Home Sales Rose in 2014 Following Three Years of Declines

Posted by on Feb 25, 2015 in News

The Spanish National Statistics Institute reported on Tuesday that the sale of homes in Spain increased by 2.2% in 2014, compared with the previous year, reaching a total of 319,389 transactions, and thus returned to positive figures after registering three years of declines. The second hand homes market has been the driving force behind this year-on-year growth, the first registered since 2010, when home sales recorded an increase of just over 6%. That year was a slight reprieve for the real estate market, which has been very badly affected by the economic recession. During the crisis period, the worst years for housing transactions were 2009 and 2008, when the volume of these operations plummeted by -25.1% and -28.8%, respectively. In 2012 and 2011, home sales transactions still recorded double-digit declines, of -11.5% and -18.1%, respectively, while in 2013 the drop in transactions moderated to -1.9% as a result of the abolishment of the tax benefits for the purchase of housing. After three years of registering declines, Europa Press reported that the home sales transaction figures are now returning to positive ground in a context of strong price adjustments. In fact, since their maximum values reached in 2007, the price of housing in Spain has fallen by over 40% Read...

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Four steps to safely buying property in Spain

Posted by on Feb 25, 2015 in News

Does the current strength of sterling coinciding with the bottom of the Spanish property market make it an ideal time to buy property in Spain for British buyers?  Yes and No.  Kyero.com speaks to Share Radio in London. First, whatever the exchange rate, it’s important to remember thatinvesting in property in Spain is a long term commitment.  Withbuying costs of approximately 10%, selling costs the same again, plus capital gains tax of 18%, a property needs to increase in value by 25% to enable the buyer just to break-even.     Will property values increase by 5% pa over the next 5, 10, or 15 years?  Your guess is as good as mine, but buying with the long term in mind is essential. Second, accept that there is no house price transparency in Spain.  There is no equivalent of the UK land registry data.  Of course, the Spanish government has the data – they just don’t publish it. Three separate government agencies publish snapshots of the property market (National Institute of Statistics, The Development Agency, The Association of Notaries) – but they are summaries at best, and incomplete at worst. Read...

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Volume of Global Real Estate Investment Returns to Pre-Crisis Levels

Posted by on Feb 10, 2015 in News

  According to a recent report prepared by professional real estate services and investment consultants, JLL, direct investment in real estate assets worldwide exceeded 623,000 million euros in 2014, returning to the levels of 2006, before the crisis, and is expected to increase by a further 5% to 10% in 2015 thanks to the present buoyant economic situation. The study analysed the 30 cities around the world which concentrated 50% of the five billion euros of direct investment in tertiary real estate over the last decade. The report noted that this investment is particularly significant in the cities of London, New York, Paris and Tokyo, where one in every five dollars of investment is in tertiary real estate, representing 19% of the total volume of investment worldwide. Colin Dyer, Managing Director of JLL, says that they are “optimistic about the positive impact of investments in cities through the improvement of financial practices that have been implemented, and expect the investments to continue to grow”. He expects direct real estate investment to reach a billion euros by 2020, driven by greater use of equity, the emergence of new sources of capital, lower interest rates and an increase in Asian investment. Read...

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Spain’s Economic Confidence at Highest Level Since March 2007

Posted by on Feb 4, 2015 in News

As reflected in the latest economic indicator produced by the European Commission, the economic confidence of Spain in January is standing at its highest level since March 2007, and reached 106.6 points, against 105.6 points registered in the previous month, thanks to improvements experienced among consumers, industry and the retail trade. In particular, the consumer confidence improved to -1.5 from -7.1 in December, while in the retail sector it rose to 10.5 from 10, and in industry it climbed to -4.5 from -5.8 in December.     In contrast, El Economista reported that the confidence in the construction sector worsened in January to -25.8 from -25.1 the previous month, while in the services sector it fell to 16.4 from 20.7. Among the major economies of the eurozone, the remarkable improvement in Spain’s economic confidence, which has accumulated four consecutive months of increases, was only echoed in January in Italy (+2.6 points) and Germany (+0.4 points), while in France it fell by -0.4 points, and in the Netherlands by -1.2 points.       In the whole of the eurozone, the economic confidence stood at 101.2 points in January, compared with 100.6 in December, its best reading since July 2014, while the indicator corresponding to the whole of the European Union (EU) improved to 104.6 points, compared to 104.1 points the previous month. Read...

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House Prices Rose by 1.3% at the end of 2014

Posted by on Feb 4, 2015 in News

According to the latest Real Estate Trends report produced by the ST Sociedad de Tasación, the average value of homes in Spain (new and used) increased by 1.3% in the fourth quarter of 2014, bringing the price per square metre to 1,326 euros. The recent data indicates that prices have now bottomed out, although the new build prices are still likely to fall further, and that the tendency is towards stabilisation, and thus no sharp increases are predicted. The managing director of the company, Juan Fernández-Aceytuno, said that there is still a greater demand for second hand properties compared with that for new homes. This is the second consecutive house price increase after that registered in the third quarter of 2014, of 4.1%, ending the run of price declines which have been ongoing since 2007. Before the second half of 2014 the last rise in house prices registered was in the third quarter of 2007, when they rose by 2.4%, increasing the cost per square metre from 2,344.84 euros to the record high of 2,401 euros per square metre. Since those maximum values, prices have accumulated a decline of 44.8%.      Fernández-Aceytuno noted that 2014 may have been the “turning point” in the real estate sector, and that, looking forward to 2015, the supply of new housing will continue to be significant. Read...

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