH AND FORECASTS FOR SPAIN

2012 - 2017

Source: ec.europa.eu

ECONOMIC PREDICTIONS

Source: IMF

ECONOMIC GROWTH FORECASTS FOR SPAIN

COMPARED WITH GERMANY, FRANCE AND ITALY

2015 - 2017

Source: IMF

Valu

e in

‘000

€

2015 2016 2017

0

0,5

1

1,5

2

2,5

3

3,5

Spain Germany France Italy

Valu

e in

'000

€

2015 2016 2017

-3

-2

-1

0

1

2

3

4

2012 2013 2014 2015 2016 2017Valu

e in

'000

€

GDP growth: Spain

GDP growth: Spain

World Output

United States

Eurozone

Germany

United Kingdom

Spain

3.4

2.4

0.9

1.6

3.1

1.4

3.1

2.4

1.7

1.5

2.2

3.2

3.1

2.2

1.6

1.6

1.7

2.6

3.4

2.5

1.4

1.2

1.3

2.1

2014 2015 2016 2017

Actual Projections

GDP growdth: Spain




EURIBOR

The Euribor is a European-wide economic metric that calculates the average interest rate that banks in the Eurozone offer to lend unsecured funds to other banks in Europe. The European Central Bank left its refinancing rate at 0% for the fifth straight month in August 2016. Since June 2014 banks have lowered their interest rates, indicating they have much greater trust in their customers to repay loans. This has affected interest rates charged on mortgages and has led to a greater rate of property lending and therefore trading. Most policymakers believe that European markets have showed resiliance following the UK’s decision to leave the EU as a result of the referendum held on 23 June 2016.

EXCHANGE RATES

Exchange rates, particularly between the Euro and the British Pound and the US Dollar, also impact on the Spanish property market. The uncertainty of the outcome of the UK referendum ahead of 23 June 2016 and the subsequent decision to opt out has seen the British Pound take a significant tumble against the Euro. This has affected the lower end property markets in resort areas such as the Costa Blanca and Costa del Sol. Lucas Fox has so far not seen a significant impact across its regions although it has been felt to some extent in the resort locations where Lucas Fox is active. Economists predict that the Euro Dollar exchange rate is forecast to see little movement from summer 2016 levels (at around 1.11) through to the end of 2016.

TOURISM

Tourism across Spain is a useful indicator of level of interest in the country as a lifestyle opportunity, as well as an indicator of the potential for property investment. Spanish tourism is set for another bumper year in 2016 and is expected to profit from security concerns in previously popular holiday destinations such as Turkey, Egypt, Tunisia and even France. By June 2016 the number of foreign visitors to Spain increased by 11.7% (compared to the same period in 2015) to almost 32.8 million. The majority of visitors came from the United Kingdom, with just under 8 million visitors, up by more than 15% on 2015 figures. During the same period just under 5 million Germans came to Spain, 4.6 million French and 2.4 million Scandinavians.

US DOLLAR CURRENCY RATES AGAINST THE EURO, 2016

Source: X-rates.com

TOURIST ARRIVALS IN SPAIN, 1997 - Q2 2016

Source: Thomson Reuters Datastream

Euro

Tour

ists

(m)

EURIBOR AVERAGE INTEREST RATES

Q3 2014 - Q2 2016

Source: Hipotecasyeuribor.com

Inte

rest

rate

of t

he E

urib

or

0.400

0.300

0.200

0.100

0.000

-0,100

-

-

-

-

-

-

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Jan-

15

Feb

-15

Mar

-15

Ap

r-15

Jun-

15

Jul-1

5

Aug

-15

Sep

-15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb

-16

Mar

-16

Ap

r-16

Jun-

16

Jul-1

6

Aug

-16

Sep

-16

- - - - - - - - - - - - - - - - - - - - - - -

110

100

90

80

70

60

-

-

-

-

-

-

- - - - - - - - - - - - - - - - - - - - - - -

Nov 2015 Jan 2016 Mar 2016 May 2016 Jul 2016 Sep 2016 1997 2000 2005 2010 2016

1.14

1.12

1.10

1.08

1.06

1.04

-

-

-

-

-

-

- - - - - - - - - - - - - - - - - - - - - - -

US Dollar


LU C AS FOXR E G I O N S

M A R E S M E

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VA L E N C I A

M A D R I D

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LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / REGIONS OVERVIEW9


• Barcelona city continues to see a monthly increase in sales of residential homes, with transaction volume growing 40% in the 12 months prior to June 2016.

• Property prices for all of Barcelona averaged €3,533 per square metre by the end of June 2016, up €141 over the average at the end of 2015, an increase of 4.16%.

• The first half of 2016 has seen increasing numbers of buyers from the Middle East and China. Around a quarter of Lucas Fox sales in Barcelona city were to national buyers.

• The main motivation for buying among foreign buyers is for a second residence/holiday home but there are also increasing numbers who are buying to obtain the ‘Golden Visa’.

• Foreign buyers are purchasing newly renovated properties in prime city locations such as Eixample Right and Barcelona Old Town, whereas Catalan buyers tend to seek homes as a primary residence in the upmarket Zona Alta district.

• Whilst Spanish interest in Maresme properties represents just over half of Lucas Fox website visitors, amongst international buyers the majority of interest comes from Western Europe and the United States.

• The majority of buyers in Maresme are looking at houses up to €700, 000 and the market is still dominated by re-sales as, despite the high demand, there is very little new construction in the area.

• The majority of Lucas Fox prime market property buyers on the Maresme Coast have been purchasing properties for their private use, either as a primary residence or secondary residence.

B A R C E LO N A C I T YOV E RV I E W

M A R E S M EOV E RV I E W

• Sitges average property prices have risen nearly 6% year-on-year, at €3,702 per square metre, up from €3,499 per square metre in June 2015.

• Sitges continues to attract significant international interest, with Lucas Fox seeing an even split between EU and non-EU buyers during the first half of 2016.

• 3 out of every 4 buyers so far this year are planning to use properties as their primary residence, compared with just 1 in 4 in 2015.

S I TG E SOV E RV I E W




• Madrid centre has seen prices increase for seven consecutive quarters. By the end of June 2016 Madrid centre reached an average price of €3,638 per square metre, an annual growth rate of 6.25%.

• International interest for Madrid property comes from the United States, Western Europe and the United Arab Emirates.

• New Development and renovated properties in the mid-market price range in central locations are the most sought-after homes among both national and international investors.

• Madrid ranked fourth in a 2016 league of European cities compiled by consultants PWC, based on a survey of investors’ and developers’ views on which property markets offer the best prospects.

M A D R I D OV E RV I E W

• Valencia average property prices have been increasing for almost every quarter since the end of 2014, with average prices in the Old Town reaching €2,349 per square metre by the end of June 2016, an annual growth rate of 7.8%.

• Valencia is predominantly a national market, with 66% of Lucas Fox website visitors coming from Spain. 2016 has so far seen an increase in US buyers.

• 2016 has been a strong year so far for passengers arriving at Valencia airport, with over 2.5 million passengers arriving by the end of June 2016, representing a 13.1% rise over the same period last year.

VA L E N C I AOV E RV I E W

• 2016 has seen an increase in sales volume in the province of Girona (which includes the Costa Brava), with a total of 4,091 sales transactions in the first six months, up from 3,627 in the same period of 2015, an increase of nearly 13%.

• The majority of Lucas Fox buyers have purchased holiday homes in the Costa Brava, although there are increasing numbers buying property as a primary residence. Data for the first half of 2016 also shows an increase in the number of buyers from the United States.

• The second half of 2016 is expected to show greater activity compared to the first two quarters of 2016, but a drop in interest from the United Kingdom is predicted given the weakening of the British Pound against the Euro following the UK’s vote to leave the EU (Brexit).

CO STA B R AVAOV E RV I E W




• In the first half of 2016 average monthly sales volume in the Balearics (which includes Ibiza) surpassed 1,000 transactions per month for the first time since 2007.

• Average prices in Ibiza have risen for the seventh consecutive quarter. The average price in Ibiza Town was €3,874 per square metre by June 2016, up from €3,022 per square metre at the same time last year, representing an annual growth of 28%. Average prices in Ibiza are currently €2,343 per square metre above the national average.

• 60% of Lucas Fox buyers have bought homes as a secondary residence with increasing numbers now purchasing for investment purposes given the annual increases in both sales and rental prices.

• According to Lucas Fox website data, the majority of international interest for Ibiza property comes from Western Europe and the United States.

I B I Z AOV E RV I E W

• Marbella average property prices rose to €2,454 per square metre, an annual growth rate of 5.78%. The districts of Estepona and Benahavís also saw significant price increases.

• New Development projects continue to be the product type most in demand, with many selling off-plan and sometimes above asking price.

• Marbella continues to be predominantly an international market, with only 38% of Lucas Fox website visitors coming from Spain. Amongst international buyers the majority of interest comes from the United States, Western Europe and Scandinavia, with increasing interest from Middle Eastern buyers.

M A R B E LLA- CO STA D E L S O L OV E RV I E W

N E W D E V E LO P M E N TS

• Over 75% of all Lucas Fox Barcelona New Development properties were bought by foreigners in the first half of 2016.

• New Developments are generally located in prime city locations such as Eixample and the Old Town in Barcelona, and Chamberí in Madrid. Ibiza and Marbella are also seeing increasing numbers of new projects.

• New Developments offer excellent potential for capital growth and decent rental returns. They are also attractive to lifestyle buyers who are either relocating or buying holiday homes.

• In the first six months of the year sales transactions of New Developments represented 40% of the Lucas Fox Barcelona office sales. There are potentially another 1,000 New Development units to hit the Barcelona market during the last two quarters of 2016 and during 2017.

• In all areas a significant proportion of these New Developments are being sold off-plan, almost always at asking price, with Lucas Fox Barcelona data showing an average rate of sales of 1 per week since the beginning of the year.


B A R C E LO N A

M A R K E T OV E RV I E WA N D FO R E C AST FO R 2 0 1 6

M A R E S M E

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LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / BARCELONA13


“IN 2015 WE SAW THE START OF NEW DEVELOPMENT PROJECTS COMING ONTO THE MARKET.

HOWEVER, DEMAND WAS LARGELY UNSATISFIED DUE TO THE LACK

OF AVAILABILITY OF THIS TYPE OF PRODUCT. SINCE THEN THERE HAS

BEEN CLEAR PROGRESS IN THE CONSOLIDATION OF THE PROPERTY

MARKET IN BARCELONA AND AS A RESULT PRICES HAVE ACTUALLY

STARTED TO RISE AGAIN.”

“BARCELONA IS NOW A PLAYER ON THE WORLD STAGE FOR PROPERTY

INVESTMENT ALONG WITH MADRID, LONDON, PARIS AND NEW YORK.”

Rod JamiesonHead of Operations,Lucas Fox Barcelona

BARCELONA: MARKET OVERVIEW

AND FORECAST FOR 2016

Barcelona has become one of Europe’s most exciting cities

and an excellent place to buy property as a second home,

investment or permanent residence.

