Building Permits for New Homes Rise for First Time in Seven Years

Posted by on Mar 29, 2015 in News

The number of permits authorised for the construction of new buildings for residential use inSpain totalled 34,873 units in 2014, representing an increase of 1.7% in comparison with the previous year (34,288 units).     According to the latest data from the Ministry of Development, of the total number of permits issued in the year, 23,301 were for apartment blocks (with a year-on-year increase of 2.1%), and 11,550 were for individual family homes, with a year-on-year increase of 1.5%. In addition, El Mundo reported that there were 22 permits requested for other types of buildings not intended for family housing. With these results, building permits in 2014 broke the streak of seven consecutive years in negative figures. This seventh consecutive yearly decline, registered in 2013, marked an all-time low for this indicator of the real estate market, when just 33,869 building licences were authorised. Since the peak figures reached in 2006, in the middle of the real estate boom, when 865,561 building permits were issued, until the end of 2013, the number of licences authorised for the construction of new homes has dropped by 96%. Read...

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Resale Housing Prices Rise by 0.2% in February

Posted by on Mar 29, 2015 in News

 The price of second hand housing in Spain increased by 0.2% during the month of February, compared to the previous month, to stand at 1,595 euros/m2, according to the latest real estate price index fromidealista.com. However, compared with February 2014, when the price of resale housing stood at 1,667 euros/m2, the year-on-year decline is 4.3%. Seven regions registered month-on-month price increases, with the greatest being for Madrid (1.3%), Andalucía(0.9%) and the Canary Islands (0.8%) while, in contrast, the greatest declines were registered for Extremadura (-1%), Asturias (-0.7%) and the Basque Country (-0.5%).    The Basque Country remains the most expensive region, with the price per square metre reaching 2,638 euros, followed by Madrid (2,338 euros) and Catalonia (1,878 euros). The regions with the most affordable prices are Castilla La Mancha (984 euros/m2), Extremadura (1,009 euros) and Murcia (1,074 euros). A total of 23 Spanish provinces registered positive price rates during the month of January. The greatest increases were recorded in Lleida (1.6%), Granada (1.5%), Córdoba (1.4%), Seville (1.4%), Barcelona, Zaragoza and Madrid (all three with 1.3%). In contrast, the biggest decline was recorded in Soria (-2.3%), followed by Castellon (-1.8%) and Cáceres (-1.7%). Read...

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Mortgage Foreclosures in Spain Increased by 7.4% in 2014

Posted by on Mar 16, 2015 in News

  The number of mortgage foreclosures on primary residences in Spain reached a total of 34,680 in 2014, which represents an increase of 7.4% over the figure for 2013, according to the latest Foreclosure Statistics published on Thursday by the Spanish National Statistics Institute.       In the fourth quarter of last year alone, a total of 8,819 foreclosures were registered on primary residences, which is 29.9% more than in the previous quarter, and 2.9% more than those registered in the fourth quarter of 2013. The main objective of this report is to provide, on a quarterly basis, information on the number of foreclosures initiated and recorded in the Property Registers during the quarter of reference. However, the statistical agency points out that not all mortgage foreclosures end with the eviction of their owners. In 2014, a total of 119,442 foreclosures on mortgages were initiated, which is an increase of 9.3% over the number initiated in 2013.  Of this total, 113,916 of the foreclosures were for urban properties (including dwellings), also with an increase of 9.3% over the previous year, and 5,526 were on rural properties (+8.8%). Read More...

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British Nationals largest Buyers of Spanish Homes?

Posted by on Mar 13, 2015 in News

Some 13.01% of all of the home purchases carried out in Spain in 2014 were made by foreigners, more than the figure registered in 2013, when they accounted for 11.15% of all transactions, according to the latest data from the College of Registrars. In fact, this 13.01% figure for transactions carried out by foreigners last year represents a new year-on-year record and accumulates five consecutive years of growth. British buyers were once again the major investors, with 16.72% of all the home purchases made by foreigners, followed by the French, with 10.27%, and the Russians, with 7.47%. Completing the top ten ofidealista.com’s ranking are the German buyers, in fourth place with 7.34% of the housing transactions, followed by the Belgians (6.90%), Swedes (5.97%), Italians (4.73%), Norwegians (3.98%) Chinese (3.67%) and Romanians (2.66%). Kyero.com’s latest enquiry report shows a different mix of nationalities, but still with British buyers in the majority at 51% of all foreign interest in Spanish property. According to the College of Registrars, the strengthening in demand for housing by foreigners demonstrates their great confidence in the Spanish housing market, and that they consider Spain as not only an attractive tourist destination, as it has traditionally been, but also an opportunity, as a result of the attractive price levels of recent years. Read...

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House Prices Set to Rise Due to Booming Demand

Posted by on Mar 13, 2015 in News

The demand for housing in Spain will pick up again in 2015, with an increase in transactions of 15%, which will raise real estate prices by an average of 1.5%, and by up to 5% more in 2016, according to the bi-annual report on the real estate market in Spain prepared by Bankinter. The financial institution states that, given the diversity of the Spanish property market, prices in the majority of the provincial capitals and in the towns away from the large cities will remain stable or could even fall slightly in the coming months, while in the prime zones of the big cities and the most popular tourist areas, prices could register increases in excess of 3% in 2015 and 5% in 2016. Bankinter explains that this improved forecast for the real estate sector is due to the country’s economic recovery – GDP growth of 2.2% estimated for this year – which they feel will lead to a better work environment, an increase in confidence and greater access to funding. However, they warn that they do not foresee the recovery of the sector being either fast enough or significant enough to bring it back to a situation similar to what it was before the crisis, with regard to both transactions and the price increases. The report also considers that unemployment will remain above 20% in the next two years, the financial effort required to purchase a home will remain high due to the fall in available household wealth, the Spanish population will decrease, consequently slowing demand, and that bank-acquired housing will continue to be marketed at greatly discounted prices. Read...

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