Spain – European Country with Biggest Increase in Construction

Posted by on Jan 29, 2015 in News

  Spain registered a 15.9% increase in production in the construction sector in November, over the same month of 2014, the largest increase recorded in the whole of the European Union (EU), according to the EU Statistical Office, Eurostat, and is even higher than the percentage registered in October (+13.9%). The EU registered a year-on-year increase of 2.5%, while in the eurozone the increase was 2.2%. With this 15.9% increase, Spain stood ahead of Sweden (+12.5%) and Hungary (+8.8%), while the countries to register the steepest declines over the same month of the previous year were Slovenia (-11.2%), Italy (-7.9%), Portugal (-5.7%) and Slovakia (-5.1%).     Month-on-month (November over October), Spain recorded an increase in the construction sector, of 2.2%, along with Romania, where the increase was 5.8%, and Poland, which rose by 2.5%, in contrast to the declines of 0.1% registered in the eurozone countries and of 0.2% in the EU. El Mundo reported that the decline in the eurozone is due to the drop of 0.2% in construction and the drop of 0.1% in civil engineering, while the EU decline was due to the 0.2% drop in construction, despite the rise of 0.1% in civil engineering. The countries with the most pronounced declines in November, over the previous month, were Italy (-4.5%), the United Kingdom (-2%) and the Czech Republic (-1.9%). Read More...

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House Prices Dropped by an Average of 3% in 2014

Posted by on Jan 29, 2015 in News

The price of new and second hand housing accumulated an average decline of 3% in 2014, according to the General IMIE and Major Markets Indices for December published on Tuesday by property appraisal company, Tinsa, which represents a more moderate decline than the 9.2% registered in 2013.   Thus, according to these indices, in December 2014, housing prices in Spain stood at the same levels as recorded in July 2003, accumulating a decline of 41.2% since their maximum values registered in 2007, at the height of the real estate sector boom. According to Tinsa, average house prices are stabilising at around the values recorded in the summer of 2003, following seven years of crisis, and how they evolve in 2015 will depend on both the economy and employment, the two factors that determine demand. In this respect, if the growth forecasts are met, the labour market stabilises and the granting of mortgage loans improves, then the average price of housing in Spain could achieve a year-on-year rate of adjustment of around 0% in the early part of this year. However, El Economista reported that, due to the diversity of the market, the signs of recovery in the consolidated areas of large cities and in the coastal areas will contrast with the adjustments which will continue to be registered in the areas where there is still a significant excess of real estate stock.   In the accumulated variation for 2014, the price of housing in the Metropolitan Areas fell by 0.2% in December, compared with the decline of 11.5% registered in 2013. Read...

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Home Mortgages Rose by 14% in November

Posted by on Jan 29, 2015 in News

The number of new mortgages constituted on homes listed in the property records reached a total of 15,900 in November, which is 14.2% more than in the same month of 2013, according to data published by the National Statistics Institute this week, relating to public deeds carried out in previous months.   November’s year-on-year rise is the sixth consecutive month of double digit increases in home mortgages, following the increases of almost 19% in June, 28.8% in July, 24% in August, 29% in September and 18% in October. The average value of the home mortgages constituted in November reached 104,817 euros, representing a 1.7% decline over the same month of 2013, while the capital loaned for these home mortgages increased by 12.2% year-on-year, to 1,666 million euros.    Month-on-month (November over October 2014), the number of mortgages on homes fell by 10.1%, the greatest decline in this month since 2010, while the capital loaned fell by 5.6% month-on-month, also registering its most pronounced decline in the past five years. El Economista reported that, in the period from January to November, the number of home mortgages fell by 0.2% compared to the same period in 2013, whereas the capital loaned rose by 1.8% and the average mortgage value increased by 2%.    The regions which recorded the greatest number of mortgages constituted on housing in November were Andalucía (3,183), Madrid (2,565), Catalonia (2,264) andValencia (1,743). Read...

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2015 – Year of Change for Housing Sector

Posted by on Jan 21, 2015 in News

According to various real estate experts and analysts, 2015 will be a good year for the real estate sector in Spain, especially the housing market. The predicted renewed demand for housing will be due to the stabilisation of prices, improved access to affordable financing and an increase in the supply of new builds. The President of the Foundation of Real Estate Studies (FEI), Julio Gil, said: “Throughout 2015 we will again see a market of different speeds. On the one hand, there will be areas where prices will stabilise and, on the other, areas where the adjustments will continue but in a more moderate way.” However, Gil also stressed other negative factors that remain, such as the housing stock surplus and the weak purchasing power of households. Gonzalo Bernardos, Economist and Director of the University of Barcelona’s Máster Real Estate, pointed out that the increase in transactions will not be consistent throughout the country, and highlighted that the consolidated areas of large cities such as Madrid and Barcelona, will see the greatest increases in buyer activity. Bernardos predicted that price increases in these areas could rise to above 10% and said that “these high price increases will contrast with the general stagnation being registered in the medium-sized cities and provincial capitals”. Read...

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Spanish Housing Prices Have Already Bottomed Out, Says IMF

Posted by on Jan 21, 2015 in News

According to the conclusions contained in the January Multi-Country Report published by the International Monetary Fund (IMF), housing prices appear to have bottomed out in Denmark, Ireland, the Netherlands and Spain. The report noted that “the metrics suggest that housing prices inSpain, Ireland, Denmark and the Netherlands have come to or may be near their lowest point”. The report, which looks at the condition of the real estate market in these countries, where housing has undergone a significant devaluation in recent years, highlights that the four countries included in the analysis all share a similar institutional environment (a common monetary policy and the EU’s institutional framework). The IMF stressed that the price collapse has been more pronounced in Spain and Ireland, and at the same time reiterated that these two countries also suffered higher rates of unemployment, brought about by the strong decline in the construction sector. They said that “Ireland and Spain were hit harder because, having built more during the boom years, the price decline has been accompanied by a rise in unemployment and a halt in construction activity”. Read...

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