Barcelona continues to attract international buyers and

investors seeking good long-term prospects and an

unparalleled quality of life. 2016 has seen numerous New

Development projects emerge in the city, a sign that the

property market recovery is well and truly underway.

The most sought-after property types are spacious 2 or

3-bedroom apartments in renovated Modernista style

buildings with original features in the city centre. The lower

right part of Eixample is especially in demand where several

high-end renovation projects are currently ongoing.

New Developments such as Marlet 1 in Barcelona Old Town are in high demand

“The real estate market in Barcelona has had an excellent year so far,” explains Lucas Fox Head of Operations Rod Jamieson. “Demand from foreign investors continues to be on the rise and at the same time the local market shows clear signs of recuperation. The increased supply of quality New Development and renovation projects that have become available during the year has had a direct positive influence on the company’s results in Q1 & Q2. In the first six months of the year sales transactions of New Developments represented 40% of the Barcelona office sales. The local market in Barcelona continues to gain force as the Spanish economy recovers, as bank financing becomes more readily available and interest rates remain low. There has been a significant increase in the amount of local enquiries during the first half of the year, so much so that they now account for more than 50% of our total enquiries. Barcelona is now a player on the world stage for property investment along with Madrid, London, Paris and New York.”

Barcelona is increasingly attracting more international High Net Worth Individuals thanks to its investment potential and lifestyle appeal. Several high-end developments have come onto the market, which is pushing up average prices.

“A year ago the property market was at the early stages in gaining confidence following the historic price correction and several years of inactivity,” continues Mr Jamieson. “In 2015 we saw the start of New Development projects coming onto the market. However, demand was largely unsatisfied due to the lack of availability of this type of product. Since then there has been clear progress in the consolidation of the property market in Barcelona and as a result prices have actually started to rise again.”

Investors buying property in Barcelona come from all over the world. There is continued demand from Northern European countries as well as an increasing number of Middle Eastern and Chinese buyers.




BARCELONA PROPERTY SALES TRANSACTIONS

Since the first quarter of 2013, property transactions in Barcelona city have shown a steady increase year-on-year.In the 12 months up to June 2016, Barcelona has seen significant monthly increases in property sales with transaction volume growing by 40%. In the first half of 2016 average sales volume was 3,282 per month, up from 2,676 sales per month on average in the first half of 2015, an increase of 22.65%.

TRANSACTION VALUE OF PURCHASESBY FOREIGN RESIDENTS

Amongst foreign buyers resident in Spain, transaction value of purchases of second-hand properties in Barcelona was 34.83% higher in the first quarter of 2016 than in the same

period in 2015 (€288,391,600 in Q1 2016 compared with €213,887,900 in Q1 2015). An increasing number of new builds and newly renovated properties have entered the market, with foreigners spending €30,521,700 on such properties in the first quarter of 2016, an increase of 56% on the same period in 2015.

Based on one quarter’s available data, the total transaction value of purchases of Barcelona property by foreign residents in Spain was 36.61% higher in 2016 than in the comparable period for 2015 (€318,913,300 in Q1 2016 compared with €233,450,000 in Q1 2015). Total transaction value of Barcelona property purchases by foreigners resident in Spain in 2015 grew by 16.1% over the amount of trading in 2014 (€1,181,647,500 in 2015 compared with €1,017,794,400 in 2014).

BARCELONA FREE HOUSING PROPERTY SALES TRANSACTIONS

PEAK (Q1 2007) AND Q3 2012 - Q2 2016

Source: Ine.es

Num

ber o

f sal

es tr

ansa

ctio

ns

Valu

e in

‘000

€

BARCELONA NEW AND SECOND-HAND PROPERTY TRADING:

TOTAL VALUE OF SALES TRANSACTIONS BY FOREIGN RESIDENTS

Q1 2013 - Q1 2016

Source: Spanish Department of Development

Spain (‘0s) Barcelona New properties Second-hand properties

0

50000

100000

150000

200000

250000

300000

350000

400000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Valu

e in

'000

€

New properties Second-hand properties

National buyers are continuing to return to the market as the local economy improves and buyers are able to obtain financing more easily. The Zona Alta district is where there is the highest level of activity for prime residential real estate transactions by local buyers.

Due to the high level of activity in the Barcelona property market during 2016, the difference between sales and asking prices has been reduced to a minimum. During the first half of 2016 Lucas Fox agents have been involved in a number of sales where properties have been purchased for more than the asking price due to the high demand for good quality properties in prime locations. The increase of New Development units on the market has also influenced this situation, as generally no negotiation is possible for these types of property sales.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Spain ('0s) Barcelona




BARCELONA PROPERTY PRICES

According to leading property portal Idealista, property prices for all of Barcelona averaged €3,533 per square metre by the end of June 2016, up €141 over the average at the end of 2015, an increase of 4.16%. The more prestigious, luxury districts of Eixample and Zona Alta ended the half-year with the highest average prices, on €4,132 and €4,548 per square metre respectively, compared with €3,747 and €4,211 per square metre at the end of Q2 2015 (showing an increase of 10.27% and 8% respectively). Eixample has now seen seven consecutive quarters of increases in average property prices. Nine of the ten districts of Barcelona saw increases in average prices between the end of 2015 and the end of Q2 2016.

€ /

m2

BARCELONA CITY AVERAGE PROPERTY SALES PRICES

PEAK (Q1 2007) AND Q1 2011 - Q2 2016

Source: Idealista.com

Ciutat VellaEixampleGràciaHorta Guinardó

Les CortsNou BarrisSant AndreuSant Martí

Sants - MontjuïcSarrià - Sant GervasiBarcelona City average

0

1000

2000

3000

4000

5000

6000

7000

€/m

2

Ciutat Vella Eixample Gràcia

Horta Guinardó Les Corts Nou Barris

Sant Andreu Sant Martí Sants-Montjuïc

Sarrià-Sant Gervasi Barcelona City Average

13 out of 26 apartments of the Casa Burés New Development in Eixample were sold in the private launch phase




BARCELONA MID-MARKETPROPERTY SALES TRANSACTIONS Barcelona trading of mid-market properties (valued at between €450,000 and €900,000) has increased every quarter over the corresponding quarter in the previous year since the start of 2013 with the exception of Q4 2015, which showed a slight decrease in sales compared with the same quarter in 2014. 1,734 mid-market properties were sold in Barcelona in 2015 (for which the latest data is available), representing 17.66% of the total Spanish mid-priced property market and showing an overall annual growth rate of 14.23%.

LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR PURCHASEFOR MID-MARKET PROPERTIES

National buyers continue to make up a significant proportion of mid-market property buyers with almost a quarter of Lucas Fox buyers coming from Spain. Data from the first half of 2016 shows the usual strong representation from Western Europe as well as an increasing number of buyers from Poland.

Following trends from 2015, holiday homes dominate purchasing decisions (36.17% of buyer motivations in the first half of 2016) in the mid-level property market. An increasing number of buyers are seeking an investment (29.79%) and those looking for a primary residence (frequently as part of a relocation to Barcelona) continue to make up almost a fifth of the market.

BARCELONA MID-MARKET PROPERTY SALES TRANSACTIONS

(BETWEEN €450,000 AND €900,000), Q1 2012 - Q4 2015


MID-MARKET PROPERTY BUYERS IN BARCELONA CITY: COUNTRY OF ORIGIN, Q1 & Q2 2016Source: Lucas Fox sales data

Num

ber o

f sal

es tr

ansa

ctio

ns

MID-MARKET PROPERTY BUYERS IN BARCELONA CITY: MOTIVATION FOR PURCHASE, Q1 & Q2 2016Source: Lucas Fox sales data

Barcelona Spain

SpainUnited KingdomFranceCanada / USAPolandSwitzerlandMiddle EastScandinaviaSouth AmericaOther EuropeOther

Primary ResidenceSecondary ResidenceGolden VisaInvestmentOther

0

500

1000

1500

2000

2500

3000

3500

4000

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Barcelona Spain

23%

6%

11%

9%6%6%

9%

4%

4%

9%

13%

Spain

UK

France

Canada / USA

Poland

Switzerland

Middle East (Egypt, Lebanon)

Scandinavia (Norway)

17%

36%13%

30%

4%Primary Residence

Secondary Residence

Golden Visa

Investment

Other




BARCELONA PRIME MARKET PROPERTY SALES TRANSACTIONS

(OVER €900,000), Q1 2012 - Q4 2015


BARCELONA CITY PRIME MARKET AVERAGE PROPERTY

SALES PRICES, Q1 2013 – Q4 2015Source: Lucas Fox sales data

Num

ber o

f sal

es tr

ansa

ctio

ns€

/ m

2

BARCELONA PRIME PROPERTY SALES TRANSACTIONS

In 2015 (for which the latest data is available) 321 properties valued at over €900,000 were sold across the province of Barcelona. This represents 17.42% of the Spanish prime market overall, around the same proportion of the market as in 2014.

Barcelona Spain

Barcelona prime marketOld TownEixample

Zona AltaBeachfront

0

1000

2000

3000

4000

5000

6000

7000

8000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

€/m

2

Barcelona prime market Eixample

Ciutat Vella Zona Alta

Beachfront

0

100

200

300

400

500

600

700

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900

Barcelona Spain




LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR PURCHASEFOR PRIME MARKET PROPERTIES

Following on from 2015, national buyers continue to make up a significant proportion of Lucas Fox prime property (valued at over €900,000) buyers, with almost a quarter of all buyers coming from Spain. Lucas Fox data for the first half of 2016 also shows a significant number of French and Scandinavian buyers.

Motivation for high-end property purchases in Barcelona is split fairly evenly between those looking for a primary residence (often as part of a relocation to the city), a secondary residence and an investment property.

PRIME MARKET PROPERTY BUYERS IN BARCELONA CITY:

COUNTRY OF ORIGIN, Q1 & Q2 2016

Source: Lucas Fox sales data

PRIME MARKET PROPERTY BUYERS IN BARCELONA CITY:

MOTIVATION FOR PURCHASE, Q1 & Q2 2016


BARCELONA CITY AVERAGE RENTAL PRICES

PEAK (Q2 2007) AND Q1 2011 - Q2 2016


€/m

2

SpainFranceScandinaviaOther

Primary ResidenceSecondary ResidenceInvestment

Ciutat VellaEixampleGràciaHorta Guinardó

Les CortsNou BarrisSant AndreuSant Martí

Sants - MontjuïcSarrià - Sant GervasiBarcelona average

23%

15%

23%

39%

Spain

France

Scandinavia (Finland, Sweden)

Other (Australia, Egypt, India, Kazakhstan, Phillipines)

31%

38%

31%Primary Residence

Secondary Residence

BARCELONA RENTAL MARKET The average rental prices for Barcelona city and for each individual district have risen substantially in all neighbourhoods, since the second quarter of 2013.

