Spain’s Coastal Development Grows 33% in 24 Years

Posted by on Aug 25, 2016 in News

According to the conclusions of a report published by the Sustainability Observatory, some 27.8% ofSpain’s 7,898 kilometres of coastline is already urbanised or transformed by man. In the 24 year period between 1987 and 2011, occupation of the first line of coast – 500 metres from the sea – has grown by 32.9%, at a rate of 22.7 km every 12 months. Continuing at this pace, in 251 years 100% of the coast will be urbanised. The Observatory’s team of investigators  – which includes ecologists, engineers, economists, geographers and sociologists – based their research on data from the National Geographic Institute, which periodically updates the information on coastal occupation with satellite photographs from within a European project. The Mediterranean and South Atlantic coastal areas are the most affected, with 35.2% (1,351 km) of their 3,829 kilometres of coastline already occupied artificially, either by houses, shopping areas, infrastructures or mining. In the case of the North Atlantic and Cantabrian coast, the level of occupation was 21.6% in 2011, while in the Canary Islands it stood at 19.7%. However, between 1987 and 2011 the pace of urbanisation on these islands has been the highest, with the volume of kilometres occupied increasing by 42.6% in those 24 years. Málaga is the province which ranks highest for coastal transformation in Spain, with 81% of its first line already developed, followed by Valencia, with 67% already artificially transformed. According to Fernando Prieto, Raúl Estévez and Carlos Alfonso, collectively responsible for the report for the Observatory, the most troubling aspect is the speed of the coastal transformation, and they pointed out that if it maintains at this pace it will result in a “collapse, a congested coastline”. In their opinion, the Government should implement measures for the restoration and safeguard of areas which still remain intact and also take steps to restore the wetlands and forests. Moreover, they warn that over-development of the coast could eventually harm the tourism sector, a pillar of the Spanish economy. Read...

Read More »

Shared Apartment Rents Have Risen by 22.5% Y-o-Y

Posted by on Aug 25, 2016 in News

Renting a room in a shared apartment in Spain has an average price of 280.10 euros per month, which is 22.5% more than a year ago, according to a report published by pisos.com. The cities of Madrid and Barcelona together account for 29.1% of the offers of available accommodation of this type, while 46% of the demand for rental apartment sharing is concentrated in these same cities. Data compiled for the report shows that 54.8% of the future potential tenants are female, while 45.2% are male. Moreover, the age group most looking to rent a room in a shared apartment are those aged between 18 and 25 years, accounting for 49.4% of the total, followed by those aged between 26 and 35 years, with 29.3% of the total. According to the managing director of pisos.com, Miguel Angel Alemany, “the bulk of the demand for shared apartments is in the large capitals, since they offer the greatest opportunities for employment and training”. It is because of this, Alemany notes, that in Madrid and Barcelona, “the supply is unable to absorb the demand, thus opening a gap that has resulted in the increase of rental prices”. Read...

Read More »

Completion Certificates for New Homes Fell by 8% Year-on-Year to May

Posted by on Aug 25, 2016 in News

According to data from the Ministry of Public Works, between January and May of this year, the construction of 17,171 new homes were completed in Spain, which represents a decline of 8% in comparison with the same period of the previous year when some 18,671 were completed. Thus, the number of completed homes returns to negative rates, after remaining positive up until April (2%), as in May alone they registered a decline of 36.7%. In 2015, the number of new homes completed in Spain accumulated eight consecutive years of declines and up until April this year a change in trend was indicated. Since the peak levels of 2007, when a total of 641,419 homes were constructed, the figure has fallen by 93% up to the end of 2015, with just 45,152 completed. Of the total number of homes completed up until May, some 16,910 (98.5%) related to private developer projects and 261 (1.5%) to public administrations. El Mundo reported that, compared to a year earlier, housing construction by private developers fell by 8.4%, while in the case of public administrations it increased by 28%. Read more...

Read More »

More Chinese Investors Searching for Spanish Real Estate

Posted by on Aug 25, 2016 in News

Spain is becoming an increasingly popular destination for real estate investment for many middle and upper class Chinese citizens looking for good investment opportunities. According to data compiled by juwai.com, the biggest Chinese portal for property abroad, with an average of two million visits monthly to the site, searches on Spanish housing have increased by nearly 80% on average in the last year, placing Spain as the seventh destination worldwide for Chinese investors after the United States, Australia, Canada, United Kingdom, Thailand and New Zealand. Jan Kot, head of Juwai China explains: “Spain has never ranked among the five most popular destinations, but its appeal is growing very fast among Chinese investors due to the country’s good investment opportunities, and an increasing knowledge of the culture of the country”. The areas most in demand areBarcelona, Madrid, Alicante, Valencia and Marbella – the first two by merit of being large cities, and the others as attractive tourist destinations with competitive prices. El País reported that the portal also highlighted the attraction of the Golden Visa, which allows any Chinese investor paying over 500,000 euros in real estate to obtain a residence permit in Spain and with it, access to the entire Schengen area. Kot says that: “Compared with other programs, the Spanish is more simple to obtain, not only because the limit is lower, but also because of the flexibility of other requirements such as the number of days that one has to remain in the country. They may also have access to other social benefits like any other citizen, such as free education and healthcare”. Countries like the United States, Australia and Canada have recently tightened immigration policies for investors, which has pushed up the demand in Europe. In the juwai portal alone there are some 15,000 offers of properties in Spain, mostly houses and apartments, but also hotels, blocks of offices and even vineyards worth millions of euros. Read...

Read More »

Home Sales Increased by 19.6% to June

Posted by on Aug 25, 2016 in News

Sales of housing in Spain grew by 19.6% in the first half of the year, reaching a total of 225,551 transactions, thanks to the second hand market, according to the latest statistics released by the General Council of Notaries. Between January and June, some 153,631 transactions were carried out on second hand homes, which represented an increase of 19.29% over the previous year, and accounted for 68.1% of all the homes sold in the period. In contrast, the number of transactions on new homes reached a total of just 15,675 to June, which represents a decline of 13.6% over the previous year.  Thus, according to the Notaries’ data, during the first half of the year there were ten times the number of transactions on second hand homes than those carried out on new homes. This upward trend continued in June, when home sales grew by 7.1%, year-on-year, driven by the transactions on second hand homes, which increased by 11.5% reaching a total of 29,052 units, while transactions on new housing registered a decline of 33.4%, with a total of just 2,751 sales.   At the end of June, the average price of second hand houses stood at 1,418 euros per square metre, representing an increase of 6.1% over a year earlier when the average price stood at 1,336 euros per square metre. With regard to the price of newly built dwellings, the average price at the end of June stood at 1,886 euros per square metre, which is 12.7% more expensive than in June 2015 when the average price was 1,673 euros. Read...

Read More »