Rental Prices Rise for First Time in 19 Months

Posted by on Mar 28, 2014 in News

The average price of rental housing in Spain in February stood at 6.90 euros per square metre per month, after experiencing an increase of 0.5% over the previous month, according to data from the property portal fotocasa.es, analysed by the IESE Business School. This is the first recorded increase after 19 consecutive months of declines. The last rental housing price increase (0.8%) was registered in July 2012. Since prices peaked in May 2007 (10.12 euros/m2 per month) the price of rental housing has accumulated a decline of -31.8%. In fact, eight regions have recorded declines of over -30% since they reached their maximum price levels six years ago. Aragón is the region to register the biggest drop in rental prices (-42.6%), followed by Cantabria (-37.8%), Valencia (-37.2%), Castilla-La Mancha (-33.6%), Catalonia (-32.7%), Murcia (-32.7%), La Rioja (-30.6%) and Andalusia (-30.4%). Regarding the year-on-year variation, calculated from February 2012 to February 2013, the average price of rental housing in Spain has decreased by -4.7%. Six regions registered increases in rental prices in February: Catalonia (0.9%); La Rioja and the Balearic Islands (both up by 0.5%); Aragón (0.3%) and Andalusia and Valencia (both up 0.1%). Meanwhile, in Navarra and Cantabria prices remained unchanged from the previous month. In contrast, nine regions registered price declines in February, with the greatest being recorded in Extremadura, Castilla-La Mancha, the Basque Country and Asturias, where the price of rental housing fell by -0.3%, followed by the Canary Islands, Madrid, Murcia and Galicia, where prices fell by -0.2%. Read...

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Foreigners Bought 55,187 Homes in Spain in 2013

Posted by on Mar 27, 2014 in News

The number of private home purchases made by foreigners during 2013 stood at 55,187, which represents 21.4% of all transactions carried out, according to the General Council of Notaries’ statistics published last Thursday.     The Notaries indicated that the total number of transactions made by foreigners has accelerated significantly compared to previous years, rising by 9.8% year-on-year compared to 2012. In the distribution of transactions carried out by foreigners, those made by non-residents were greatest, with 54%, six points higher than the previous year. The Notaries said that “the behaviour between resident and non-resident foreigners has been mixed.”    While resident foreigners experienced a contraction of 2.3%, non-residents’ transactions increased year-on-year by 22.6%. With regard to the regions, the Notaries pointed out that the non-resident foreigners continue to favour, more than resident foreigners, the coastal areas, where the majority of holiday homes are located. El Economista reported that the region to experience the highest growth in private home purchases by foreigners in 2013 was Valencia, with 16.9%, followed by the Canary Islands (+15.7%), Andalusia (+15.6%), Murcia (+15.2%), Catalonia (+7.7%), La Rioja (+4.5%), the Balearic Islands (+3.1%) and Asturias (+0.6%). Read...

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Spain – Second Destination Worldwide for Real Estate Investment Funds

Posted by on Mar 25, 2014 in News

According to a recent real estate investment study carried out by KPMG, based on the opinions of around fifty investment fund heads surveyed who invest in the European market, Spain is the second country with the best real estate investment opportunities for these funds. 71% of the respondents viewed Germany as the principal destination most interesting for investment, followed by Spain (45%), the United Kingdom (42%) and France (29%), with offices and shopping centres being the properties most in demand. In the opinion of the investors surveyed, Spain thus joins the group of the most important countries in Europe. Javier López Torres, partner in charge of real estate for KPMG in Spain, said: “the greater economic stability, the improved access to financing, and the capital market development, have created the optimal conditions for investors to regain confidence in the real estate sector and to make decisions to ensure returns”. And, director of real estate corporate finance for KPMG in Spain, Borja Goday, said: “it is the ideal time for investors to diversify their portfolios with real estate assets and reduce their exposure to traditional portfolios which include only stocks and bonds”. Among the conclusions drawn from the report include: – investors are optimistic about increasing their exposure to real estate assets and 81% showed interest in doing so. This trend will be supported by the increase in economic stability and access to finance, driven by the improvement in the capital market. As proof of this, 90% of those questioned agreed that the most important European markets will continue to be the focus of investment in the next five years. – investors are now more willing to take full advantage of undervalued or distressed assets, as confidence in the global economy is restored. 42% of the survey’s participants are focusing on opportunistic strategies as the best opportunity for investing, compared with 32% who said the same thing last year. Read...

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Home Sale Fluctuations in January

Posted by on Mar 25, 2014 in News

The National Institute of Statistics reported last week that although home sales fell by 23.2% in January compared to the same month in 2013, to a total of 30,659 transactions, it was still the the highest figure since February 2013, when 35,500 transactions were carried out. These figures relate to completions that would have actually taken place in the final months of 2013 and 2012, rather than new sales for 2014 – and hence contrast to earlier reports from Spain’s Notary offices that home sales have started to increase this year.    The year-on-year decline in home sales was due mainly to the decline in the sale of new homes, which fell by 27.5%, to a total of 14,527 transactions, while sales of previously owned homes fell by 18.9% to 16,132 transactions – in both cases the highest number of transactions since February 2013. In January, the highest number of home sales per 100,000 inhabitants was registered in Valencia (111). The region of Andalusia continued in the lead for home sales in the first month of the year, with 5,710 transactions, followed by Madrid (5,241), Catalonia (4,576) and Valencia (4,525), while the regions with fewest home sales in January were La Rioja (205), Cantabria (369) and Asturias (444). Read...

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Spain Ranked Third Best EU Country for Property Investment

Posted by on Mar 18, 2014 in News

According to a study carried out by property consultants, CB Richard Ellis, Spain ranks as the third most attractive country in Europe for investment in real estate, just behind the United Kingdom and Germany.    Almost a fifth (19%) of European investors say they are interested in Spanish properties, compared to a rate of less than 5% just a year ago. Similarly, the report entitled ‘European Real Estate Investor Intention 2014′, prepared from the opinions collected from 400 European investors, ranks Madrid as the second favourite European city in which to invest in real estate assets, compared with the ninth position the capital occupied the previous year.    In addition, the study places Barcelona in the ‘top ten’ of cities for European investors for the first time, while other capitals like Paris or Warsaw dropped down the list. CB Richard Ellis’ analysis reveals that, overall, Europe “seems to have regained the favour of investors” which, in their opinion, is demonstrated by the fact that 70% of them chose Western Europe as “the world’s most attractive region for real estate investment”.      The report also notes an “increase in investor appetite”. In fact, it indicates that 67% of the European investors consulted expect that their activity in real estate will be greater this year. Read...

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