Real Estate Investment in Spain increased by 112% in 2013

Posted by on Feb 25, 2014 in News

According to a recent study by BNP Paribas Real Estate, all of the real estate investment market segments in Spain saw recovery last year, with the annual volume in 2013 reaching 3,800 million euros, more than double the figure recorded in 2012 (112% annual growth), and represented the greatest level of real estate investment in Spain since 2010, mainly due to the influx of foreign funds. Three main sources accounted for this increase: the demand for distressed assets arising from repossessions or unresolved debt; sales of residential portfolios held by banks, official organisations and the Sareb; and investors’ perception that asset prices have reached their minimum levels. The study showed that the composition of demand is now international, following years of dominance of the investment landscape by private investors. Most active amongst the European investors are those from the United Kingdom, France and Germany, while activity by North American investors was notable for residential portfolios, and Latin American investors sought prime assets in Madrid and Barcelona. New investors from India and the Middle East also made acquisitions in Spain. Read...

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Malaga Home Sales Up First Time in Seven Years !

Posted by on Feb 24, 2014 in News

Have we finally hit the bottom….the next few months may tell us …..keep watching our ‘News’ page ! 2013 will be remembered in Málaga as the first year to register growth in home sales since 2006, i.e. before the crisis. The latest statistics published by the National Statistics Institute reveal that last year 18,763 sales transactions were recorded in the province. That figure is 941 transactions more than in 2012, and represents an increase of 5.3%. Málaga is thus at the head of the changing trends in the housing market in Spain, as at national and regional levels home sales continued to fall in 2013: by 2.2% in the whole of Spain and 0.36% in Andalusia. The dynamism registered by foreign demand is, according to experts, the factor that differentiates the Costa del Sol. The growth in sales extends to both new homes (with 9,526 transactions registered – 462 more than in 2012) as well as second-hand homes (with 9,237 transactions – 479 more than the previous year). In 2013 Málaga accounted for nearly 30% of all the real estate transactions registered in Andalusia, and at national level it was the fourth province with most home purchases after Madrid, Barcelona and Alicante. The changing trend in 2013 is supported mainly by the growth recorded in the second half of the year, and in December, 1,330 transactions were registered in the province, which is 81 more than in the same month of 2012. Read...

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Fall in House Prices Moderates in January

Posted by on Feb 24, 2014 in News

The average price of a home registered a fall of 7.2% in January year-on-year, according to a report published this week by real estate valuation and appraisal company, Tinsa.    This percentage is two points lower than the decline in prices recorded in December (-9.2%). Since the maximum prices reached in December 2007, before the crisis, house values have now accumulated a decline of 40%. Thus, in the first month of the year, the price of housing has moderated its decline, year-on-year, to almost half of that registered in January 2013, when it fell by 13.8%. Europa Press reported that the metropolitan areas experienced the sharpest declines in January, with the price of their homes declining by 8.5%, year-on-year, followed by the provincial capitals and big cities (-8.4%). With price decreases below the average stood the Balearic and Canary Islands, which registered a decline of 6.9%, the remaining municipalities (-6.3%) and the municipalities of the Mediterranean coast, which closed the month with the lowest decline (-4.8%). According to Tinsa’s data, the price adjustment accumulated since December 2007 has now reached 45.8% on the Mediterranean coast, 43.3% in the capitals and big cities, 43% in metropolitan areas, 34.6% in the rest of the municipalities and 33.8% in the Balearic and Canary Islands. Read...

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Second-Hand House Prices Up 0.2% in January

Posted by on Feb 19, 2014 in News

The average price of second-hand housing registered an increase of 0.2% in January over December, and stood at 1,734 euros per square metre, although year-on-year prices registered a decrease of 8.3%, according to the property website, fotocasa.es. Apart from the isolated increase in house prices experienced in July 2013 (+0.7%), they had not risen since January 2010 (+0.6%). In terms of year-on-year percentage changes, the decline registered in the first month of the year represents a slowdown compared with that noted in January 2013, when housing prices fell by 9.9% year-on-year. According to the data gathered by the portal, the average price of a second-hand home has accumulated a decline of 41.3% since the record high registered in April 2007, of 2,952 euros per square metre. In that regard, El Economista reported that nine regions have registered falls of over 40% since they reached their maximum prices six years ago. La Rioja is the region that has seen prices drop furthest (-52.3%), followed by Navarra (-46.6%), Aragón (-46.5%), Castilla-La Mancha (-46.1%), Murcia (-45.1%), Catalonia (-44.1%), Valencia (-43.5%), Andalusia (-40.8%) and Madrid, where prices have fallen by 40.7% in six years. Read...

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Investment in Commercial Real Estate Grew 39% in 2013

Posted by on Feb 18, 2014 in News

According to a recent report published by Deloitte, investment in non-residential property in Spain reached 2,896 million euros in 2013, representing an increase of 39% over the previous year. The firm cites the improved perception of the country’s risk and the reopening of the credit market as motivation for the upturn. The report notes that the retail segment (shopping centres and commercial premises) remained the most dynamic for non-residential property transactions for another year, accounting for more than half of all the investment (55%) in this type of property. Shopping centres were the focus of investment, registering a total investment of 856 million euros last year, 135% more than in 2012. Investment in commercial premises also grew significantly, and the office segment accounted for 27% of the total investment and was one of the sectors to register the highest number of transactions. Idealista.com reported that, while the logistics and hotel segments reported lower levels of investment in the year, in the first case seven transactions were registered with a total value of 90 million euros (3% of the annual total for non-residential investment), and in the hotel segment 10 transactions worth 420 million euros were registered (15% of the total). Read...

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