The overall average rental price for Barcelona city ended the first six months of 2016 on €16.10 per square metre, up €0.80 over the end of 2015 average. The city centre neighbourhood of Ciutat Vella and the inner city Modernista neighbourhood of Eixample ended the half-year on the highest rental prices, with Ciutat Vella now averaging €18.30 per square metre (up €0.70 from the end of 2015) and Eixample ending the second quarter of 2016 on €17.10 per square metre, up from €1.40 at the end of 2015.

02468

101214161820

Ciutat Vella Eixample Gràcia

Horta Guinardó Les Corts Nou Barris

Sant Andreu Sant Martí Sants-Montjuïc

Sarrià-Sant Gervasi Barcelona average




SHORT-TERM RENTAL DEMAND

Barcelona airport arrivals and the number of travellers staying in holiday apartments are good indicators of both the demand for short-term rental accommodation and for the potential benefit of purchasing property for investment as tourist accommodation or for use as a holiday home with some income generation during periods when the property is not in personal use, although tourist licences are still not available in Barcelona Old Town.

So far in 2016 demand for holiday apartment accommodation has again outperformed the previous year, with May and June

once again surpassing the corresponding months in 2015. 71,480 foreigners stayed in holiday apartments in June 2016 (up from 65,985 in June 2015). The number of foreigners staying in holiday apartments in Barcelona continues to grow year-on-year. Up until the end of June 2016, total foreign travellers staying in holiday apartments in Catalonia (the majority in Barcelona) reached 213,526, up from 198,305 for the first six months of 2015, indicating there has been little impact on the figures despite the freeze in short-term rental licences in Barcelona Old Town.

Airport arrival data shows an even clearer trend. Monthly passenger arrivals at Barcelona’s El Prat airport have been

higher for every month of this year so far over 2015 figures, which in turn were higher than in 2014. The first half of 2016 has seen an increase of 12.7% over passenger arrivals in the same period in 2015, with a total of over 20 million passenger arrivals.

Foreign travellers with Catalonia as a primary destination – the majority coming to Barcelona – rose again in the first half of 2016, maintaining its consistent proportion of hosting 25% of all international tourists visiting Spain, as it had in 2015. Almost 7.7 million foreign travellers visited Catalonia in the first half of 2016, an increase of 3% over the same period in 2015.

FOREIGN TRAVELLERS STAYING IN HOLIDAY APARTMENT

ACCOMMODATION, Q1 2011 - Q2 2016

Source: Ine.es

PASSENGER ARRIVALS AT BARCELONA AIRPORT

Q1 2011 - Q2 2016

Source: Aena-aeropuertos.es

FOREIGN TOURISTS WITH A PRIMARY TRAVEL DESTINATION IN

CATALONIA (INCLUDING BARCELONA), Q1 2012 - Q2 2016

Source: Frontur (estadisticas.tourspain.es)

Fore

ign

trav

elle

rs (‘

000s

)

Pass

enge

r arr

ival

s (‘0

00s)

Inte

rnat

iona

l tou

rists

(‘00

0s)

2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 20162012 2013 2014 2015 2016

0

20

40

60

80

100

120

140

160

180

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

2011 2012 2013 2014 2015 2016

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000


2011 2012 2013 2014 2015 2016

0

500

1.000

1.500

2.000

2.500

3.000

Jan Feb Mar Apr May Jne Jul Aug Sept Oct Nov Dec

2012 2013 2014 2015 2016




WEBSITE INTEREST IN BARCELONA PROPERTY: COUNTRY OF ORIGIN, Q1 & Q2 2016Source: Lucas Fox sales data

LUCAS FOX WEBSITE INTEREST

Over half of all interest in Barcelona properties on the Lucas Fox website comes from Spanish residents (up from 51% at the end of 2015 to 54.1% at the end of Q2 2016), with 11% of website visitors coming from the United Kingdom and 6.6% from the United States, both following a similar trend to the figures at the end of 2015. European buyers from France, Germany, the Netherlands and Sweden also regularly review Barcelona properties on the website.

SpainUnited KingdomUnited StatesOther EuropeOther

54%

11%

7%

10%

18%Spain

UK

United States

Other Europe

Other




LUCAS FOX PREDICTS

“We are optimistic that our business will continue to grow throughout the rest of the year in Barcelona. There are potentially

another 1,000 New Development units to hit the market during the last two quarters of 2016 and 2017 and we believe that demand

from international and local buyers will continue to rise, based on the current favourable conditions. Property prices in Barcelona

city are still 30% below the peak of 2007, which offers an excellent potential for long-term capital growth. At the same time the

availability of financing at such low rates is reactivating the local market providing superb opportunities.”

Rod JamiesonHead of Operations, Lucas Fox Barcelona


M A R E S M E


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / MARESME23


“THE MARKET IS STILL DOMINATED BY RE-SALES WITH VERY LITTLE

NEW CONSTRUCTION IN THE AREA, ALTHOUGH THERE DOES SEEM TO

BE A GROWING APPETITE FOR NEW DEVELOPMENTS IN THE MARESME REGION. INTERNATIONAL BUYERS

REMAIN ACTIVE ALTHOUGH THE DEMAND IS NOW GREATER AMONGST NATIONAL BUYERS.”

Tom MaidmentPartner, Lucas Fox Maresme

MARESME: MARKET OVERVIEW


The Lucas Fox Maresme office is situated in the pretty

town of Alella, around 20 minutes from Barcelona city.

With over 30km of sandy beaches, numerous marinas,

several quality golf courses, a protected natural park, a

unique microclimate and easy access to one of Europe’s

most cosmopolitan cities, there are few Mediterranean

locations that offer such an attractive and varied lifestyle

as the Maresme Coast. Recent government data showed

that four of Maresme’s towns were in the top twelve

locations for Spain’s highest income earners. Its growing

appeal is reflected in the 350% increase in the number of

international buyers over the past decade. The Maresme

Coast is predominantly a primary residence area,

particularly the southern part of the coast where Lucas Fox

focuses its sales operations, so it has not been affected

by the UK’s decision to leave the EU to the extent that

traditional secondary home resort areas have been.

“In general we are continuing to see an increase in activity from local buyers, predominantly for properties priced up to €700,000,” explains Lucas Fox Maresme Partner Tom Maidment. “The market is still dominated by re-sales with very little new construction in the area, although there does seem to be a growing appetite for New Developments in the Maresme region. International buyers remain active although the demand is now greater amongst national buyers. The prime market remains very slow with a limited number of transactions and demand over the €1.5 million market. However, properties priced under €1 million now tend to see

minimal scope for negotiation – perhaps 5% to 8% – whilst properties priced at over €1 million tend to see greater discrepancy between advertised price and selling price – often in excess of 10%.”

Lucas Fox Maresme has seen an increase in sales activity in 2016 compared to the same period in 2015. The number of enquiries, viewings and offers has also increased significantly. The main difference is that confidence amongst national clients is on the increase with many now ready to invest in the market.

“Given the ongoing recovery of the Spanish economy, the drop in unemployment and historic low interest rates, we expected confidence amongst the local market to increase and this has proved to be the case,” adds Mr Maidment. “The Barcelona city market has been liquid for a couple of years now but it always takes time for the market to follow suit in areas outside the city. We are beginning to see this now in Maresme as people start to recognise the opportunities outside the city and have sufficient confidence in the market and the economy to invest.”

The key nationalities in the Maresme region tend to be the Spanish and Northern Europeans. There is also interest from non-EU nationals including Russian and Middle Eastern buyers as well as, more recently, Americans looking to benefit from the strong Dollar. Local clients tend to show a strong preference for townhouses, new build apartments and houses near the centre of villages. For foreigners, modern houses with good sea views under €1 million, often with good access to the nearest international school, are proving the most popular.

There tends to be less demand for rustic properties in the Maresme, partly because of the lack of this type of product, although unique historic properties often attract interest from investors.




LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR PURCHASE

The majority of Lucas Fox prime market property buyers on the Maresme Coast have been purchasing properties for their private use, either as a primary residence (50%) or secondary residence (33.33%), with the remainder buying as an investment.

Following an emergence of national buyers in 2015, local clientele continue to form a large proportion of Lucas Fox property buyers with a third of all buyers coming from Spain. Alongside strengthening domestic interest, Maresme properties are still highly sought after by buyers from the United Kingdom, followed by those from France and the Middle East.


Whilst Spanish interest in Maresme properties represents just over half (56.1%) of Lucas Fox website visitors, amongst international buyers the majority of interest comes from Western Europe and the United States.

MARESME PROPERTY BUYERS:



WEBSITE INTEREST IN MARESME PROPERTY:


Source: Lucas Fox website data

MARESME PROPERTY BUYERS:



SpainUK / IrelandFranceMiddle East

Primary ResidenceSecondary ResidenceInvestment 56%

10%

4%3%

3%2%

2% 1%1%

18%

SpainUnited KingdomFranceUnited StatesSwitzerlandGermanyNetherlandsDenmarkSwedenOthers

SpainUnited KingdomFranceUnited StatesSwitzerlandGermanyNetherlandsDenmarkSwedenOther

50%

33%

17%

Primary Residence

Secondary Residence

Investment

33%

33%

17%

17%Spain

UK / Ireland

France

Middle East (Saudi Arabia)




LUCAS FOX PREDICTS

“The outlook is looking very positive. The recovery of the local market is continuing apace and the level of interest

from international buyers shows no signs of abating so we expect the volume of transactions to increase as the year progresses. The market recovery may also see

more sellers being enticed back to the market and a subsequent increase in the quality of inventory for sale.”

Tom MaidmentPartner, Lucas Fox Maresme


S I TG E S


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / SITGES27


“I BELIEVE THE GAP IS CLOSING BETWEEN SALES AND ASKING PRICE AS OWNERS ARE FINALLY REALISING

ONLY CORRECTLY PRICED PROPERTIES WILL ATTRACT VIEWINGS AND

CONSEQUENTLY A POTENTIAL SALE. IF A PROPERTY IS PRICED CORRECTLY

ACCORDING TO THE CURRENT MARKET THEN IT WILL SELL.”

“WE CONTINUE TO SEE A HIGH LEVEL OF INTEREST FROM

POTENTIAL BUYERS BUT THESE CLIENTS ARE MORE HESITANT TO COMMIT TO A PURCHASE,

ATTRIBUTABLE TO THE CURRENT INSTABILITY OF THE WORLD

ECONOMY, WHICH IS AFFECTING BUYERS OF ALL NATIONALITIES.”

Rachel HaslamDirector, Lucas Fox Sitges

SITGES: MARKET OVERVIEW


Opened in July 2014, Lucas Fox Sitges operates in the town

of Sitges as well as the international enclaves of Gavà Mar

and Castelldefels and the beautiful wine-growing region of

Penedès. Sitges town and its surrounding areas remain a

popular investment hub for European investors including, in

recent months, growing numbers of Scandinavians. Interest

from local buyers in this area continues to increase, especially

with the recent boom in development in the area, offering

some attractive good deals on new builds.

“The beginning of 2016 was slightly blighted by the looming uncertainty of Brexit,” comments Lucas Fox Sitges Director Rachel Haslam. “We hope, however, that it will not have too negative an impact on the market. We continue to see a high level of interest from potential buyers but these clients are more hesitant to commit to a purchase, attributable to the current instability of the world economy, which is affecting buyers of all nationalities. There are many buyers who have stalled in the process whilst they wait and see what will happen.”

