Housing Values Fell 3.1% in Q2

Posted by on Jul 27, 2015 in News

The average price of new and used housing in Spain stood at 1,284 euros per square metre in the second quarter of the year, according to the latest data from the Sociedad de Tasación, which represents a decline of 3.1% over the same period in 2014, and a fall of 2.4% compared to the previous quarter. Thus, the average price of housing has accumulated a decline of 46.5% from the maximum values reached in 2007, when it stood at 2,401 euros per square metre.   During the first half of the year, the drop in housing prices is more pronounced in the homes of low quality (-9.1%) than in the homes of average quality (-2.5%), while the high quality housing recorded a decline in values of 1.3%. The real estate confidence index prepared by the appraisal company continues to show an upward trend, rising by more than two points in a quarter, to 49.5 points, placing it very close to the neutral position of 50 points, and continues the progressive growth shown in the index during the last two years, since the minimum registered in the last quarter of 2012. The index is formed from the opinion of more than 600 professionals on economic-real estate aspects of the areas where they carry out their professional activities. Read...

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Price of New Housing Rises 1.8%

Posted by on Jul 27, 2015 in News

The real estate market is continuing to show clear signs of recovery. According to theSociedad de Tasación, the average price of new housing rose by 1.8% in the first half of 2015 – the first increase since 2007 – and by 1.4% in the last year. However, in real terms, prices have registered a decline of 38.7% on average since the maximum values recorded, with prices at the level of May 2002. Thus, the price of new housing in the provincial capitals stands at an average of 2,030 euros per square metre, which equates to 182,700 euros for an apartment of 90 square metres.    The appraisal company stressed that the price increase in the first six months of 2015 (+1.8%) reverses the downward trend observed during 2014, when declines were registered, of 1.8% in the first half of the year, and 0.4% in the second half. Price increases have been registered in 10 of Spain’s 17 regions, the greatest being in Madrid and Catalonia, with increases of 4.2% and 3%, respectively. In contrast, the biggest declines were recorded in the Basque Country (-1.1%), and Aragón and Murcia (both -1%).    Once again the most expensive capitals are San Sebastián (3,291 euros per square metre) and Barcelona (3,255 euros), while the most economical capital is Cáceres, with a price per square metre of 1,116 euros. Read...

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Alpha Real Estate Augurs Return of Young Home Buyers

Posted by on Jul 10, 2015 in News

The Alpha real estate network, which has more than 170 offices throughout Spain and Latin America, recently announced that they are seeing a growing trend in the number of young tenants becoming owners of their own home. Vice President of the company, Jesús Duque, said that: “since last summer, we have been observing that every day there are more young people who have begun searching for a house to buy”. According to Duque, this phenomenon is being noted especially in those who meet the following profile: people who are already living in rented accommodation; with an age ranging between 30 and 38 years; and are employed – preferably couples – with a fixed contract. With regard to the type of properties chosen, it is generally housing costing less than 100,000 euros. According to Alfa’s Vice President: “After nearly seven years of falling prices it is, not only in the long term, but also in the medium term, more economical to buy than to rent”, and the company estimates that before the end of the year, 10% of the current tenants under 38 years of age will be a home owner. This is not a sudden turnaround as, according to Alfa, those people interested in buying their own home generally spend six months of their life performing a comprehensive analysis on their purchasing possibilities. Read more...

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Residential Building Licences Up 29.9%

Posted by on Jul 10, 2015 in News

Housing development activity is showing signs of improvement, according to Spain’s Ministry of Public Works, which announced last week that the number of building permits granted for residential new construction inSpain reached a total of 15,178 at the end of the first four months of 2015, representing an increase of 29.9% compared to the same period of 2014, when a total of 11,680 permits were authorised. Of the total number of licences granted between January and April, some 10,898 were for apartment blocks (with a year-on-year increase of 38.6%) and 4,269 were for individual family homes, with an annual increase of 12%.     In addition, El Mundo reported that permit applications were made for 11 other buildings not intended for family dwellings, which is two more than in 2014. This significant four-monthly increase comes after permits for new builds ended a run of seven consecutive years of negative figures in 2014, rising by 1.7% to a total of 34,873 permits.    This real estate market indicator registered a record low in 2013, of 34,288 permits issued, which represented a decline of 96% since the peak reached in 2006, when a total of 865,561 permits were authorised. Read...

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Home Mortgages Increased by 21.4% in April

Posted by on Jul 10, 2015 in News

The number of mortgages constituted on homes listed in the Property Registers stood at 18,857 in April, which is 21.4% more than in the same month of 2014, according to the latest data from the National Statistics Institute, which pointed out that this data is derived from transactions carried out in previous months. Including the figure for April, the mortgage statistics have now accumulated eleven consecutive months of year-on-year increases. However, month-on-month, compared with March, the number of mortgages dropped by 4.8%. Moreover, the total value of these loans increased by 22% over the previous year, to reach 1,898.5 million euros, although since March the amount has fallen by 6%. The average mortgage value stood at 100,683 euros in April, which is virtually the same as a year earlier, with just a 0.6% increase, and is 1.3% less than in March In total, the new mortgages constituted on all kinds of urban properties were worth 3,322.9 million euros, which is 3.3% less than a year earlier, and more than half of these loans, 52.1%, related to the purchase of homes. Read More...

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