Latest Property Market Insights & What You Need to Know
Welcome to our latest property market update for Granada and the Costa Tropical. This month, we cover some major headlines that have stirred conversation among buyers and sellers alike. From the rumored new purchase tax to new development plans in Motril and changes in tourist rental licenses, here’s what you need to know. To see the full video interview of this, just click to watch it at the bottom of this page.
1. The Non-Resident Property Tax – Reality vs. Media Hype
One of the biggest talking points in January was the news surrounding a proposed tax increase for non-resident, non-EU buyers. Spanish Prime Minister Pedro Sánchez mentioned, in passing, the idea of a 100% increase in purchase tax for this group as part of a wider long-term plan. The media—especially in the UK and the U.S.—ran with the story, creating panic among potential buyers.
What’s the reality?
- This was a brief mention in a long-term plan, not an official policy.
- Most regional governments have already dismissed the idea.
- Even international business leaders at the Davos forum pointed out that such a tax would hurt investment in Spain and is unlikely to pass.
Our take? Don’t panic. Nothing is set in stone. The Spanish property market remains stable and open to international buyers. We’ll keep you updated on any real developments.
2. Big Plans for Motril’s Tourism Growth
Motril, a key hub on the Costa Tropical, has announced a new long-term development project, including four new sustainable four-star hotels. Unlike the overdevelopment seen on the Costa del Sol, this project is focused on responsible tourism and job creation.
Why does this matter to buyers and sellers?
- Increased tourism brings greater property demand in surrounding areas, including Lecrin Valley and Salobreña.
- Expansion of the cruise ship port and transport links could drive higher rental demand.
- If you’re thinking of selling, now is a great time, as the area’s visibility is set to grow.
This development could be a game-changer for the region, attracting new investors and homebuyers looking for both holiday homes and long-term residences.
3. Tourist Rental Licenses – What’s Changing?
Tourist rental regulations are tightening across Spain, and January saw further restrictions announced:
- Malaga has paused issuing new tourist licenses in 43 neighborhoods for three years.
- Granada has completely stopped issuing new licenses and has permanently banned them in certain historic areas, including the Albaicín.
For buyers, this means:
- Properties with existing tourist licenses are more valuable than ever.
- Expect stricter requirements in the future, such as needing a First Occupation License.
- If you’re looking to buy for short-term rentals, get expert guidance on the latest legal landscape.
Sellers with tourist-licensed properties should highlight this in their listings—demand is rising!
4. Surge in U.S. and U.K. Buyers – What’s Driving Demand?
We’ve seen a significant increase in buyers from the U.S. and the U.K., particularly in the first few weeks of the year. What’s behind the trend?
- The end of Spain’s Golden Visa: Buyers looking to secure residency are rushing to finalize purchases before the scheme closes in April 2025.
- Non-lucrative visas are now more popular for those who don’t meet the Golden Visa threshold.
- Many Americans are looking for European property investments due to political and economic shifts back home.
If you’re a seller, now is the time to list your property. Waiting until spring means more competition. Right now, demand is high, and supply is still limited.
Thinking of Buying or Selling? Talk to Us First
If you have any questions about these updates and how they affect your plans to buy or sell in the Lecrin Valley or Costa Tropical, get in touch. Don’t rely on misleading headlines or advice from social media—speak directly with our team for honest, expert guidance.
📞 Contact us today and let’s talk about your options. Tel: 0034 858 215 333
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Final Thoughts
January 2025 has kicked off with a lot of market activity, but the key takeaway is that there’s no reason to be alarmed. Spain remains a fantastic place to invest, and whether you’re buying or selling, the market is full of opportunity. Stay informed, work with trusted professionals, and make your property decisions based on facts—not media hype.
We’ll be back next month with another update. Until then, happy house hunting!