Sitges clients tend to be fairly young – from 35 to 55 years old – families or couples looking to relocate or to buy a holiday home that can also be rented out short-term. There are also increasing numbers of investors, who are buying with the idea of settling in the near future when they take early retirement. Buyers continue to be interested in properties with sea views and within walking distance of the town and beach.

“I believe the gap is closing between sales and asking price as owners are finally realising only correctly priced properties will attract viewings and consequently a potential sale. If a property is priced correctly according to the current market then it will sell,” adds Ms Haslam.




SITGES PROPERTY PRICES

According to leading property portal Idealista, Sitges average property prices ended the first half of 2016 on €3,702 per square metre, up from €3,499 per square metre in June 2015, representing a 5.8% annual growth rate. Sitges average prices have risen every quarter for the past ten consecutive quarters, since the fourth quarter of 2013, and continue to sit above the Barcelona average, ending the half-year €169 per square metre higher than the Barcelona average.

The first two quarters of 2016 have seen average property prices rise in Castelldefels, where they ended the half-year on €2,771 per square metre, representing an annual growth

SITGES AVERAGE PROPERTY SALES PRICES

PEAK (Q1 2007) AND Q1 2011 - Q2 2016


€/m

2

Sitges Castelldefels Gavà Barcelona

SITGES PROPERTY BUYERS:



SITGES PROPERTY BUYERS:



SpainMiddle EastOther EuropeOther

Primary ResidenceSecondary Residence

0

1000

2000

3000

4000

5000

6000

€/m

2

Sitges Casteldefells Gava Barcelona average

75%

25% Primary Residence

Secondary Residence

25%

25%25%

25%

Spain

Middle East (Israel)

Other Europe (Netherlands)

Other (India)

rate of 8.28%. Prices in Gavà show the market seeking its bottom. Average prices have risen and fallen for the past year as the market settles at a price point where buyers and sellers can agree on value.


The first half of 2016 has seen a change in Lucas Fox buyer trends in Sitges with 75% of all buyers so far this year planning to use properties as their primary residence, compared with 25% in 2015. The first six months of 2016 saw an even split between EU and non-EU Lucas Fox buyers.




SITGES RENTAL MARKET

Following a pronounced jump in 2015, Sitges average long-term rental prices saw a slight drop in the first quarter of 2016 (for which the latest data is available) ending on €12.40 per square metre. Despite the slight drop, there has still been an annual growth rate of 8.77% since the end of March 2015. Average rental prices in Castelldefels and Gavà have also dropped slightly, ending the first quarter on €13.00 and €12.10 per square metre respectively. However, prices here have also shown annual growth rates of 10.17% and 16.35 respectively since the end of March 2015.

The short-term rental market is particularly buoyant in and around Sitges. A family house in the hills with a pool 10 minutes from Sitges that can be bought for €400,000 to €500,000 can achieve €2,500 to €3,000 per week in high season. Equally, an attractive 2-bedroom seafront apartment would achieve about the same rate and would also rent out throughout the year due to Sitges’ busy cultural calendar, which includes the Carnival in February and the world-renowned Film Festival in October.


Whilst for most regions in Spain Spanish visitors to the Lucas Fox website account for around half of all visitors, those looking for Sitges properties account for less, at 41.6% of visitors, indicating the strength of Sitges as an international market. UK buyers account for almost one in five website visitors (18.8%), with interest in properties also strong from France (7.8%) and the United States (4.9%).

SITGES AVERAGE RENTAL PRICES

Q1 2011 - Q1 2016


€/m

2

WEBSITE INTEREST IN SITGES PROPERTY:



SpainUnited KingdomFranceUnited StatesNetherlandsGermanySwedenSwitzerlandBelgiumOther

0

2

4

6

8

10

12

14

16

18

€/m

2

Sitges Casteldefells Gava Barcelona average

Sitges Casteldefells Gavà Barcelona average

41%

19%

8%

5%3%

3%2% 2%

1%

16%

SpainUnited KingdomFranceUnited StatesNetherlandsGermanySwedenSwitzerlandBelgiumOthers




LUCAS FOX PREDICTS

“Sitges is expanding rapidly to meet the increased demand from buyers and investors, with apartment complexes and new houses springing

up all over town. This coupled with more attractive prices on existing property is bound to attract

more international and national buyers.”

Rachel HaslamDirector, Lucas Fox Sitges


M A D R I D


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / MADRID32


“IN 2016 SO FAR WE HAVE SEEN THE GAP BETWEEN SALES AND ASKING PRICES REDUCE TO THE LOWEST

LEVELS IN RECENT YEARS. FOR RE-SALE PROPERTIES THE AVERAGE

NEGOTIATION ACHIEVED IS AROUND 5% LOWER THAN THE ASKING PRICE.”

Rod JamiesonDirector, Lucas Fox Madrid

MADRID: MARKET OVERVIEW


Madrid boasts Spain’s most iconic cultural landmarks, a

growing gastronomic scene and an aspirational standard of

living. The Lucas Fox Madrid office is located in Justicia next to

the desirable Salamanca district, where it is home to eight staff.

This vibrant capital offers diverse properties, from traditional

and contemporary apartments in exclusive districts to spacious

family homes in the suburbs. The past year has seen many local

buyers return to the market as well as growing numbers of

international investors. Madrid ranked fourth in a 2016 league

of European cities compiled by consultants PWC and based on

a survey of investors’ and developers’ views on which property

markets offer the best prospects.

International buyers are mainly interested in purchasing property for investment purposes and some also to obtain the Golden Visa, allowing them permanent residency and free access to the Schengen zone countries. Lucas Fox receives a lot of interest from Middle Eastern, Asian and Latin American investors for this reason, most of whom are motivated by finding security for their families in a place that has access to excellent education and healthcare facilities.

“The property market in Madrid for the first half of 2016 has remained active although uncertainty due to the political situation in Spain and Europe may have slightly softened transaction closings,” explains Lucas Fox Head of Operations Rod Jamieson. “New Development and renovated projects in the mid-market price range from €450,000 to €900,000

The Madrid property market is the largest in Spain and has a diversified mix of national and international buyers. Property investments in Madrid are offering increasingly higher returns as rental prices are rising, thanks to a recovering local economy. One can expect an average annual yield return between 4% and 5% from most properties located in key central areas of the city.

Property prices remain attractive compared to eight years ago, and in some prime areas prices are beginning to increase. The most sought-after property is usually a renovated 2-bedroom apartment in a classical building with an attractive façade and period features. These buyers tend to look in prime central city locations, such as Salamanca, Justicia, Chamberí and Cortes.

in central locations of the capital are still the most sought-after by both national and international investors. The supply of these types of property in the market remains far short of demand. However increasing numbers of projects are starting to become available.”

A year or so ago, property transactions made by national market investors started to increase due to the availability of mortgage financing again. Thanks to record low interest rates, there has been growing demand from buyers all over Spain looking to purchase a second home or investment in the capital. International demand has also developed further as Madrid continues to receive positive press coverage due to its undeniable investment potential. It is estimated that Madrid property prices are still undervalued by an average of 30%, indicating there is significant room for capital growth in the long-term.

The local market represents around three-quarters of the Lucas Fox business so far this year and these national investors come from all areas of Spain including Andalucía, Extremadura, the Canaries and Madrid. Almost a quarter of transactions closed in the first half of the year are with international investors coming from Latin America and Asia.

“In 2016 so far we have seen the gap between sales and asking prices reduce to the lowest levels in recent years. For re-sale properties the average negotiation achieved is around 5% lower than the asking price,” adds Mr Jamieson. “When it comes to New Development and renovation projects there is no negotiation possible and prices are even rising based on the rate of sale of units sold in the projects.”




MADRID FREE HOUSING PROPERTY SALES TRANSACTIONS

PEAK (Q1 2007) AND Q1 2014 - Q2 2016

Source: Ine.es

MADRID PROPERTY SALES TRANSACTIONS

The Comunidad region of Madrid closely matches national sales transactions patterns, and has done so for the past two years. Sales transactions in Madrid for the first half of 2016 averaged 4,656 per month, increasing the levels of trading over the average of 3,840 monthly transactions during the same period in 2015. This represents an annual growth rate in levels of property transactions of 21.25% in the past year.


Amongst foreign buyers resident in Spain, transaction value of purchases increased each quarter in 2015 over 2014 levels, and this trend continues into 2016, where Q1 total transaction value is higher in 2016 than in 2015 (€197,775,100 in Q1 2016 compared with €159,974,600 in Q1 2015, representing an increase of 23.63%). Total transaction value of Madrid property purchases by foreigners resident in Spain in 2015 grew by 23.14% over the amount of trading in 2014 (€775,151,700 in 2015 compared with €629,492,700 in 2014).

MADRID PROPERTY PRICES

Key luxury districts in Madrid continue to show rising average prices in 2016, as greater demand for properties influences asking prices. Since seeing some price correction in the third quarter of 2014 and a steadying in price, Madrid centre has increased in average price for seven consecutive quarters. By the end of June 2016, Madrid centre reached an average price of €3,638 per square metre, an annual growth rate of 6.25%. The affluent districts of Chamartín, Chamberí and Salamanca all continue to see slight increases each quarter in average price, reaching €3,915 per square metre (annual growth rate of 4,68%), €3,960 per square metre (annual growth rate of 5.18%) and €4,531 (5.57% growth) respectively. Following trends from 2015, prices for Madrid districts overall have continued to rise slightly, with the city’s average ending the second quarter of 2016 on €2,866 per square metre, up €46 over end of 2015 averages.

Num

ber o

f sal

es tr

ansa

ctio

ns

Valu

e in

‘000

€

€/m

2

MADRID KEY LUXURY DISTRICTS AVERAGE PROPERTY SALES PRICES

PEAK (Q1 2007) AND Q1 2011 - Q2 2016


MADRID NEW AND SECOND-HAND PROPERTY TRADING: TOTAL VALUE

OF SALES TRANSACTIONS BY FOREIGN RESIDENTS, Q1 2013 – Q1 2016


New properties Second-hand propertiesSpain (‘0s) Madrid

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Spain ('0s) Madrid

0

50000

100000

150000

200000

250000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Valu

e in

'000

€


0

1000

2000

3000

4000

5000

6000

€/m

2

Centre Chamartin

Chamberi Salamanca

Madrid City Average

CentreSalamanca

ChamartínMadrid City average

Chamberí




MADRID PRIME MARKET PROPERTY SALES TRANSACTIONS

(OVER €900,000), Q1 2012 - Q4 2015


MADRID MID-MARKET PROPERTY SALES TRANSACTIONS

(BETWEEN €450,000 AND €900,000), Q1 2012 - Q4 2015


Num

ber o

f sal

es tr

ansa

ctio

nsN

umbe

r of s

ales

tran

sact

ions

MADRID MID-MARKET PROPERTYSALES TRANSACTIONS

Madrid mid-market property sales (where properties sell for prices between €450,000 and €900,000) follow similar trends to sales across all of Spain, with Madrid sales making up a third (33.14%) of the total Spanish mid-level property market in 2015. In 2015 (for which the latest data is available) there were 3,254 properties sold in Madrid for between €450,000 and €900,000, 437 properties more than in the previous year, representing an annual growth rate of 15.51%.

