New Home Completions Rose by 15.5% to February

Posted by on May 23, 2016 in News

According to recent data published by the Spanish Government’s Ministry of Public Works, a total of 7,326 new homes were completed in Spain in the first two months of this year. This figure represents an increase of 15.5% compared with the number of home completions registered in the same period of last year, which reached a total of 6,342. Thus, this latest data on the number of homes completed in Spain gives a positive start to 2016, after 2015 closed accumulating eight consecutive years of declines. Since the peak levels of 2007, when some 641,419 new homes were completed during that year, the figure has decreased by 93% compared to the close of 2015, when the total was 45,152. Of the total number of homes completed up until the end of February, some 7,087 (96.7%) corresponded to private developer projects, representing an increase of 14.8% over a year earlier, and 239 (3.3%) related to public administrations, with a rise of 41.4%. Among the private developer projects, some 4,421 corresponded to commercial companies, with an annual increase of 31.2%, while 2,504 were for individuals and communities of owners (+17.9%), and 144 were for cooperatives (-67.3%). There were also 18 completion certificates for other types of private developer works. Read...

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House Prices Rose by 0.1% in April, Say Tinsa

Posted by on May 22, 2016 in News

Proprietors Comment ! Has Spain finally turned the corner……it’s been a long wait but perhaps now is the time to consider a purchase but don’t be too bullish as you can still drive a hard bargain !    If we can help you find your ideal property on the Costa del Sol we would be delighted to be of help !  Enjoy the weather summer has finally kicked in !  I have reduced our fees to 1% for the time being so take advantage of this offer ! Malcolm Shaw   Average new and second hand housing prices inSpain remained stable in April, registering growth of 0.1% over the same month of last year, according to the latest IMIE index published by property appraisal organisation, Tinsa. The April increase is, however, more moderate than the year-on-year growth house prices registered in March and February, of 0.8% and 2.1% respectively. Tinsa’s data shows that, between January and April, house prices have accumulated an average increase of 1.9%. Moreover, the index shows that, since the maximum prices reached in 2007, average house prices have accumulated a decline of 41.1%, placing them at levels similar to the summer of 2003. Of the groups analysed by the appraisal company, the Mediterranean Coast was the only one to register a year-on-year increase in house prices, of 4.4%, while in the Metropolitan Areas group, prices remained unchanged from the previous year. The Capitals and Large Cities showed a year-on-year decline of 0.2% and the Balearic and Canary Islands group registered a decline of 0.4%. The Other Municipalities group registered the greatest year-on-year decline, of 0.9%, although this was also the group which registered the greatest accumulated increase in prices between January and April, of 3.8%. Read...

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Foreign Home Buyers on the Increase Last Year

Posted by on May 22, 2016 in News

Foreign home buyers, taking advantage of the strong decline in prices registered in the real estate sector since the bursting of the housing bubble, bought more homes than ever in Spain during the last year. Specifically, these international investors acquired close to 48,000 homes, which represents a year-on-year increase of over 13% and also represents over 13% of the total number of housing transactions carried out. According to data from the Property Registrars House Price Index of Repeated Sales, citizens of the United Kingdom accounted for the greatest volume of housing transactions by foreign nationals, with 21% of the total. French, German and Swedish buyers each accounted for between 6% and 7% of the housing transactions, while Chinese buyers, who are increasingly seeking more investment in Spain, carried out a little more than 4% of the total transactions. All of these investments, together with the home purchases made by Spanish nationals, explain the recent sharp increase in the price of housing. The Registrars explained in their report that the first quarter of 2016 closed with a year-on-year increase of 6.9%, which is slightly above the increase registered at the end of 2015, and they pointed out this is the third consecutive quarter where the year-on-year increase in prices has stood above 6%. Read...

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Mortgages on Homes Up 15.9% Y-o-Y in February

Posted by on May 3, 2016 in News

The number of new mortgages constituted on homes listed in the property registers in Spainreached a total of 24,887 in February, which represents an increase of 15.9% over the same month of 2015, according to data from the National Statistics Institute, which relate to transactions carried out in previous months. February’s year-on-year increase, which represents the 21st consecutive month of increases for home mortgages, climbed by more than five points over the January figure, when the number of new mortgages on homes rose by 10.6%. El Mundo reported that the average value of the home mortgages constituted in February reached 108,466 euros, which is 1.3% less than in the same month of the previous year, while the amount of capital loaned for these mortgages increased by 14.4% year-on-year, to over 2,699 million euros.    Month-on-month (February over January), housing mortgages rose by 6.9%, representing its largest increase in this month since at least 2012, while the capital loaned increased by 9.7%, also registering its most significant increase in the past five years. By region, those which recorded the greatest number of mortgages constituted on homes in February, were Andalucía (4,675), Madrid (4,654) and Catalonia (3,939), while year-on-year the regions with the highest rates of increase on home mortgages were Extremadura (56%), the Canary Islands (55.8%) andCastilla-La Mancha (29.4%). The only region to register a decline in February was the Basque Country(-12.4%). Read...

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Experts Predict a Demand for 440,000 Homes in 2016

Posted by on May 1, 2016 in News

Real estate industry experts from KPMG, Deloitte, N+1, and PwC have forecast that this year Spainwill register around 440,000 home sales, which would represent an increase compared with last year of between 10% and 12%, with transactions amounting to a value of over 20,000 million euros, exceeding the 18,000 million euros in transactions last year. Furthermore, El Economista reported that they emphasised that there is currently a great appetite for real estate investment, since the low interest rates facilitating Spain’s economic recovery are also presenting investment opportunities, and that they have noted increases in real estate investment portfolios. Demand is also recovering, according to the experts, especially private demand, where sales are expected to rise by as much as 12% thanks to the economic growth, the pace of job creation and the best purchasing conditions due to the favourable mortgage interest rates. In this regard, they pointed out that of the 400,000 housing transactions carried out last year, 60% were for individuals, with only 240,000 new mortgages contracted, which highlighted the fact that 40% of these market transactions were made with “pure cash”. Moreover, the experts predicted that, at a time of “significant” demand for housing, there will be a progressive reduction of the housing stock taking place in the towns with more than 50,000 inhabitants, which will influence the increase in the price of land. Read...

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