Home Sales Grew by 22.9% in February, Say Notaries

Posted by on Apr 25, 2016 in News

The Spanish housing market is continuing to gradually recover, according to the latest real estate statistics published on Friday by the General Council of Notaries. In February, housing transactions increased by 22.9% year-on-year, to a total of 34,268 transactions, while average house prices registered a minimal increase of 0.6%, to stand at 1,233 euros per square metre. The year-on-year increase in home sales is mainly as a result of the growth registered in sales of second hand apartments, which increased by 25.9%, to a total of 23,227 transactions while, in contrast, sales of new homes recorded a decline of 5.1%, to 2,340 transactions.   Sales of single family homes also registered a significant increase year-on-year, of 22.6%, which the Notaries say, in general terms, reflects the underlying path of recovery of the real estate market in Spain. With regard to the average price per square metre, the Notaries explained that the slight increase registered, of 0.6%, is due to the increase in the price per square metre of single family dwellings, which rose by 3.8% year-on-year, and also to the slight drop in the price per square metre of apartment type dwellings which fell by 0.2% compared to the same month of 2015. Thus, the value per square metre of the single family homes stood at 1,007 euros, while second hand apartments stood at 1,350 euros (+0.6%) and new apartments had a price per square metre of 1,619 euros (+0.3%). Read...

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BBVA Research Predicts 3% Rise in House Prices This Year

Posted by on Apr 23, 2016 in News

According to the latest edition of the Real Estate Situation Spain report, published by BBVA Research, employment and household income will stimulate the demand for housing in Spain, and in fact the study estimates  that home sales in 2016 will register an increase of around 10%, while building permits for the construction of new homes will grow by 30%, year-on-year. The change in trend began in 2015, with home sales rising by 8.6% compared to 2014, thanks to the strength of demand and the easier access to credit, and building permits for new housing climbed by 43% compared to 2014. Moreover, in the first month of 2016 alone, home sales transactions increased by 20.4% over the month of December. With regards to the demand for housing in the medium- and long-term, BBVA Research explained that the improvement in the economy is encouraging less emigration by Spanish nationals and is also an attraction for the arrival of new immigrants, and pointed out that: “If in the long run, the Spanish economy grew at its potential average GDP, immigration will be the element that mitigates the limitations of an ageing population. Forecasts point to positive migration balances in the short-term, which will be a new incentive for residential demand”. El País reported that prices are not expected to fall further since, according to the entity, they have left behind their minimum values, and by the end of 2015 had already showed improvements, at the aggregate level, in all of Spain’s regions, both for new and second hand housing. In the regions where the prices began rising earlier, such as Madrid and the Balearic Islands, the increases have already exceeded by more than 10% the minimum values of two years ago. The forecast points to a price rise of around 3% on average in 2016 at the national level. Read...

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Rental Housing Prices Up 4.3% in First Quarter

Posted by on Apr 23, 2016 in News

The price of rental housing in Spain increased by 4.3% during the first quarter of this year, bringing the average price per square metre up to 7.4 euros per month, according to a price report published this week by property portal, idealista.com. Year-on-year, the increase stands at 5.2%. According to the portal’s head of research, Fernando Encinar, data from the report indicates that there is currently a huge demand for rental housing, with the supply also rising strongly, and that monthly rents are increasing in a uniform manner throughout the country, resulting in robust and stable growth in the market. Encinar points out that, with the interest rates at zero and banks giving historically low returns on savings, many small investors are now finding the returns they are looking for by buying homes and putting them on the rental market. Quarter-on-quarter, all of Spain’s regions registered rental price increases except for the Basque Country, where prices fell by 4%. The Balearic Islands registered the biggest increase, of 11.2%, followed by Madrid (5.2%), Valencia (5%) and Catalonia (4.7%). In contrast, the regions to register the lowest increases were Extremadura (0.3%), Cantabria (1%), the Canary Islands (1%) and Castilla-La Mancha (1.2%).  Read...

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Spanish House Prices Rose by 0.8% in March and by 2.2% in Q1

Posted by on Apr 22, 2016 in News

According to data from the latest IMIE General and Large Markets Index published on Monday by property appraisal company, Tinsa, the average price of finished housing in Spain (new and second hand) remained stable in March registering an increase of 0.8% year-on-year, bringing the accumulated increase in the first three months of the year to 2.2%. The ‘Balearic and Canary Islands’ and the ‘Mediterranean Coast’ were the two geographical areas analysed by Tinsa to register the greatest year-on-year price increases in March, of 4.3% in both cases, while in the ‘Metropolitan Areas’, prices rose by 2.8% year-on-year. In contrast, the average house prices in the ‘Other Municipalities’ and the ‘Capitals and Large Cities’ fell in March, by -1.6% and -0.3%, respectively. El Economista reported that, since January, the ‘Balearic and Canary Islands’ recorded the largest accumulated increase in house prices, with growth of 5.1%, followed by the ‘Other Municipalities’ (+3.4%), the ‘Mediterranean Coast’ (+3.1%), the ‘Metropolitan Areas’ (+2.2%) and the ‘Capitals and Large Cities’ (+0.6%). Tinsa pointed out that the average accumulated decline in house prices in Spain since their peak levels of 2007 remains at 41%. The ‘Mediterranean Coast’ is the area which has registered the greatest accumulated decline since then, of -46.5%, followed by the ‘Capitals and Large Cities’ (-45.1%), the ‘Metropolitan Areas’ (-43.8%), the ‘Other Municipalities’ (-36.1%) and the ‘Balearic and Canary Islands’ (-29.1%). Read...

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Average House Prices Up 1.4% in Q1, Say Tinsa

Posted by on Apr 8, 2016 in News

According to the IMIE Local Markets Index data for the first quarter of the year, published by property appraisal company, Tinsa, the average price of finished housing in Spain (new and second hand) increased by 1.4% compared to the same period of 2015, and is the second consecutive quarter of year-on-year increases. Tinsa highlighted that the number of regions which registered year-on-year growth in their house prices in the first quarter, outnumbered those registering declines for the first time since the crisis began. Leading the recovery of prices in the residential market are Catalonia and Madrid, registering year-on-year advances of +8.2% and +7%, respectively, followed by: the Balearic Islands (+3.8%); Castilla-La Mancha (+3.5%); the Canary Islands (+2.4%); Asturias (+2.2%); La Rioja (+2.2%) and the Basque Country (+0.4%). In contrast, among the regions registering year-on-year declines, the greatest were those recorded for Aragon and Galicia, with rates of -3.5% and -3.1%, respectively. La Rioja is the region which has suffered the greatest accumulated decline in prices since the height of the crisis, with an average reduction in prices of -53.1%, followed by Aragon (-51.3%) and Castilla-La Mancha (-51.2%), while the regions registering the lowest accumulated declines are the Balearic Islands (-28.9%),Extremadura (-31.8%) and Galicia (-34.6%). Read...

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