MADRID PRIME PROPERTY SALES TRANSACTIONS

In 2015 (for which the latest data is available) 571 properties valued at over €900,000 were sold in Madrid, representing 31% of the Spanish prime property market. The number of prime property transactions grew by 7.94% in 2015 over the level of sales transactions in 2014.


Amongst Lucas Fox property buyers in Madrid in the first two quarters of 2016, two-thirds of purchases have been made by buyers looking for an investment property, with the remainder looking for a primary residence, often following a relocation to the Spanish capital. There has been a slight change in buyer demographics, with almost 80% of buyers coming from Spain, with the remainder coming from Asia and South America.

MADRID PROPERTY BUYERS:



MADRID PROPERTY BUYERS:



Primary ResidenceInvestment

SpainAsiaSouth America

Madrid Spain

Madrid Spain

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Madrid Spain

0

100

200

300

400

500

600

700

800

900

1000

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Madrid Spain

33%

67%

Primary Residence

Investment

78%

11%

11%

Spain

Asia (Singapore)

South America (Venezuela)




MADRID AVERAGE RENTAL PRICES

PEAK (Q2 2007) AND Q1 2011 - Q2 2016


WEBSITE INTEREST IN MADRID PROPERTY:



PASSENGER ARRIVALS AT MADRID AIRPORT

2013 - Q2 2016


INTERNATIONAL TOURISM TO MADRID

Q1 2013 - Q2 2016

Source: Frontur (estadisticas.tourspain.es)

Pass

enge

r arr

ival

s (‘0

00s)

€/m

2

Inte

rnat

iona

l tou

rists

(‘00

0s)

MADRID RENTAL MARKET

Average rental prices have continued to increase in all luxury districts and across Madrid as a whole during the first two quarters of 2016.

Madrid’s city centre remains the highest, ending the half-year on an average rental price of €16.00 per square metre, representing an annual growth rate of 16.79%. The prestigious district of Salamanca increased to an average price of €15.60 per square metre, a growth rate of 13.04% over the averages at the end of the half-year in 2015. Chamartín and Chamberí also increased their averages to €13.90 and €15.20 per square metre respectively.

TOURISM

Airport arrival data is a strong indicator of international demand for properties in the Madrid region. Passengers arriving at Madrid Barajas airport in the first six months of this year rose by 8.57% over the same period in 2015. 23.6 million passengers have passed through Madrid’s Barajas airport in the first two quarters of 2016.

International tourism to the Spanish capital has also grown in the first half of 2016, recording a 9% increase over the same six-month period in 2015. Unlike other Spanish key tourism zones, international travellers tend to visit Madrid in spring and autumn rather than summer. Over 2.7 million international tourists have visited the capital so far this year, representing 8.23% of the total Spanish international tourism market.


Spanish interest in Madrid properties represents just under half (45.4%) of Lucas Fox website visitors, matching visitor demographics from 2015, although this figure is disproportionate to the proportion of actual buyers (almost 80% of Lucas Fox Madrid sales) in the Spanish capital. Amongst international buyers the majority of interest comes from the United Kingdom (10.7% of website visitors), the United States (10%), France (4%) and the United Arab Emirates (1.9%).

SpainUnited KingdomUnited StatesFranceUnited Arab EmiratesSwitzerlandGermanyPortugalChinaOther

2013 2014 2015 2016 2013 2014 2015 2016

CentreSalamanca

ChamartinMadrid City average

Chamberi


0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000


2013 2014 2015 2016

45%

11%

10%

4%2%

2% 2%1% 1%

22%

SpainUnited KingdomUnited StatesFranceUnited Arab EmiratesSwitzerlandGermanyPortugalChinaOthers

0

100

200

300

400

500

600

Jan Feb Mar Apr May Jne Jul Aug Sept Oct Nov Dec

2013 2014 2015 2016

0

2

4

6

8

10

12

14

16

18

20

€/m

2

Centre Chamartin

Chamberi Salamanca

Madrid City Average





LUCAS FOX PREDICTS

“We are optimistic that our business will continue to grow throughout the rest of 2016. Madrid is an underdeveloped market that has come very recently into the spotlight internationally. There is great

potential for long-term capital growth, being Europe’s third largest capital with property prices that continue to be reasonable compared to the likes of London and Paris. The attractiveness of

the city continually amazes newcomers with its rich history, diverse culture, beautiful architecture, renowned gastronomy and excellent year-round climate, offering an enviable quality of life.

Following the UK’s decision to leave the EU, the financial sector in Madrid potentially stands to gain heavily from international financial institutions wishing to decentralise from London to other

more cost-effective locations. We expect demand for property in Madrid to continue to grow from international and national investors in the short and mid-term. We believe that, with the

combination of the increasing supply of quality new and renovated properties and continued low mortgage rates, we will see significant gains over the next two to three years.”

Rod JamiesonHead of Operations, Lucas Fox Madrid


VA L E N C I A


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / VALENCIA38


“THE DATA FROM THE FIRST QUARTER OF THE YEAR SHOWS AN INCREASE

IN OVERALL SALES. THE REAL ESTATE MARKET IN 2016 HAS REMAINED POSITIVE DESPITE THE POLITICAL

UNCERTAINTY IN SPAIN.”

“2015 WAS A GOOD YEAR FOR THE REAL ESTATE SECTOR AND 2016 IS CONTINUING ON THE SAME

UPWARD PATH.”

Juan Luis HerreroPartner, Lucas Fox Valencia

VALENCIA: MARKET OVERVIEW


An increasing demand for upmarket properties led to Lucas Fox opening its doors in Valencia in 2013. The company’s latest Property Lounge was inaugurated in the Eixample district in summer 2016, where it now houses its nine staff. This vibrant city of Roman Heritage is the third largest in Spain and is home to many globally recognised attractions including the City of Arts and Sciences. Valencia is an excellent choice for investors thanks to its exceptional climate – the city enjoys over 300 days of sunshine a year and an average temperature of 18ºC – and enviable outdoor lifestyle. Growing numbers of different nationalities are showing interest in property in the area with buyers from France, Italy, Holland, Sweden, Switzerland and the United Kingdom forming the majority.

“2015 was a good year for the real estate sector and 2016 is continuing on the same upward path,” explains Lucas Fox Valencia Partner Juan Luis Herrero. “The data from the first quarter of the year shows an increase in overall sales. The real estate market in 2016 has remained positive despite the political uncertainty in Spain.”

The most popular type of product continues to be Modernista apartments in the Eixample district, measuring between 140m² and 220m², with high ceilings and quality finishes and situated in an excellent location.




VALENCIA NEW AND SECOND-HAND PROPERTY TRADING: TOTAL VALUE



VALENCIA AVERAGE PROPERTY SALES PRICES

PEAK (Q1 2007) AND Q1 2011 - Q2 2016


Valu

e in

‘000

€

€/m

2

VALENCIA PROPERTY SALES TRANSACTIONS

The city and surrounding area of Valencia has closely matched the prevailing national trend in property sales transactions for the past two years. Valencia averaged 1,598 sales per month in the first half of 2016, over 250 more sales per month than the average in 2015.


Amongst foreign buyers resident in Spain, the transaction value of purchases in the Valencia city region increased each quarter in 2015 over 2014 levels, which in turn were higher than each of their equivalent quarters in 2013, with Q4 2015 seeing the strongest level of trading in the past three years. As with other Spanish markets, the transactional value of purchases of new properties makes up only a small amount of overall trading (6.3%), predominantly due to the absence of new stock. Total purchase value of property transactions in Valencia amongst foreign investors for the first quarter of 2016 totaled almost €65 million, showing a slight decrease from the previous quarter but a growth rate of 32.81% over the last twelve months.

VALENCIA PROPERTY PRICES

Valencia average property prices have been increasing for almost every quarter since the end of 2014, with average prices in the Old Town (Ciutat Vella) reaching €2,349 per square metre by the end of June 2016, representing an annual growth rate of 7.8%. For the region as a whole, average prices ended the half-year on €1,486 per square metre, up from €1,438 at the end of 2015.

VALENCIA FREE HOUSING PROPERTY SALES TRANSACTIONS

PEAK (Q1 2007) AND Q1 2014 - Q2 2016

Source: Ine.es

Num

ber o

f sal

es tr

ansa

ctio

ns


Spain (‘0s) Valencia Ciutat Vella Valencia average

0

10000

20000

30000

40000

50000

60000

70000

80000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Valu

e in

'000

€


0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

€/m

2

Ciutat Vella Valencia Average

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Spain ('0s) Valencia




VALENCIA MID-MARKET PROPERTYSALES TRANSACTIONS

Sales transactions for mid-market properties (valued at between €450,000 and €900,000) in Valencia largely followed national trends, with Valencia accounting for about 1.2% of all property sales transactions in 2015 (for which the latest data is available), down slightly from being 1.4% of the Spanish mid-level property market in 2014.

VALENCIA PRIME PROPERTY SALES TRANSACTIONS

2015 (for which the latest data is available) saw an annual increase of 138% of properties sold for more than €900,000 in the Valencia city region. This represents 1.7% of all sales of prime market properties sold in Spain in 2015.

VALENCIA MID-MARKET PROPERTY SALES TRANSACTIONS

(BETWEEN €450,000 AND €900,000), Q1 2012 - Q4 2015


VALENCIA PRIME MARKET PROPERTY SALES TRANSACTIONS

(OVER €900,000), Q1 2012 - Q4 2015


Num

ber o

f sal

es tr

ansa

ctio

ns

Num

ber o

f sal

es tr

ansa

ctio

ns

Valencia Spain (‘0s) Valencia Spain (‘0s)

0

50

100

150

200

250

300

350

400

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Valencia Spain ('0)

0

10

20

30

40

50

60

70

80

90

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Valencia Spain ('0)




VALENCIA PROPERTY BUYERS:



VALENCIA PROPERTY BUYERS:



VALENCIA AVERAGE RENTAL PRICES

Q1 2011 - Q2 2016



Over half of Lucas Fox property buyers in Valencia are seeking a primary residence, which may involve relocation from other parts of Spain or internationally, with the remainder of buyers seeking a secondary/holiday home.

Continuing buyer trends from previous years, Valencia sees two-thirds of the Lucas Fox buyer market coming from Spanish investors in the first half of 2016. The remainder of the market is split between Western Europe, Scandinavia and Russia.

VALENCIA RENTAL MARKET

Following a readjustment in the second half of 2015, average rental prices have increased by 9.68% since the end of 2015, ending the half-year on €6.80 per square metre. Average rental prices in the nearby southern regional area of Alicante have also risen, ending the half-year on €6.40 per square metre, representing an increase of 6.67% since the end of 2015.

