House Prices Fell by 4.2% in October Y-o-Y

Posted by on Dec 1, 2014 in News

The price of housing in Spain is continuing to fall, according to the Tinsa General IMIE Index for October. This stood at 1,337 points, representing an annual decline of 4.2% and a return to price levels this indicator showed at the beginning of the summer of 2003. The pace of adjustment remains at 4.2%, as recorded in September, and the decline in the average price of housing in Spain since the maximum values registered stood at 41.4%, a slight improvement over the 41.7% registered in September. The general index has registered year-on-year declines of around 4% for several months, which is less than half of those registered a year ago, when the average price of housing in Spain showed annual declines of 8.5%. The price stabilisation phase began in the summer of 2013. Thus, the general index has only reduced by 3.4% in the first 10 months of 2014, compared to a decline of 8.4% recorded between January and October 2013. The price level in the Capitals and Large Cities registered a year-on-year fall of 2.2% in October, to 1,343 points. This is the best performance among the five areas covered by the statistics. The Metropolitan Areas (towns around big cities) experienced a decline of 3.4% compared with October 2013, and in the Mediterranean coast the annual adjustment was 4.5%. The most significant declines were recorded in the Balearic and Canary Islands, which fell by 5% compared to October 2013, and in the group of Other Municipalities – smaller towns not included in the aforementioned areas – where prices decreased by 7.1% year-on-year. Read...

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Home Sales Rose by 13.7% in September Y-o-Y

Posted by on Dec 1, 2014 in News

Provisional data for September on the transfer of property rights, published this week by the National Statistics Institute, show that home sales in Spain increased by 13.7% in September compared with the same month of 2013, to a total of 27,024 transactions, due to the strong rebound in the number of second-hand property transactions. The Institute’s figures correspond to home sales recorded in the property registers from deeds carried out in previous months. This year-on-year rise puts home sales back into positive territory after the slight decrease of 1.1% recorded in August, when just 23,500 transactions were registered, representing the lowest figure of the year.    Looking at only the monthly data (September over August), home sales increased by 14.9%, the biggest rise in this month of the last five years. The year-on-year rise in home sales in September was due to the 37.3% increase in sales of second-hand homes, which reached 18,068 transactions in the month while, in contrast, sales of new homes fell by 15.5% year-on-year to 8,956 transactions.     The majority of the transactions for home purchases during the ninth month of the year, namely 89.2%, were for private housing, which registered an increase of 13.2% year-on-year to 24,096 transactions, while the number of transactions on social housing amounted to 2,928, registering an increase of 17.7% compared to September 2013. Read...

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Real Estate and Construction Will Boost Spain’s Economic Growth in 2015

Posted by on Dec 1, 2014 in News

According to a report carried out by independent financial advisors, Arcano, entitled ‘The Case for Spain III: Plus Ultra‘, the real estate sector and construction will be the engines of economic growth in Spain in 2015, as well as company and household financing.    The fall in fuel prices could also boost the growth of the economy, along with the depreciation of the euro against the dollar, the European Central Bank’s monetary stimulus and the fiscal policy. The report suggests that this growth could be above the 2% predicted by the Spanish Government. Due to an improvement in financing, granting of mortgages, the return of foreign investors and a recovery in domestic demand, as well as the necessary reactivation in the construction of new homes, the financial body forecasts that by 2015 there will be a resurgence in the residential building sector and the price of housing in Spain.    The report considers that the renewed offer of bank financing is due to the liquidity and solvency of the system having greatly improved since the end of 2013, and notes that the flow of new credit to households and SMEs is positive and is growing, which clearly supports economic growth. Read...

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Permits to Build New Homes Continue to Increase

Posted by on Dec 1, 2014 in News

The number of applications for building permits to construct new homes in Spain rose by 3.3% in the first eight months of 2014, compared to the same period in 2013, reaching a total of 24,696 requests, which is the second consecutive improvement noted following the continuous declines experienced since the beginning of the crisis, according to data from the Ministry of Development. In August alone, a total of 2,063 requests were received for permits to build houses, which represents an increase of 30.1% over the same month in 2013. Maintaining the current rate of applications for permits to build new homes, the year could end with more than 37,000 permits applied for, which is slightly above the total for 2013 (34,288), but still below the figures reached in 2012 (44,162). Around two thirds of the building permit applications were for the construction of housing in blocks, reaching a total of 16,782, and represented an increase of 3.7% over the first eight months of 2013.    The remaining 7,902 authorisations were for the construction of individual family homes, which is a figure 2.3% higher than that recorded between January and August last year (7,721 permits). Read...

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