Residential Markets Fastest Growth Since 2016, Savills Reports
The residential property market has shown promising resilience in the first half of 2021.
Savills has now released their report entitled Prime Index: World Cities – Capital Values, giving an insight into today’s market. They report strong capital value growth averaging 3.9% across 30 cities in the six months leading up to June 2021. This is the fastest rate since December 2016.
The report cites several reasons for property price increases, including “sustained record-low-interest rates, improved buyer confidence, increased transactions at higher price points, and economic stimulus measures”.
Although performance varied between locations, over 70% of the 30 cities showed capital growth. Those that didn’t all have a historic reliance on international buyers in prime markets, which has been limited by travel restrictions.
Savills also notes that sales volumes are increasing in many cities, too. They predict that low interest rates will continue to contribute to this, while the return of international travel should increase demand for prime property in some locations.
How the pandemic has affected buying preferences in Spain, France, Italy, and Portugal
A separate report published by Savills earlier this year surveyed around 500 buyers looking for a property in France, Italy, Portugal, and Spain during February and March 2021.
Although it’s unclear whether the pandemic is the cause, it seems homebuyers today are interested in countryside properties. The report reveals that 50% of people looking for a main residence are planning to buy in a rural environment. This increases to 80% for those seeking a second home.
And when it comes to second homes, Savills reports that buyers intend to spend more time there. Almost three quarters (74%) of those surveyed expect to work from home at least one day a week after the pandemic, meaning owners can spend more time at their second home.
What buyers want in Spain
The report also details what buyers are looking for in Spain, listing features that respondents rated as “somewhat important” or “very important”. Over half the buyers surveyed were British and 11% were German. So, which features are the most desirable today?
Well, when it comes to property features, “a good view” ranked highest at 94%, just above high-speed internet at 87%. Energy efficiency was the most important environmental feature at 70%. As for the local area, proximity to amenities ranked at 90%, a little ahead of proximity to a beach at 77%.
Buying and selling in Mallorca
Whether you decide to buy or sell a property on the island of Mallorca, it’s important to understand the local market and have a good team of experts around you. At Balearic Properties, we are the exclusive partners of Savills on the island, combining a global reputation with insider knowledge from our local offices.