€/m

2


SpainRussiaScandinavia Other Europe

Alicante Valencia

56%

44% Primary Residence

Secondary Residence67%

11%

11%

11%Spain

Russia

Scandinavia (Sweden)Other Europe (Italy) 0

1

2

3

4

5

6

7

8

€/m

2

Alicante Valencia




TOURISM

2016 has been a strong year so far for passengers arriving at Valencia airport, with over 2.5 million passengers arriving by the end of June 2016. This represents a 13.1% rise over the same period last year.

International tourism continued to increase in 2015, growing by 4.2% over international visitor numbers for the previous twelve-month period (that is, from the fourth quarter of 2014 to the end of the third quarter in 2015). The Valencia region hosted 5.2 million international tourists in the first three quarters of 2015 (for which the latest data is available). We are unable to ascertain trend data for 2016 as no data has been released since the third quarter of 2015.


Valencia is predominantly a national market, with 65.6% of Lucas Fox website visitors looking at Valencia properties coming from Spain. Amongst international buyers Valencia properties see interest primarily from Western Europe and the United States.

WEBSITE INTEREST IN VALENCIA PROPERTY:



SpainUnited KingdomUnited StatesSwitzerlandBelgiumNetherlandsGermanyFranceItalyOther

INTERNATIONAL TOURISM TO VALENCIA

Q1 2013 – Q3 2015

Source: Frontur (estadisticas.tourspain.es) (no data since Sep 2015 has been released)

PASSENGER ARRIVALS AT VALENCIA AIRPORT

Q1 2013 - Q2 2016


Inte

rnat

iona

l tou

rists

(‘00

0)Pa

ssen

ger a

rriv

als (

‘000

)

66%10%

4%

2% 2%

1% 1%

1%1%

12% SpainUnited KingdomUnited StatesSwitzerlandBelgiumNetherlandsGermanyFranceItalyOthers

0

100

200

300

400

500

600

700

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015 20162013 2014 2015 2016

2013 2014 2015

0

200

400

600

800

1.000

1.200

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015




LUCAS FOX PREDICTS

“The outlook for the property market for the rest of the year is positive due to the growth rate of the Spanish economy and good macroeconomic

indicators. This trend may be accelerated if the uncertainty over the future Spanish government is finally resolved. Good residential tourism statistics

are helping the property sector and the outlook is moderately positive. Valencia continues to be a very good region to invest in thanks to the

possibility to buy at a good price in prime locations.”

Juan Luis HerreroPartner, Lucas Fox Valencia


CO STA B R AVA


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / COSTA BRAVA45


“THERE IS STRONG DEMAND FOR SEA VIEW COASTAL PROPERTIES IN PRIME

AREAS UP TO AROUND €800,000, INCLUDING DETACHED VILLAS

AND PROPERTIES IN COMMUNAL DEVELOPMENTS, ALTHOUGH THERE IS LIMITED QUALITY STOCK AT THIS

PRICE LEVEL.”

“WE ARE JUST BEGINNING TO SEE SOME NEW CONSTRUCTION IN

THE REGION. THIS IS A CLEAR SIGN OF GROWING CONFIDENCE IN THE MARKET AND AFTER THE LACK OF

NEW DEVELOPMENTS DURING THE PROPERTY CRISIS THIS SHOULD PROVE TO BE AN IMPORTANT STIMULUS FOR DRIVING INCREASED SALES ACTIVITY

IN THE COMING YEARS.”

Tom MaidmentPartner, Lucas Fox Costa Brava

COSTA BRAVA: MARKET OVERVIEW


The Costa Brava office was opened in 2007 and is headed

up by Tom Maidment who manages a team of five at its

Property Lounge in the heart of Begur, one of the region’s

most desirable towns. The Costa Brava is one of the most

beautiful and unspoilt stretches of Spain’s vast Mediterranean

coastline, and continues to attract the most discerning local

and international property buyers.

The key nationalities in the Costa Brava remain the British,

French and Spanish. Within Europe there is also significant

interest from the Benelux countries, the Swiss and an

increasing number of enquiries from German buyers. From

outside the EU there is also interest from American, Middle

Eastern and Israeli buyers. Having held off for many years,

national buyers are now rapidly gaining in confidence and

returning to the market.

2016 started positively but the market slowed during the second quarter of the year, which could be put down to political uncertainty both in Spain and in the UK as the noise around a possible EU exit for the UK reached its crescendo.

Whilst there is significant movement at the lower/mid-end of the market Lucas Fox has seen a limited number of transactions in the prime market in the first semester of

2016. This can be put down to a number of factors including depressed oil prices in Russia and the Middle East, global concerns over the slowdown in the Chinese economy and general uncertainty in the run-up to Brexit.

“In general, the number of enquiries and viewings has remained fairly consistent for properties priced up to around €1.2 million,” states Mr Maidment. “As the Spanish economy continues to grow, we may well see more sellers returning to the market and this, in turn, should freshen up the re-sale inventory, attract more buyers and stimulate even greater movement.”

After years of inactivity by developers, there are a few signs now of some New Development projects in the Costa Brava. ”In recent years the Costa Brava market has been dominated by re-sale property,” continues Mr Maidment. “We are just beginning to see some new construction in the region. This is a clear sign of growing confidence in the market and after the lack of New Developments during the property crisis this should prove to be an important stimulus for driving increased sales activity in the coming years.”

“There is strong demand for sea view coastal properties in prime areas up to around €800,000, including detached villas and properties in communal developments, although there is limited quality stock at this price level. We are also seeing strong interest for rustic stone houses in the medieval villages of the Empordà, priced up to around €900,000. First line properties are always in demand as are quality modern villas with sea views.”

Costa Brava properties that have been on the market for a number of years have, in general, already been reduced substantially and sales prices are close to asking price. Likewise, new listings are adjusted to current market conditions so the gap between sales and asking prices has closed substantially and continues to narrow.




COSTA BRAVA PROPERTY SALES TRANSACTIONS

Property sales transactions across the Girona region, including the Costa Brava, remained steady in 2015 with an average of 612 property sales every month. 2016 has seen an increase in sales volume with a total of 4,091 sales transactions in the first six months (an average of 682 per month), up from 3,627 in the same period of 2015, an increase of 12.8%.

TRANSACTION VALUE OF PURCHASE BY FOREIGN RESIDENTS Whilst total sales value amongst foreign residents for Girona property purchases (which includes the Costa Brava) was less in 2015 than in 2014 (€476.5 million in 2015 compared with €491.6 million in 2014), the first quarter of 2016 has seen an increase in transaction value over the same period in 2015. In the first quarter of 2016 foreigners purchased €103.3 million worth of property in the Girona and Costa Brava area, compared with €98.1 million in the first quarter of 2015. This represents an annual growth rate of 5.3%.

COSTA BRAVA PROPERTY PRICES

Costa Brava average property prices varied from €1,132 per square metre in Cadaqués in the region’s far north to €1,943 per square metre for properties in L’Escala and Roses. Overall, average prices show slight variations up and down each quarter, suggesting the market is finding its level.

GIRONA (INCLUDING COSTA BRAVA) NEW AND SECOND-HAND PROPERTY

TRADING: TOTAL VALUE OF SALES TRANSACTIONS BY FOREIGN RESIDENTS

Q1 2013 – Q1 2016


GIRONA (INCLUDING COSTA BRAVA) FREE HOUSING PROPERTY SALES

TRANSACTIONS, PEAK (Q1 2007) AND Q3 2012 - Q2 2016

Source: Ine.es

COSTA BRAVA AVERAGE PROPERTY SALES PRICES

Q3 2010 - Q2 2016


Num

ber o

f sal

es tr

ansa

ctio

ns

Valu

e in

‘000

€

€/m

2

L’Escala (Roses)Palafrugell / Tamariu / Llafranc (Palamós)Cadaqués (Figureres)

Spain (‘0s) Girona (including Costa Brava) New properties Second-hand properties

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Spain ('00s) Girona (including Costa Brava)

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Valu

e in

'000

€


0

500

1000

1500

2000

2500

3000

€/m

2

Cadaques (Figueres)Palafrugell/ Taimariu/ Llafranc (Palamós)L'Escala (Roses)




COSTA BRAVA MID-MARKET PROPERTYSALES TRANSACTIONS

The Girona (and Costa Brava) mid-level property market is a small part of the total Spanish market, representing around 2.5% of the overall market. In 2015 (for which the latest data is available) 254 properties were sold for between €450,000 and €900,000 in the region, down from 306 properties in 2014.

COSTA BRAVA PRIME PROPERTYSALES TRANSACTIONS

Prime market property transactions have seen some of the most dynamic trading in the Costa Brava. In 2015 (for which the latest data is available) 53 properties valued at over €900,000 were sold, up from 47 properties in 2014.

GIRONA (INCLUDING COSTA BRAVA) PRIME MARKET PROPERTY SALES

TRANSACTIONS (OVER €900,000), Q1 2012 - Q4 2015


Num

ber o

f sal

es tr

ansa

ctio

ns

GIRONA (INCLUDING COSTA BRAVA) MID-MARKET PROPERTY SALES

TRANSACTIONS (BETWEEN €450,000 AND €900,000), Q1 2012 - Q4 2015


Num

ber o

f sal

es tr

ansa

ctio

ns

Girona (including Costa Brava) Spain Girona (including Costa Brava) Spain

0

500

1000

1500

2000

2500

3000

3500

Girona (including Costa Brava) Spain

0

100

200

300

400

500

600

700

800

Girona (including Costa Brava) Spain




COSTA BRAVA PROPERTY BUYERS:



COSTA BRAVA PROPERTY BUYERS:



WEBSITE INTEREST IN COSTA BRAVA PROPERTY:



SpainUnited KingdomFranceUnited StatesNetherlandsSwitzerlandGermanyBelgiumSwedenOther

UKCanada / USARussia


33%

67%

Primary Residence

Secondary Residence

50%

33%

17%

UK

Canada / USA

Russia51%

14%

7%

4%3%

2% 2%2% 1%

14%

SpainUnited KingdomFranceUnited StatesNetherlandsSwitzerlandGermanyBelgiumSwedenOthers


Continuing buyer trends from previous years, the majority of Lucas Fox buyers are looking at the Costa Brava for a secondary/holiday home, although an increasing number of buyers are looking for property to use as their primary residence. Lucas Fox data for the first half of 2016 shows an increase in the number of buyers from the United Kingdom and the United States, with a continued presence from Russia.


Just over half of Lucas Fox website visitors originate from Spain, continuing trends from 2015. The majority of international interest in Costa Brava properties comes from the United Kingdom (14.3% of website visitors looking at Costa Brava properties on the Lucas Fox website) and France (7.1%). Buyers from the United States, the Netherlands and Switzerland round out the top five international visitors.






LUCAS FOX PREDICTS

“Traditionally Lucas Fox’s Costa Brava office sees a higher volume of sales in the second half of the year. Whilst we will inevitably see a drop in demand from British buyers whilst Sterling continues to struggle against the Euro, I

would expect interest from other EU and non-EU buyers to remain high and local buyers to return to the market in ever-increasing numbers. Spain’s

economy continues to grow and there should be a new government in place within the next two to three months, which should give the residential property

market the solid foundation it needs from which to continue its recovery.”

