Spain House Prices Register Biggest Rise Since 2007

Posted by on Jun 18, 2016 in News

House prices in Spain increased by 6.3% in the first quarter of 2016, year-on-year, representing their biggest rise since the third quarter of 2007, when prices increased by 9.2%, according to the latestHouse Price Index data published by the National Statistics Institute. This latest increase, which is over two points higher than the increase registered in the fourth quarter of 2015 (4.2%), is the eighth consecutive quarter in which housing prices have registered positive annual rates. By type of dwelling, the price of new housing rose by 6.1% compared with the first quarter of 2015 – its biggest increase since the first quarter of 2008 – while the price of second hand housing increased by 6.4%, registering its most significant growth since the third quarter of 2007. Quarter-on-quarter (first quarter of 2016 over fourth quarter of 2015), house prices increased by 1.5%, thus returning to positive rates after registering a decline of 0.1% in the fourth quarter of last year. Read More...

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Spain Will Need 140,000 New Homes Per Year Until 2025, Says IESE

Posted by on Jun 18, 2016 in News

A recent study on the estimation of needs and housing prices in Spain, carried out by IESE Business School’s Professor of Financial Management, José Luis Suárez, estimates that 140,000 new homes will need to be constructed in Spain each year up until 2025, when the price of housing will return to 2007 levels. Suárez estimates that the Spanish real estate market will need an average of 100,000 new homes annually until 2020, and that from 2020 to 2025, the demand will stabilise at around 140,000 homes per year. Between 1991 to 1997 the construction of new housing in Spain averaged at around 250,000 dwellings annually; between 1998 to 2007, an average of 580,000 new homes were built in Spain each year; and from 2007 until 2014 the construction of new housing in Spain fell to around 75,000 homes annually. Also, the study estimates that the price of new housing in Spain will return to 2007 levels by 2025, 18 years since the onset of the crisis, with the price of housing in Spain reaching 2,046 euros per square metre in 2025, rising to 2,212 euros per square metre in 2027. Read...

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Home Foreclosures Down 31.2% in Q1

Posted by on Jun 13, 2016 in News

The number of foreclosures initiated on primary residences in Spain stood at a total of 6,118 in the first quarter of this year which, according to the latest foreclosure statistics published by the National Statistics Institute, represents a decline of 31.2% compared with the same period of last year. Quarter-on-quarter, the number of foreclosures on homes fell by 11.3% in the first quarter of 2016 over the fourth quarter of 2015. In the first quarter, a total of 19,354 foreclosures were initiated, which is 37.9% less than in the same period of 2015 and 14.1% less than in the previous quarter. Of these, some 18,198 related to urban properties (including housing), and 1,156 to rural properties. El Economista reported that foreclosures on urban properties fell by 38.6% in relation to the first quarter of 2015, and by 14.8% over the previous quarter. Within these, some 11,278 of the foreclosures were on housing, down 36.7% from the same period of 2015. Within the homes segment, the number of foreclosures on homes of individuals totalled 7,854 in the first quarter (-30.9% year-on-year), of which 6,118 were primary residences and 1,736 were not the main residence of the owners. The latter fell by 29.8% compared with the first quarter of 2015. According to the statistical agency, of all the family homes currently existing in Spain (18,408,300), foreclosures were initiated on only 0.03% of them between January and March 2016. Read More...

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New Housing Stock Predicted to Reduce by 25% in 2016

Posted by on Jun 13, 2016 in News

The market survey and research platform launched by Servihabitat,  Servihabitat Trends, recently published their second edition of a report on the “Residential Market in Spain”, which analyses the evolution and forecasts of the Spanish real estate sector, and provides a comprehensive vision of the housing market’s situation in 2015 as well as forecasts for the end of 2016. According to the study, the housing market in Spain is recovering at a moderate yet sustained pace, due to the fact that certain regions showed clear signs of recovery in 2015, and a significant improvement is expected to continue this year. Among the main conclusions of the report they state that the number of housing transactions remained stable throughout 2015, and that a 10% year-on-year increase is expected in Spain in 2016, reaching a total of over 440,000 homes sold. The new housing stock of unsold homes will continue to decrease in 2016, dropping by 25% from 492,000 homes last year to 367,500 at the end of this year. In light of this situation, the report indicated that production maintained an upward trend in 2015, and forecast that new approved projects as well as those started and completed will show a two-digit increase in 2016. Read...

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Resale Housing Prices Fell by 0.2% in May

Posted by on Jun 13, 2016 in News

Resale housing in Spain registered a price decline of 0.2% during the month of May, to stand at an average of 1,537 euros/m2, according to the latest real estate price index prepared by property portal,idealista. This figure represents the fourth consecutive monthly price decline for second hand homes, which have accumulated a reduction since February of around 4%. In fact, the current price is 60 euros/m2 cheaper than in January, when it stood at 1,597 euros/m2, which represents depreciation of around 5,400 euros in a typical home of 90 m2. Since January, when the price of second hand housing rose by 2.1% – with increases in 13 of Spain’s 17 regions – these homes have registered declines of 0.9% in February, of 2% in March and of 0.8% in April, followed by the 0.2% reduction registered at the end of May. Looking at the data for April 2015, when the price of resale housing stood at 1,591 euros/m2, the year-on-year decline is 3.4%. During the month of May, some five of the 17 regions registered increases in the price of second hand homes. The greatest increases were registered in the Canary Islands, Murcia and the Balearic Islands, all of which noted price increases of 0.6%, followed by Navarre (+0.4%) and Asturias (+0.1%). In Catalonia, prices remained unchanged. In contrast, the greatest declines were those registered in La Rioja (-1.8%), Castilla-La Mancha (-1.4%) and Extremadura (-1%). Read more...

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