Madrid and Barcelona Among Top European Cities for Real Estate Investment

Posted by on Feb 22, 2016 in News

The recent report on “Emerging Trends in Real Estate Europe 2016” prepared by PwC and the Urban Land Institute, forecasts good real estate prospects for the larger cities in Spain, especially for Madrid and Barcelona. Madrid remains ranked in fourth position among the most attractive European cities, after Berlin, Hamburg and Dublin, with 5,000 million euros in real estate investment between October 2014 and September 2015.   Barcelona rose one position to 12th place, and is part of a group of 18 cities with optimistic prospects for investment in 2016. In the European framework, the report predicts that the lack of quality assets and the abundance of capital will boost real estate development and investment in alternative sectors to the traditional ones, according to 80% of those surveyed. El Mundo reported that 55% of those questioned said they believe that capital will continue entering strongly into the market this year, thanks to low interest rates in Europe and the consequent greater appeal of real estate investment compared with the low return on fixed income securities.    However, quality assets will continue to be scarce, according to another 40% of the respondents, while 63% believe that those available will be overvalued in virtually all the European markets. Read...

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Spain House Prices Rose by 6.6% in 2015

Posted by on Feb 22, 2016 in News

During 2015, the average price ofhousing in Spain increased by 6.6%, according to the latest real estate registry statistics released by the Property Registrars, which is the same rate of increase the prices registered in the third quarter of last year. In addition, the number of home sales increased by 11.2%, compared to 2014, to a total of 354,538 transactions. Quarter-on-quarter, the average price of housing rose by 0.9% in the fourth quarter of 2015, over the third quarter of the year, thus further moderating the accumulated decline in prices since the peak levels of 2007, to 28.4%. With regard to the volume of housing sales registered in the property registers in the fourth quarter of 2015, these reached a total of 84,031 transactions, representing an increase of 7.9% over the same quarter of 2014, while compared to the previous quarter, the number of transactions fell by 9.4%, showing the traditional seasonal decline in transactions usually recorded in the last quarter of the year. Again, the distinction between new and second hand housing explained the evolution of the home sales, with transactions on second hand housing registering an increase of 39.7% year-on-year, while those on new housing fell by 36.9%. Moreover, El Mundo reported that foreign demand for housing in Spain accounted for 14.4% of the total sales in the fourth quarter of 2015, with over 12,000 transactions and a year-on-year increase of 13.2%, while during the whole of 2015 the number of transactions exceeded 46,000. Read...

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Building Permits for Housing Continue to Grow

Posted by on Feb 10, 2016 in News

According to the latest data published by the Spanish Ministry of Public Works, between January and November of 2015, the number of permits authorised for new construction for residential use in Spain amounted to a total of 44,577, which represents an increase of 35% compared with the same period of the previous year, when a total of 33,007 permits were authorised. Of the total number of permits issued during this 11 month period, some 31,082 were for apartments in blocks, registering a year-on-year rise of 39.5%, and 13,477 of the permits related to individual family homes, with a year-on-year increase of 25.9%. Moreover, there were also 18 permit applications for other types of buildings not intended for family dwellings, which is three less than the figure recorded in the same period of the previous year. Read...

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Rental Housing Prices Rose by an Average of 3.3% in 2015

Posted by on Feb 10, 2016 in News

The price of rental housing in Spain closed 2015 with an average increase of 3.3%, according to data from property portal idealista.com, which placed the price per square metre at 7.1 euros per month. Barcelona is the provincial capital where rents increased most during 2015 and is the only city to return to pre housing bubble price levels. With an increase of 23% on rental housing prices, the price per square metre in Barcelona now stands at 15.3 euros per month. Barcelona is thus ranked as the most expensive Spanish capital (15.3 euros/m2), followed by Madrid (12.4 euros/m2) and San Sebastián (11.6 euros/m2). In contrast, the portal’s data shows that the most affordable capitals for rental housing are Lugo(3.9 euros/m2) and Ourense (4.1 euros/m2).    El Economista reported that significant increases in rental prices were also registered in Tarragona (+14.1%) and Málaga (+13.5%), while the greatest reductions in home rents were recorded in Jaén (-7.9%), Lugo (-5.6%) and León (-5.5%). By region, the greatest increase was recorded in Catalonia, where rents increased by 13.3% over the previous year, followed by the Balearic Islands (+10.3%) and Madrid (+7.6%). In contrast, the greatest rental reductions were registered in Galicia (-3.7%), Extremadura (-3.4%) and Asturias (-2.2%). Madrid remains the most expensive region, with average rental prices standing at 10.9 euros/m2, followed by Catalonia (10.5 euros/m2), the Basque Country (10 euros/m2) and the Balearic Islands (9 euros/m2). Extremadura is the region with the most affordable rental housing, at 4.1 euros/m2, followed by Castilla-La Mancha(4.4 euros/m2) and La Rioja (4.8 euros/m2). Read...

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Spain Resale House Prices Register Smallest Decline Since 2007

Posted by on Feb 10, 2016 in News

The average price of second hand homes in Spain fell by -0.8% in 2015, according to data from the “Housing in 2015” report prepared by property portal fotocasa, which placed its value at 1,619 euros/m2 compared with the figure of 1,632 euros/m2 recorded at the end of 2014.    This year-on-year decline of -0.8% registered in 2015 is almost five points lower than the decline registered at the end of 2014 (-5.7%) and is the most minor decline recorded since 2007, when the variation was -1.1%. According to Beatriz Toribio, head of research for the portal, their data shows that the price of housing in Spain is stabilising. She said that in 2015 the double digit declines registered in recent years were left behind, and that prices have begun to climb continuously in certain areas “because after losing up to 45.2% of its value, the falling cost of housing has coincided with a re-opening of mortgage credit, which was essential in order for the sector to breathe again. As a result, we ended 2015 with more optimistic forecasts for the sector”. The price of housing in Spain has accumulated a decline of -45.2%, on average, since it reached its historical peak in April 2007 with a value of 2,952 euros/m2. The regions which have registered even greater accumulated declines since their maximum levels are: La Rioja (-55.1%); Castilla-La Mancha (-52.6%); Navarra (-52,5%); Aragón (-52%); Murcia (-49.9%) and Valencia (-48.3%). In contrast, the regions which recorded the lowest accumulated declines in their housing prices are: Galicia (-31.5%); the Balearic Islands (-33.1%); Castilla y León (-36.3%) and the Basque Country (-37.3%). Read...

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