Tom MaidmentPartner, Lucas Fox Costa Brava



M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


MARBELLA-COSTA DEL SOL

LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / MARBELLA-COSTA DEL SOL51


“STYLE, DESIGN AND QUALITY ARE VERY IMPORTANT. THIS CAN BE REFLECTED

IN THE SALES AND PRICES WITH MODERN OFF-PLAN PROPERTIES BEING MUCH MORE POPULAR THAN OLDER,

CLASSICAL DESIGNS.”

“THERE HAS BEEN A SIGNIFICANT INCREASE IN THE NUMBER OF QUALITY MODERN STANDARD PROJECTS BEING BUILT IN THE COSTA DEL SOL AND THE

MOST POPULAR PROJECTS ARE SELLING OUT QUICKLY WHILST STILL OFF-PLAN.”

“GOOD LOCATION AND/OR VIEWS ARE OFTEN A MUST. WITHOUT DOUBT

SELLERS ARE FAR LESS OPEN TO NEGOTIATION THAN BEFORE.”

Stephen LahiriPartner, Lucas Fox Marbella

MARBELLA: MARKET OVERVIEW


Established in Spring 2013 and headed up by Stephen Lahiri,

Lucas Fox Marbella is based in the desirable Nueva Andalucía

district. Sometimes described as the ‘California of Europe’,

the Costa del Sol attracts both cosmopolitan tourists and a

discerning international population. Its excellent climate and

exclusive lifestyle makes this an ideal location for a holiday

home, investment or permanent residence. Marbella continues

to be very international and now attracts a much broader

range of nationalities, including increasing numbers from the

Middle East. So far in 2016 most interest has been from Europe

with Scandinavian, Belgium, Dutch, French and Swiss clients

leading the way. The profile of buyer is also becoming younger

– in their 40s or early 50s.

“There has been a significant increase in the number of quality modern standard projects being built in the Costa del Sol and the most popular projects are selling out quickly whilst still off-plan,” explains Lucas Fox Marbella Partner Stephen Lahiri. “Properties in prime locations continue to be in most demand and as a result prices have been increasing significantly. On the other hand there are still some very good deals to be had for those clients who are more flexible on the location but still want to be only five to ten minutes from the beach and main hotspots.”

The most popular properties continue to be those that are close to facilities and the beaches. 2016 has seen a significant increase in New Development properties in Marbella, both apartments and villas. These turnkey products appeal to those who want a ready-made product without the hassle of renovation. They also appeal to clients looking for a long-term investment. There has been a lack of supply of distressed properties for sale resulting in a slowdown in the numbers of speculative purchases from buyers who are buying to renovate and sell on. Most buyers are buying for pleasure, either as a holiday home or as a permanent residence. As the supply of new off-plan properties grows, these properties are becoming an increasing percentage of sales in Marbella.

“Clients tend to opt for modern, designer properties with the latest features,” adds Mr Lahiri. “Style, design and quality are very important. This can be reflected in the sales and prices with modern off-plan properties being much more popular than older, classical designs. There is quite a lot of demand for small, modern style villas in gated urbanisations in preference to larger properties or luxury apartments. Good location and/or views are often a must. Without doubt sellers are far less open to negotiation than before.”

Most developers selling new properties are not negotiating on price. They sometimes increase the prices of remaining units as sales are coming in. Sellers with properties in more inland locations, perhaps ten minutes further back from the coast, are far more open to negotiation.




MARBELLA NEW AND SECOND-HAND PROPERTY TRADING: TOTAL VALUE



MARBELLA AND KEY DISTRICTS AVERAGE PROPERTY SALES PRICES

Q1 2011 - Q2 2016


Valu

e in

‘000

€

€/m

2

MÁLAGA (INCLUDING MARBELLA) FREE HOUSING PROPERTY SALES

TRANSACTIONS, PEAK (Q1 2007) AND Q1 2013 - Q2 2016

Source: Ine.es

Num

ber o

f sal

es tr

ansa

ctio

ns

MARBELLA PROPERTY SALES TRANSACTIONS

The province of Málaga saw a more dynamic property trading atmosphere than was reflected in the broader Spanish market in 2015, with an average of 1,944 property sales transactions of free housing per month. In the first half of 2016, average sales volume was 2,102 per month, up from 1,926 sales per month on average in the first half of 2015, an increase of 9.14%.


After a year of increasing quarterly sales volume throughout 2014 (over corresponding periods in 2013) amongst foreign buyers resident in Spain, the transaction value of purchases made across the Málaga region (which includes Marbella) was lower in the first quarter of 2015 than in the first quarter of 2014, but saw much higher transactions in the following

2016 has, however, seen an increasing number of New Development properties entering the market. Lucas Fox’s exclusive development Anamaya Villas is one of around fifteen New Developments to be launched on this popular stretch of coastline this year.

MARBELLA PROPERTY PRICES

Marbella’s average property prices rose to €2,454 per square metre (a 5.78% annual growth rate) in the first half of 2016. Average property prices in the key districts of Benahavís and Estepona have also risen. The exclusive zone of Benahavís ended June 2016 on €2,032 per square metre (an 11.46% annual growth rate). Average property prices in Estepona ended the half-year on €1,648 per square metre (a 10.38% annual growth rate).

three quarters of 2015. Total purchase value of property transactions made by foreign buyers in Málaga totalled more than €1.8 billion in 2015, a 12.93% increase over the total transaction value in 2014. Purchases of new properties make up only a small amount of overall trading, due to the absence of available new stock in the market but demand continues to be very high. Total purchase value of property transactions made by foreign buyers in Málaga for the first quarter of 2016 reached €473 million, a slight decrease from the previous quarter’s figures, following similar trends to recent years where the first quarter shows a lower transaction volume.

There has been growing demand for high quality designer properties on the Costa del Sol during the last two to three years. As the demand for high quality turnkey homes outstrips supply, developers are having to come up with new concepts for homes and compete for overseas clients.

New properties Second-hand propertiesSpain (‘0s) Málaga (including Marbella) Benahavís Estepona Marbella

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Spain ('0s) Malaga (incl Marbella)

0

100000

200000

300000

400000

500000

600000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016


0

500

1000

1500

2000

2500

3000

Benahavís Estepona Marbella




MARBELLA MID-MARKET PROPERTYSALES TRANSACTIONS

Sales transactions for mid-market properties (valued at between €450,000 and €900,000) in Málaga largely followed national trends, with the region that includes Marbella accounting for about 11% of all sales transactions in 2015 (for which the latest data is available), the same proportion as in 2014.

MARBELLA PRIME PROPERTY SALES TRANSACTIONS The number of prime property transactions in Málaga (which includes Marbella) grew by 6.2% in 2015 over the level of sales transactions in 2014. In 2015 (for which the latest data is available) 222 properties valued at more than €900,000 were sold, representing 12% of all sales of prime market properties in Spain in 2015.

LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR PURCHASE In the first two quarters of 2016 Lucas Fox data shows that the property market is split evenly between those looking for a secondary/holiday home and those seeking an investment property.

Lucas Fox property buyers so far this year have been split evenly between the Middle East and Europe.

MARBELLA PROPERTY BUYERS:



MARBELLA PROPERTY BUYERS:



MÁLAGA (INCLUDING MARBELLA) MID-MARKET PROPERTY SALES

TRANSACTIONS (BETWEEN €450,000 AND €900,000), Q1 2012 - Q4 2015


MÁLAGA (INCUDING MARBELLA) PRIME MARKET PROPERTY SALES

TRANSACTIONS (OVER €900,000), Q1 2012 - Q4 2015


Num

ber o

f sal

es tr

ansa

ctio

ns

Num

ber o

f sal

es tr

ansa

ctio

ns

Málaga (including Marbella) Spain Málaga (including Marbella) Spain

Secondary ResidenceInvestment

Middle EastEurope

0

500

1000

1500

2000

2500

3000

3500

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Malaga (including Marbella) Spain

0

100

200

300

400

500

600

700

800

900

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Malaga Spain

50%50%

Secondary Residence

Investment

50%50%

Middle East (Kuwait)

Europe (Sweden)




PASSENGER ARRIVALS AT MÁLAGA-COSTA DEL SOL AIRPORT

Q1 2011 - Q2 2016


MARBELLA AVERAGE RENTAL PRICES

Q1 2011 - Q2 2016

Source: Idealista.com, Fotocasa.es

WEBSITE INTEREST IN MÁLAGA PROPERTY:



Pass

enge

r arr

ival

s (‘0

00s)

€/m

2

MARBELLA RENTAL MARKET

Following a substantial rise in 2015, average rental prices in Estepona and Marbella have continued to increase in the first six months of 2016. Marbella ended the half-year on €9.91 per square metre, up €1.10 over end of 2015 averages. Average rental prices in Estepona were €7.68 per square metre by the end of the second quarter of 2016, up €1.09 over end of 2015 averages. Having seen a small decrease in the first quarter of 2016, average rental prices across all of the Málaga region returned to their end of 2015 level, ending the half-year on €7.80 per square metre.

A new rental law similar to that in Barcelona is set to be passed in Andalucía by the end of 2016, imposing greater regulations on the market. This is likely to have a significant impact on the rental market, particularly on price and the number of rental properties available.

TOURISM Airport arrival data is a strong indicator of international demand for properties in the Marbella region. Passengers arriving at Málaga-Costa del Sol airport during the first six months of 2016 rose by 14.6% over the corresponding period in 2015, making 2016 another record-breaking year after a consistent increase every year in airport arrivals since 2011. In the first half of 2016 passenger arrivals to Málaga-Costa del Sol airport reached over 7.3 million.


Marbella is predominantly an international market, with only 38.1% of Lucas Fox website visitors looking at Marbella properties coming from Spain. Amongst international buyers the majority of interest comes from the United Kingdom (16.5% of website visitors), the United States (8.9%), the Netherlands (3.6%) and Sweden (3.2%).

2011 2012 2013 2014 2015 2016

Estepona (Fotocasa)Málaga average (Idealista)

Marbella (Fotocasa)

SpainUnited KingdomUnited StatesNetherlandsSwedenFranceGermanyBelgiumSwitzerlandOther

0

2

4

6

8

10

12

Estepona (Fotocasa)Marbella (Fotocasa)Malaga average (Idealista)

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000


2011 2012 2013 2014 2015 2016

38%

16%9%

4%3%

3%3%

2%2%

20%

Spain

United Kingdom

United States

Netherlands

Sweden

France

Germany

Belgium

Switzerland

Others




LUCAS FOX PREDICTS

“There will be some effect on the lower end of the market due to the prospect of the UK leaving the EU, but we expect it to have minimal impact on the Lucas Fox business. Other nationalities continue to be interested in Marbella, in particular those from Scandinavia and the Benelux countries, and there is also a lot of interest from French buyers. Marbella continues to be a big favourite for clients from the Middle East and we expect the usual

high demand and influx of clients during the rest of the year, particularly as they now turn their focus away from London and the UK.”

