Tag Archives: barcelona
More signs of recovery in Spanish property market
The Spanish residential property market is showing further signs of recovery with the latest national figures showing that completed sales in February were higher than 2014 and 2012. But the data from the National Institute of Statistics also shows that sales were lower than 2013. However this was when tax breaks for buyers inflated registered sales. According to property consultant Mark Stucklin of Spanish Property Insight it looks like the market bottomed out in 2014, and is now on the road to recovery, in volume terms at least. Year on year, the market has increased 14% as a whole, but by 53% in the resale market, a substantial increase by any standards. But sales of new builds are not doing well, down 30% compared to the same month last year. Stucklin believes that sales of new homes are crashing as the inventory of properties that people actually want to buy dries up. ‘It’s reasonable to assume that overall sales would have been even higher if the new build inventory was more attractive,’ he said. There is also considerable regional variation. For example, the growth in homes sales in coastal areas that attract foreign buyers has been generally above the national average, as foreign demand is boosting sales in most of those areas. Sales increases were particularly strong in Cadiz province, home to the Costa de la Luz, and Barcelona, a city that is steadily becoming Europe’s number one ‘urban resort’. At the other end of the scale, sales continue to fall in Castellón province, home to the Costa Azahar. ‘There are several structural reasons, including an almost non-existent sales channel, to explain why this attractive coastal region is failing to capitalise on growing foreign demand for holiday homes in Spain. Structural problems take time to sort out, so I don’t see this coast turning into a property hotspot anytime soon,’ Stucklin explained. In the Balearics property market new home sales fell 47% whilst resales increased by 82%. ‘With the pipeline of new developments in the regions bone dry, demand for attractive new homes is completely frustrated,’ Stucklin added. But at least, in general, seven years of consecutive declines in sales have been halted even although Spanish data is not regarded as totally reliable. Prices seem to be rising in some areas. According to one of Spain’s largest property appraisal companies, Sociedad de Tasación, prices rose by 3% in the first quarter of the year. That represents three consecutive quarters of house price increases based on valuations carried out by this company. Sociedad de Tasación also said that the number of mortgage valuations it is doing have increased into double digits although the firm’s chief executive Juan Fernández-Aceytuno believes it is too early to celebrate as there is still much to do to bring the market up to scratch. At the same time, the latest index of asking prices for all types of residential property listed in the Idealista.com database shows that seller expectations increased by… Continue reading →
Valencia and Madrid tipped as potential property hotspots for 2015
Valencia and Madrid have been named as potential property investment hotspots for 2015 as the country’s property market continues its recovery. Madrid is currently undergoing a revival following a rocky ride during the last seven years and Valencia’s position as a key tourist destination mark them out, according to independent real estate agency Lucas Fox International. The firm points out that in Madrid official figures show that sales were up 17% in 2014 over 2013 and the city and surrounding region have seen their first property price rises since 2007. It adds that as well as being popular with overseas visitors Valencia is a business and investment hub has been aided by a government cash injection of nearly €4 million and been boosted by the success of hosting the America's cup in 2007 and the transformation of the City of Arts & Sciences. Latest figures suggest that the number of property sales in Valencia has increased by as much as 30% compared to 2013 figures. ‘Five years ago, Madrid was a city in decline due to the meltdown of the financial sector and bursting of the property bubble, two sectors upon which the Spanish capital was very much dependent,’ said Rod Jamieson, director of Lucas Fox Madrid. ‘Today, following several key structural reforms and an important price correction in the property market, Madrid is back on the map as one of the best places in which to invest. The last year has seen a large increase in foreign investment from many different parts of the world,’ he added. According to Juan Luis Herrero in the firm’s Valencia office the region has developed into one of Europe's most exciting and progressive cities and is known as the 'California of Europe' thanks to its long stretches of coastline, balmy temperatures all year round, renowned gastronomy, rich cultural heritage and architecture. ‘It also offers excellent accessibility to the likes of Madrid, Ibiza and Barcelona, it is no wonder that Valencia is increasingly becoming a target for opportunistic overseas property investors,’ he explained. Both Madrid and Valencia have seen property prices fall by as much as 40% in some areas since the start of the economic crisis in 2007 and the firm believes that both now offer some attractive opportunities to overseas buyers, particularly in areas such as the Old Town and coastal areas in Valencia and the Salamanca, Chamberi, Justicia and Chamartin districts in Madrid. Lucas Fox is also currently collaborating on some key new developments situated in the heart of the city, geared towards residency clients and second home buyers. ‘Madrid and Valencia offer foreign property investors three key things: value for money, an excellent quality of life and a safe long term investment,’ said Lucas Fox founding partner Alexander Vaughan. ‘Both are quintessentially Spanish offering a vibrancy and cosmopolitan atmosphere less palpable in some of Spain's popular coastal areas. We believe that the desirable coastal areas of Barcelona city and province, the Costa Brava,… Continue reading →
Spanish property sales now regarded as stable as they increase five months in a row
Year on year property sales in Spain have increased for five months in a row, signalling that the residential real estate market is becoming more stable. The latest figures from Spain’s National Institute of Statistics (INE) shows that sales increased by 10% in July on an annual basis and by 9% on a quarterly basis. ‘After five consecutive months of annualised sales increases it’s clear the Spanish property market is starting to recover in volume terms, as more buyers enter the market. The figures confirm that overall sales are now stable, if not growing slightly,’ said Mark Stucklin of Spanish Property Insight. ‘Markets are all about transactions and prices, which determine volume and value. Increasing transactions are a sign of confidence that improve liquidity and reduce risk. When buyers outnumber sellers prices start to rise. After almost eight years of consecutive declines in home sales, that is welcome news for Spain but it doesn’t mean the Spanish property crisis is over,’ he warned. ‘It’s now crystal clear that the Spanish property market has established a floor in transaction terms, suggesting sales are unlikely to fall any further. If anything they will continue growing, as they have for the last five month. The question is how sickly or robust will the sales recovery turn out to be,’ he added. The INE doesn’t break down monthly sales figures by nationality, but Stucklin and other real estate experts point out that foreign buyers are driving the sales increase. This suggests that there is plenty of scope for further increases when local demand picks up with falling unemployment and easier mortgage lending. Looking at sales by previous ownership, the trend towards resales continues, with new sales down 8.3% in a year, and resales up 26.8%. ‘Expect the trend to continue as the pipeline of new homes that people actually want to buy dries up over the next year or so. Housing starts have collapsed by 95% since the boom, and the Spanish home building industry has all but disappeared. It might not be a bad time to invest off-plan, if you can find anything to buy off-plan that is,’ said Stucklin. He also pointed out that the label ‘new home’ is starting to lose its meaning in Spain, as most of the new homes currently on the market were built years ago so are now far from being new. Built during a boom when standards fell and prices rose these homes have been collecting dust and depreciating for years. Looking at sales by region, some of the biggest increases took place in the provinces of the interior, for example Cáceres saw sales increase by 87%, albeit from a low base. Sales in some coastal areas like Málaga’s Costa del Sol where foreigners tend to buy, were above the national average. ‘For the time being, and likely for some time to come, sellers outnumber buyers in the Spanish property market, so price pressures will remain muted at a national level,’ Stucklin said. ‘It doesn’t help… Continue reading →
