Family Homes on the Coast Most Popular with Foreign Buyers

Posted by on Nov 29, 2013 in News

According to the ‘Report on Foreign Real Estate Demand in Spain’ prepared by Quick Telecom, a company specialising in digital real estate marketing and advertising, for the real estate portal Casaktua, the average housing type acquired by foreign buyers in Spain is a detached property, close to the coast, with 2 bedrooms and 2 bathrooms. Foreign buyers also appreciate the proximity of their potential home to infrastructure, supermarkets, hospitals and other important services. Although it depends on the area, the price most attractive to the foreign buyer is between 65,000 and 250,000 euros – 158,000 euros on average. The luxury homes, with higher prices, are purchased primarily by Russian and Chinese buyers. Read...

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House Prices Fell by 14.7% in September Year-on-Year

Posted by on Nov 26, 2013 in News

Home sales in September fell by 9.2% year-on-year (apartments by 13.1%), despite the fact that, in the same month, housing prices fell by 14.7% compared to September 2012, registering a record low since the start of the crisis of 1,162 euros per square metre, according to the latest statistics published by the General Council of Notaries. The reason they give for this is that the granting of new loans for house purchases fell by 17.4%, to 6,321 transactions, and the average capital loaned by 9.2%, to 102,772 euros. Thus, the percentage of homes purchased with mortgage financing in September was only 30.5%, with the average percentage of the property value financed at 74.9%, the lowest since 2007, indicating that most of the purchases were carried out by those with sufficient solvency to pay in cash. Read...

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Home Values in Spain Have Fallen by 40% in Six Years

Posted by on Nov 25, 2013 in News

In April 2007, after years of a boom in the real estate sector, the price of housing in Spain was worth about 3,000 euros per square metre. However, the outbreak of the economic crisis marked the beginning of a continuous fall in housing prices that, six years later, have now dropped in value by up to 40%. Specifically, the average price of second hand housing in Spain stood at 1,746 euros per square metre in October, according to the latest data from fotocasa.es. “Today the price per square metre in Spain costs on average 1,200 euros less than before the crisis erupted. Housing will continue to lose value during the remainder of the year and for part of 2014, but we are already starting to see signs which indicate that the housing market price adjustments may be bottoming out,” said Beatriz Toribio, head of market research at fotocasa.es. In some regions housing is now worth half of what it was in 2007. This is the case in the region of La Rioja, where the price has fallen most, with a devaluation of 51.3%. The other sharpest declines were registered in Aragón (46.2%), Murcia (45.6%) and Navarra (45.2%). Read...

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Decline in House Prices Moderated to 8.5% in October

Posted by on Nov 20, 2013 in News

According to the Spanish Real Estate Market Index (Imie) prepared by the real estate appraisers, Tinsa, houses in Spain became cheaper by 8.5% year-on-year in October – 7 points less than the September decline, which was 9.2%. In total, the accumulated depreciation of house prices since their maximum reached in December 2007, before the crisis, now amounts to 38.9%. Thus, the price of housing has continued to decline after the elimination, on 1st January, of the tax benefits for purchasing a home, causing a new relapse in housing values. The metropolitan areas of major cities experienced the sharpest cuts in October, with the price of their homes falling by 11.3% year-on-year, followed by the municipalities on the Mediterranean coast, with a drop of 10.5%, and capitals and major cities, where the decline was 9.7%. Read...

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Foreign Buyers Snap Up Homes on the Costa del Sol

Posted by on Nov 16, 2013 in News

Despite the crisis, the desire of foreigners to live on the Costa del Sol has not diminished, but rather the opposite. The President of the Tourist Board and the Council of Malaga, Elijah Bendodo, reported last week that, in the first six months of this year, foreigners bought a total of 3,260 homes in the province of Malaga, which is 33% more than in the same period of 2012 – specifically 812 more, according to the data provided by the General Council of Notaries. ACP President, Jose Prado, said that the sale of homes on the coast to British buyers grew by 18% in the first half of this year, which is a rate not seen for several years, and is six times more than the increase achieved in the same period last year, which reached 3%. Read...

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