Stephen LahiriPartner, Lucas Fox Marbella


I B I Z A


M A R E S M E

S I TG E S


VA L E N C I A

M A D R I D

B A R C E LO N A

COSTA BRAVA


LUCAS FOX / REAL ESTATE MARKET Q1 & Q2 2016 / IBIZA57


“WE ALSO HAVE AN EVER-INCREASING

DATABASE OF CLIENTS LOOKING FOR

NEW OFF-PLAN DEVELOPMENTS, WHICH

ARE IN EXTREMELY SHORT SUPPLY.“

“AS EVER, THERE IS AN EQUAL SPLIT OF

THOSE AFTER THE ULTRA-MODERN,

SUPER SLEEK AND MINIMALIST

DESIGNS, AND THOSE LOOKING FOR

THE TRADITIONAL IBICENCO FINCAS,

UNIQUE TO THIS ISLAND.”

Susana SánchezDirector, Lucas Fox Ibiza

IBIZA: MARKET OVERVIEW


The Ibiza office has been running successfully since 2008

and is now based in the pretty coastal town of Santa Eulària

on the east of the island. The island’s idyllic combination

of untouched countryside, jutting cliffs and sandy beaches

with turquoise waters continues to attract more buyers year

after year, securing Ibiza as an ever-popular investment

and lifestyle destination. The island remains popular

with buyers from Northern Europe, including the United

Kingdom, Germany and Scandinavia, and has recently

seen significant growth in interest from US investors.

Renovation projects continue to be popular and are easy

to rent out during the summer season. There are also more

buyers taking advantage of the increased liquidity from the

Spanish banks and ‘cheap money’ being available again,

especially investors looking to leverage their purchase.

“Ibiza continues to be a very attractive property investment hotspot,” comments Lucas Fox Ibiza Director Susana Sánchez. “This year we have seen more German clients and the French market is becoming increasingly more important for us. 2016 has continued to be extremely positive, with demand continuing to outstrip supply and investors looking all over the island for deals, particularly for land with licences to build. We believe that Ibiza will always continue to thrive, whatever other external economic conditions there are.”

As with previous years there is a definitive trend of clients looking to purchase in the quieter north of the island. The San Rafeal – Santa Gertrudis – San Lorenzo triangle is now the area most in demand after Es Cubells and surrounding areas in the south west. The recently completed San Juan main road running through the spine of the island also makes access to the north easier.

“As ever, there is an equal split of those after the ultra-modern, super sleek and minimalist designs, and those looking for the traditional Ibicenco fincas, unique to this island,” adds Ms Sánchez. “We also have an ever-increasing database of clients looking for new off-plan developments, which are in extremely short supply since the White Angel Development behind Pacha sold out so well. However, there are a number of exciting plans in the pipeline over the next few years which should create a lot interest.”

Asking prices in Ibiza are generally less negotiable than elsewhere in Spain, due to owners knowing that the properties can sometimes bring in up to 10% rental yields per year. As demand tends to outstrip supply for all types of properties, owners are also in a stronger position to negotiate final sales prices, as long as the product is of good quality.





Transaction value of purchases started the year strong, with total transaction value of new and second-hand properties purchased by foreign residents in the Balearics (predominately in Ibiza) during the first quarter of 2016 totalling more than €350 million, over 50% more than in the first quarter of 2015. Total purchase value of property transactions across the Balearics (predominantly in Ibiza) for all of 2015 was over €1.3 billion, representing an annual growth rate of 40.3%. Foreign investors spent €33,869,100 on new build housing in Ibiza in the first quarter of 2016, an annual increase of almost 60%.

IBIZA PROPERTY PRICES

Whilst national average property prices continued to decline very slightly in the first half of 2016, average prices in Ibiza continue to rise, for the seventh consecutive quarter. The average price in Ibiza Town reached €3,874 per square metre by June 2016, up from €3,022 per square metre the same time last year, representing an annual growth of a massive 28.19%. Prices can be as high as €12,000 and range from €6,500 to €9,000 in the exclusive area of Marina Botafoch. Average prices in Ibiza are currently €2,343 per square metre above the national average.

BALEARIC ISLANDS (INCLUDING IBIZA) NEW AND SECOND-HAND PROPERTY

TRADING: TOTAL VALUE OF SALES TRANSACTIONS BY FOREIGN RESIDENTS

Q1 2013 – Q1 2016


IBIZA AVERAGE PROPERTY SALES PRICES

Q3 2010 - Q2 2016


BALEARIC ISLANDS (INCLUDING IBIZA) FREE HOUSING PROPERTY

SALES TRANSACTIONS, PEAK (Q1 2007) AND Q3 2012 - Q2 2016

Source: Ine.es

IBIZA PROPERTY SALES TRANSACTIONS

Sales trading in the Balearic Islands (which includes Ibiza) has shown a more robust incremental increase in sales activity for the past year than is evident in trends for the overall Spanish property market. Particularly since the end of 2014, Ibiza has been marching to its own drum, with trading much more pronounced than the Spanish incremental increases in transactions. In the first half of 2016, this has increased significantly again, with average monthly sales volume surpassing 1,000 transactions per month for the first time since 2007.

Num

ber o

f sal

es tr

ansa

ctio

ns

Valu

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‘000

€

€/m

2

New properties Second-hand propertiesSpain (‘0s) Balearic Islands (including Ibiza) Ibiza Town Spain

0

500

1000

1500

2000

2500

3000

Spain ('0s) Balearics (incl. Ibiza)

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Valu

e in

'000

€


0

500

1000

1500

2000

2500

3000

3500

4000

4500

Ave

rage

€/m

2

Ibiza average Spanish average




BALEARICS MID-MARKET PROPERTYSALES TRANSACTIONS

Sales transactions for mid-market properties (valued at between €450,000 and €900,000) in Ibiza follow national trends, with total transactions on the Balearic Islands making up a substantial proportion of national sales. In 2015 (for which the latest data is available) 11.4% of all mid-market property transactions in Spain occurred in the Balearic Islands, predominantly Ibiza, up from 9.6% in 2014.

BALEARICS PRIME PROPERTY SALES TRANSACTIONS

Following national trends, trading of prime properties across the Balearic Islands (predominantly in Ibiza) was lower in the first quarter of 2015 than in the last quarter of 2014. Trading almost doubled in the second quarter of 2015 and ended the year with a total of 335 prime properties (properties valued at over €900,000) sold. This represents 18.2% of all sales of prime market properties in Spain in 2015 (for which the latest data is available).


Amongst Lucas Fox property buyers in Ibiza in the first two quarters of 2016, 60% of purchases have been made by buyers looking for a secondary residence with the remainder seeking an investment property. This is driven by increasingly high rental prices and sales prices that are notably above the national average, providing buyers with excellent rental and investment opportunities.

2016 has continued to see a large proportion of Lucas Fox property buyers coming from Western Europe, including Germany, the United Kingdom and Belgium. This is consistent with the demographics of buyers in previous years.

BALEARIC ISLANDS (INCLUDING IBIZA) MID-MARKET

PROPERTY SALES TRANSACTIONS (BETWEEN €450,000

AND €900,000), Q1 2012 - Q4 2015


Valu

e in

‘000

€

Valu

e in

‘000

€

BALEARIC ISLANDS (INCUDING IBIZA) PRIME MARKET PROPERTY

SALES TRANSACTIONS (OVER €900,000), Q1 2012 - Q4 2015


Balearic Islands (including Ibiza) Spain Balearic Islands (including Ibiza) Spain

IBIZA PROPERTY BUYERS:



IBIZA PROPERTY BUYERS:



United KingdomGermanyOther Europe

Secondary ResidenceInvestment

0

500

1000

1500

2000

2500

3000

3500

4000

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Balearics Spain

0

100

200

300

400

500

600

700

800

900

1000

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Balearics Spain

60%

40%Secondary Residence

Investment

40%

40%

20%UK

Germany

Other Europe (Belgium)




PASSENGER ARRIVALS AT IBIZA AIRPORT

Q1 2011 - Q2 2016


Pass

enge

r arr

ival

s (‘0

00s)

IBIZA AVERAGE RENTAL PRICES

Q1 2013 - Q2 2016

Source: Fotocasa.es

IBIZA RENTAL MARKET

Ibiza rental averages continue to follow an annual summer trend, where demand increases across the middle of the year, driving up averages in Q2 and Q3. In 2015 average rental prices were at their highest in Q2, when properties were being rented for an average of €15.14 per square metre, an 8.92% increase over 2014 summer average rentals. Q2 2016 saw a decrease in average rental prices, ending the half-year on €13.97. However, the average rental price in Q1 2016 was €12.13 per square metre, an increase of 16.2% over the same period in 2015.

TOURISM

Airport passenger arrivals data is a strong indicator of international interest in Ibiza, as almost all travellers to the island by plane arrive from international destinations. This year again saw an increase in airport passenger arrivals, with a 17% increase between mid-year 2015 and mid-year 2016. Passenger arrivals have been higher every month of this year so far over the corresponding months in 2015. In the first half of 2016 passenger arrivals to Ibiza airport reached over 2.6 million.


Whilst Spanish interest in Ibiza properties represents just under half (47.4%) of Lucas Fox website visitors, amongst international buyers the majority of interest comes from the United Kingdom (12.8% of website visitors), France (6%) and the United States (5.5%). Buyers from the Netherlands, Germany and Switzerland also show strong levels of interest.

WEBSITE INTEREST IN IBIZA PROPERTY:



€/m

2

Ibiza

SpainUnited KingdomFranceUnited StatesNetherlandsGermanySwitzerlandBelgiumItalyOther

0

2

4

6

8

10

12

14

16

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

€/m

2

Ibiza

47%

13%

6%

5%

5%

3%

3% 2%

2%

14%SpainUnited KingdomFranceUnited StatesNetherlandsGermanySwitzerlandBelgiumItalyOthers

2011 2012 2013 2014 2015 2016

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800

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1200

1400


2011 2012 2013 2014 2015 2016




LUCAS FOX PREDICTS

“We expect to see more Middle Eastern interest, more American interest and more interest from Asia. Asking

prices for existing good quality villas and land with licences already in place are likely to harden and demand for new

apartments will intensify. Also the high-end rental market will continue to go from strength to strength.”

Susana SánchezDirector, Lucas Fox Ibiza


W W W. LU C AS FOX .CO M

BARCELONA

COSTA BRAVA

GIRONA

IBIZA

MADRID

MARBELLA-COSTA DEL SOL

MARESME COAST

SITGES

VALENCIA

ANDORRA

PORTUGAL

LUCAS FOX HEAD OFFICE

Pau Claris, 108. Principal. 08009 Barcelona, Spain · CIF: B64125438

T (+34) 933 562 989 · F (+34) 933 041 848 · E [email protected]


MARKET REPORTS Q1 & Q2 2016

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Transcript of MARKET REPORTS Q1 & Q2 2016