In this month’s property market update for Granada and the Costa Tropical, we delve into key developments, market statistics, and emerging trends that are shaping the region’s real estate landscape. Whether you’re buying, selling, or simply keeping an eye on the market, here’s what you need to know.
Lecrin Valley: Works Licences and Their Impact
In the Lecrin Valley, there are currently 177 properties on the market, with an average asking price of €134,000 or €920 per square metre. However, a significant issue has arisen concerning works licences. Many sellers are discovering that incomplete or outdated works licences are hindering their ability to sell. This problem often stems from past renovations that were either not properly documented or failed to meet current legal standards. Sellers are now facing additional work and lengthy processes to rectify these issues, which can delay sales by up to a year. It’s crucial for homeowners to ensure their paperwork is up to date well before they plan to sell.
Lanjaron: Tourist Licences and AFO Regulations
In Lanjaron, 134 properties are available, with an average asking price of €102,500 or €876 per square metre. Notably, while property prices have slightly decreased, the price per square metre has increased, indicating a shift in market dynamics. A key concern in Lanjaron is the regulation surrounding AFO (Asimilado Fuera de Ordenación) properties and tourist licences. A recent BOJA (Official Bulletin of the Andalusian Government) decree has made it more difficult for AFO properties to obtain or maintain tourist licences. This change is likely to affect many property owners, especially those relying on tourist rentals for income, as non-compliance with updated regulations could result in licence revocation.
Orgiva: First Occupation Licences and Market Trends
Orgiva currently has 201 properties for sale, with an average asking price of €200,000 or €1,192 per square metre. The market here is experiencing a shift, with newer, high-quality properties selling quickly, leaving older stock on the market longer. Buyers are increasingly focused on properties within town limits, creating a high demand for homes in residential neighbourhoods. Another issue that has come to the fore is the confusion between the Licencia de Primera Ocupación (First Occupation Licence) and the AFO. Many buyers and sellers are unsure of the differences, leading to complications during transactions, particularly when legalising properties for habitation.
Salobreña and Velez de Benaudalla: Coastal Market Overview
In Salobreña, a popular coastal town, 215 properties are available, with an average asking price of €278,000. Meanwhile, Velez de Benaudalla has 85 properties on the market, with an average asking price of €183,000. Both areas have seen slight fluctuations in property values, but overall, the demand remains steady, particularly from international buyers. Interestingly, there is a growing trend of buyers from northern Europe and Russia moving inland, driven by rising coastal property prices.
Broader Market Trends: Tourism and Golden Visas
Across Granada and the Costa Tropical, demand from international buyers remains robust, particularly from the U.S. and Poland. However, the tightening regulations on tourist licences are causing some buyers to reconsider purchasing properties for rental purposes. This has led to a surge in demand for properties with existing licences, as the risk of losing a licence has become a significant concern.
On a more positive note, the anticipated revocation of Spain’s Golden Visa programme, which caused a rush in property purchases in the €350,000 to €700,000 range, has been delayed. This delay has reignited interest among potential buyers in this price bracket, although the opportunity is expected to be short-lived.
Conclusion
The property market in Granada and the Costa Tropical continues to evolve, influenced by regulatory changes, international buyer trends, and local market conditions. For those looking to buy or sell in the region, staying informed and ensuring all legal paperwork is in order is more important than ever. As always, our team at HolaProperties is here to assist with any queries or concerns.
Feel free to reach out if you have any questions or need further information. We look forward to keeping you updated on the market developments in the coming months.
