Average House Prices Have Fallen by 41.4% Since 2007

Posted by on Apr 26, 2015 in News

Real estate appraisal company, Tinsa, reported earlier this week that average house prices in Spain registered a decline of 2.8% year-on-year in March, compared with a decline of 3.6% registered the previous month, and has now accumulated a decline of 41.4% since the maximum values reached in December 2007, before the start of the crisis. Thus, the price of housing has accumulated a year-on-year fall of 0.4% in the first three months of the year, moderating by two-tenths the decline registered in the same period of 2014, of 0.6%. According to Tinsa, the current price level is similar to that of the summer of 2003.      With reference to the areas analysed by Tinsa, El Economista reported that the biggest year-on-year declines in prices were registered in the Metropolitan Areas (-5.3%) and for the smaller towns that are included in the ‘Other Municipalities’ category (-3.8%). In the Capitals and Large Cities, the price of housing fell by 2.1% in March, year-on-year, while the Balearic and Canary Islands registered a decline of 1.7%. Only the Mediterranean Coast registered an increase in prices in the third month of the year,  with a rise of 0.2% compared to March 2014. Read...

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Foreign Residents’ Real Estate Investment Rose by 26.6% in 2014

Posted by on Apr 26, 2015 in News

Recent data released by the Spanish Ministry of Development revealed that the volume of real estate transactions on private housing carried out by foreign residents in Spain in 2014, amounted to a total of 8,609.5 million euros.   This amount represents an increase of 26.6% over the figure for 2013, which stood at 6,801.9 million euros. Transactions on second hand dwellings accounted for the largest volume of investment in the whole of the year, with 7,675.4 million euros, which is an increase of 31.3% compared with 2013, while the transactions for new housing amounted to 934 million euros, representing a decline of 2.5% compared with the previous year. With regard to the distribution of the housing transactions carried out by foreign residents in Spain last year, El Mundo reported that the region which registered the greatest volume of transactions was Valencia, with 2,052.6 million euros, of which 1,744.5 million euros related to transactions carried out in Alicante, followed byAndalucía, with 1,995.9 million euros, and Catalonia with 1,692.6 million euros. Read...

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Spain Property Sector Still Recovering, Says BBVA

Posted by on Apr 25, 2015 in News

According to the BBVA’s ‘Flash Real Estate Spain’ report for April, the real estate sector in Spain is officially in recovery, and their statistics indicate that the situation is likely to continue, with the buying and selling of houses, construction and the signing of new mortgages continuing to rise, driven by the favourable economic conditions.     The latest figures from the Notaries reveal that in January a total of 21,320 housing transactions were carried out, representing an increase of 2.4% over the month of December 2014, which the BBVA says confirms the growth trend shown over the last few months. The financial institution also pointed out that mortgage activity began to grow again in January, year-on-year, with both the number of new operations and the volume of associated credit increasing, over the same month of 2014, according to the National Statistics Institute’s data.     In addition, the BBVA highlighted that, according to the National Statistics Institute’s House Price Index published in March, relating to the fourth quarter of 2014, housing values increased at a rate of 1.8%, year-on-year. El Mundo reported that, in seasonally adjusted terms, house prices showed increases, quarter-on-quarter, in Andalucía, the Balearic Islands, Cantabria, Castilla y León, Catalonia, Extremadura and Madrid, while in annual average terms, housing prices rose in 2014 in the Balearic Islands, Cantabria, Catalonia, Valencia and Madrid. In Murcia and Andalucía, the prices remained practically stable. Read...

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Spanish Real Estate Sector En Route to a Record Year

Posted by on Apr 25, 2015 in News

In the first three months of the year, real estate transactions with a total value of 2,463 million euros were carried out in Spain, with foreign capital accounting for half of the operations. According to consultants, Cushman & Wakefield, the properties most in demand were commercial in nature, and represented close to 1,500 million euros of investment in a total of 36 transactions. They pointed out that, in just 3 months of the year, these figures represent 35% of the total investment registered in Spain last year, and triple the growth compared with the first quarter of 2014. The cities attracting the greatest investor interest were Madrid and Barcelona, which together accounted for 70% of the capital inflows. Real estate transactions conducted in Madrid amounted to 1,400 million euros, while in Barcelona, the figure stood at around 300 million euros.       Cinco Dias reported that investors’ interest in retail assets registered an increase, and accounted for around 900 million euros of investment in a total of 11 transactions, while sales of offices represented an estimated 450 million euros in transactions, and the volume of investment in industrial properties reached 150 million euros. Read...

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Building Permits for New Homes Grew by 38.9% in January

Posted by on Apr 13, 2015 in News

The number of building licence applications for new housing grew by 38.9% in January, to a total of 3,466 certificates, after ending last year registering the first upturn since 2006, in anticipation of a certain recovery in developer activity, according to data from the Ministry of Development. However, the figures are still far from those reached just prior to the bursting of the housing bubble at the beginning of the crisis when, in January 2007, a total of 59,268 building licences were registered for the construction of new homes in Spain. More than two-thirds of the total number of building permits requested (2,436) relate to houses built in blocks, which is an increase of 51.8% over the previous year.   According to El Economista, the remaining 1,028 authorisations relate to the construction of individual family homes, a figure which is 15.7% higher than that registered for the whole of 2013. Read...

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