Number of New Homes Completed in Q3 Fell by 1.3%

Posted by on Dec 31, 2015 in News

Recent data from the Spanish Government’s Ministry of Public Works indicated that the construction of some 33,698 homes were completed in Spainbetween January and September 2015, which represents a decline of 1.3% compared to last year, when a total of 34,128 homes were completed in the same period. Of the total number of homes completed up to the end of the third quarter, 99.1% (33,394) related to private developer projects and 0.9% (304) to public administrations works. Compared to a year earlier, the construction of homes by private developers fell by 1.2%, while public administrations projects registered a decline of 9.8%. Among the homes promoted by private developers, El Mundo reported that some 19,340 of them related to corporations (representing a year-on-year increase of 6.3%); 11,420 were for individuals and communities of owners (+3.4%), and 1,327 related to cooperatives (-53.7%). In addition, there were 1,307 completion certificates for other types of private developer projects. Moreover, the Ministry revealed that the liquidation value for the material execution of the works fell by 5% in the first nine months of the year, to 4,610.1 million...

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AHE Forecasts an Upturn in the Spanish Mortgage Market in 2016

Posted by on Dec 31, 2015 in News

In their December report on 2015 and forecasts for  next year, the Spanish Mortgage Association (AHE) indicates that they expect a “clearer” reactivation of the Spanish mortgage market in 2016 in line with the overall improvement in lending activity, while at the same time they warn that the recovery will depend on the consolidation of national economic growth. El Mundo reported that the Association believes that the continued improvement in the employment situation in Spain will bring about a “gradual recovery” in the financing capacity of Spanish households, resulting in the reduction of non-payment of loans and boosting solvency and future borrowing capacity. In a climate of historically low interest rates and inflation, which is expected to close the year with negative rates, the Association points out that the banking system is now healthy “in terms of solvency and liquidity”, and they believe that over the next two years Spain’s real estate sector will “gradually” recover part of the role lost in the years of the crisis “from a prudent perspective, focused on proper risk management”. The report reveals that the rate of decline in lending activity was contained during 2015, noting that: “despite lending to the residential private sector to October 2015 registering a negative year-on-year variation of around 1%, its evolution suggests a clear move towards positive rates in 2016, following at least five years of negative year-on-year rates”. Read...

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Posted by on Dec 31, 2015 in News

Data from a survey carried out by the organisers of the “Sima Otoño” real estate fair, held in the IFEMA Feria de Madrid at the end of October, have revealed a number of positive factors with regard to the real estate market in Spain.  The event received a very positive evaluation overall, from the exhibitors at the fair as well as from the organisers, which was confirmed by the responses to the survey, which showed that expectations and commitment to purchasing a home have undergone some changes since the last edition of this event was held back in May. One factor pointing to a clear recovery in demand is that buyers are taking less time when making the decision to buy a home, and the percentage of visitors who indicated they would buy a home “as soon as they found one” increased by 13% over the figures from the survey carried out at the Sima fair in May. Another significant fact is that more than half of the respondents stated they had started actively searching within the last six months. According to the data, gathered from questioning visitors to the fair and also an online survey, the profile of the buyer has changed, as well as the type of housing they are looking for. The dominant profile during the housing boom and the early years of the crisis, was of a young buyer wishing to become independent or set up home with their partner, while the typical buyer now is older, with children, and economically more comfortable. The majority of those surveyed (36.1%), said their aim is to “improve their current housing”, which is an increase of 7% over those questioned in May, and six percentage points above those who are looking to “change from renting to owning” (30.5%). In the segment of potential buyers aged between 36 and 45 years old, improving their current housing is the plan for 58.3%. Read...

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Spanish House Prices Rose by 1.9% Y-o-Y in November

Posted by on Dec 9, 2015 in News

The average price of housing in Spain registered an increase of 1.9% in November, compared with the same period in 2014, according to the latest IMIE General and Large Markets Indexpublished by property appraisal company, Tinsa. This positive evolution is influenced by an atypical decline in the average price recorded in November 2014 which was subsequently corrected. This has intensified the year-on-year comparison, although the average price has maintained and even decreased slightly in November compared with the previous month, consistent with the stabilisation process. Tinsa’s IMIE Index is based on the appraisals of finished housing (new and used) carried out by the company, and calculated using the collated monthly variations in the value per square metre of housing, compared to their 2001 values. According to the categories analysed by the appraisal company, the “Capitals and Major Cities” registered the greatest year-on-year increase in November, of 3%, followed by the “Metropolitan Areas” and the “Mediterranean Coast”, which both registered an increase of 1.4%. The smaller towns, grouped in the “Other Municipalities” category, recorded a rise of 1.3% in their average house prices compared to a year earlier, while the “Balearic and Canary Islands” remained stable with a slight increase of just 0.2% compared to November 2014. Read...

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Spanish House Prices Register Largest Increase Since 2008

Posted by on Dec 9, 2015 in News

The average price of housing in Spain increased by 1.4% in the third quarter of the year, compared to the same period of 2014, which according to theMinistry of Public Works data is the greatest year-on-year increase since the middle of 2008, and is also the second consecutive quarterly increase registered. This latest increase follows the 1.2% rise recorded between April and June, which was the first price increase registered in a quarter since the crisis began in 2008 and which up until then had accumulated 26 consecutive quarters of declines.    Since the maximum values recorded in the first quarter of 2008, the average price per square metre of housing has declined by 29.8%. Following the latest upturn, the average price per square metre of free housing stands at 1,476 euros, which is 0.1% less than in the previous quarter. With regard to the age of housing, El Mundo reported that in the third quarter of 2015 the average value per square metre of housing up to five years old (considered as new) stood at 1,741.9 euros, which is 1.6% more than in the same period of 2014, while the price per square metre for second hand housing (over 5 years old) stood at 1,465.9 euros, representing a decline of 0.1%. Price increases were registered in 12 regions, lead by Madrid, with an increase of 3.5%; followed by the Balearic Islands (+3.2%); Aragón (+3.1%); La Rioja (+2.9%); the Canary Islands (+2.4%); Navarra and Valencia (both +2.1%), while six regions continued to register declines, lead by Asturias (-3.6%) and the Basque Country (-1.4%). Read...

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