Spain House Price Declines Moderate

Posted by on Jul 30, 2014 in News

In a news release last week, the EU statistical agency, Eurostat, reported that the price of Spanish homes, as measured by the House Price Index (HPI), dropped by just 1.6% in the first quarter of 2014 year-on-year and by just 0.3% quarter-on-quarter – very moderate percentages which show the change in trend that seems to be approaching the national real estate market. Nevertheless, these price adjustments are still above those recorded globally. In the first quarter of 2014, compared with the same period of 2013, house prices in the eurozone fell by 0.3%, and in the whole of the European Union (EU) they increased by 1.0%. Between January and March, compared to the last quarter of 2013, prices fell by 0.3% in the eurozone and rose by 0.2% in the whole of the EU. Ahead of Spain, with the biggest annual reductions in house prices in the first quarter of 2014, were Croatia (-9.7%), Slovenia (-6.6%) and Cyprus (-5.7%). Spain has occupied first place on this list almost continuously and solo since these statistics began in 2012. In contrast, the most pronounced increases in house prices in the first quarter were recorded in Estonia (+17.5%), Latvia (+10.4%) and the United Kingdom (+8%). With regard to the quarter-on-quarter variations, the largest price declines were registered in Croatia (-2.7%), Luxembourg (-2.3%) and Slovenia (-1.7%), while showing the largest increases were Estonia (+4.8%), Sweden (+2.4%) and the United Kingdom (+2.2%). In Spain, prices fell just 0.3% quarter-on-quarter. Read...

Read More »

Price of Housing Up 4.5% Quarter-on-Quarter

Posted by on Jul 22, 2014 in News

The Spanish real estate market is continuing to recover from the crisis and now appears to be on the right path. The average price overall of new and used housing stood at 1,328 euros per square metre at the end of the second quarter of 2014, representing an increase of 4.5% over the previous quarter, when the price of housing stood at 1,270 euros per square metre, according to the Sociedad de Tasación’s quarterly report. Despite this increase, the average price has accumulated a 44.7% decline since the peak value reached in 2007, when it stood at 2,401 euros per square metre. Year-on-year, the average price of new and used homes fell by 2.3% in the second quarter, although this drop is well below the 15% decline registered at the end of June 2013. Breaking down the data, as previously reported, the price of new housing fell by 4.8% in one year and by 1.8% in the first six months of 2014, representing a fall of 40% in real terms since the maximum value, bringing prices back to stand at March 2002 levels. Thus, the price of an average new home in the provincial capitals stands at 2,002 euros per square metre. Read...

Read More »

New Housing Prices at 2002 Levels

Posted by on Jul 22, 2014 in News

According to a report on the first half of 2014 published this week by the Sociedad de Tasación, the price of new housing in Spain fell by 4.8% last year, bringing the accumulated decline in market prices to 40% below their maximum values, i.e. to March 2002 levels. In the provincial capitals, the price of private housing of an average type stands at 2,002 euros per square metre built, placing the average price of a 90 square metre home at 180,180 euros. Compared to the previous six months, the decrease was 1.8%, less than the declines recorded in the first half and second half of 2013, of 5% and 3%, respectively. The year-on-year price decline has also moderated which, a year ago, fell at a rate of 8%. The Sociedad de Tasación collects data on all the provincial capitals and major towns of over 25,000 inhabitants, and has conducted a direct survey in over 45,700 homes of different types corresponding to 3,100 different real estate developments. In the last year, house prices fell in all regions, with the most pronounced being in Aragon (-8.7%), Valencia (-7.3%), La Rioja (-7.1%) and Castilla-La Mancha (-6.3%). In contrast, the slightest reductions were recorded in Navarra (-1.9%), the Balearic Islands (-2.7%) and Asturias and Galicia (-3.2%), while in Madrid and Catalonia, the adjustment was -4.8% and -4%, respectively. Read...

Read More »

Tinsa Sees Signs of Recovery in Coastal Real Estate Market

Posted by on Jul 11, 2014 in News

The report ‘Spanish Coast 2014′, prepared by the real estate appraisal company Tinsa, which analyses the current state of housing on the Spanish coast paying particular attention to residential tourism, shows that the property prices on the Mediterranean coast have accumulated an adjustment of 47.7% since their maximum values reached in 2007, compared to the overall average adjustment of 40%. In contrast, the Canary Islands, is the region that has best weathered the housing crisis. The study finds that prices continued to stabilise in the first quarter of 2014, compared to the same period of 2013, yet the appraisal company reflects that sales are still weak and are being maintained primarily by foreign demand. According to the report, there are areas that have begun to show the first clear signs of stabilisation in the first quarter compared with the values of 2013, such as in Málaga, the east coast and the Catalan coast. In this sense, the lowest annual price declines were registered in A Coruña (-0.9%), Malaga (-1.1%), Mallorca (-3.4%), Almeria (-3.8%) and Ibiza and Formentera (-3.8%). At the other end, the highest annual price reductions on coastal properties were recorded in Lugo (-15.1%), Fuerteventura (-11.9%), Valencia (-11.8%), Huelva (-11.4%) and Castellón (-11.2%). Read...

Read More »

Foreigners Bought 19.4% of Homes Sold in Spain in Q1

Posted by on Jul 11, 2014 in News

According to the Notaries’ Statistical Information Centre, in the first quarter of this year, foreigners bought 15,402 homes in Spain, which is an increase of 27.2% over the same period last year, and represents 19.4% of all the properties sold in those months.    With these figures, the notaries certify that foreign buyers “constitute one of the main engines of growth in housing sales”. In the distribution of the transactions carried out by foreigners, those made by non-residents outweighed those made by residents, accounting for 52.8% of the total after an increase, year-on-year, of 18.5%. However, the purchase of homes by resident foreigners experienced a greater increase, of 38.9% year-on-year.     “The greater number of transactions carried out by foreign residents may be explained, in part, by the normalisation of transactions following the end of the tax deductions for home purchase at the end of 2012,” added the notaries. The notary statistics also reflects that not only are foreigners buying more housing in 2014, but that the prices are 1.3% higher, up to 1,588 euros per square metre.     The notaries stated: “In principle, the evolution of the price per square metre seems to point to a stabilisation in the price adjustments observed so far.” Read...

Read More »