Tag Archives: european
Spanish prime property market bounces back
The prime property market in Spain has recovered strongly with buyers from Latin America and the Middle East rising, according to the latest index report. The recovery of the market mirrors the recovery of Spain’s economy which is expected to see growth of 2.6% in 2016, more than the UK and Germany, says the analysis from international real estate firm Knight Frank. ‘Ultra-loose monetary policy by the European Central Bank and low oil prices have led to an increase in consumer spending, higher employment and rising household incomes. The market fundamentals are improving,’ said Kate Everett-Allen, Knight Frank partner, But she added that a backdrop of global uncertainty remains. The report highlights two key property market trends. Firstly, the rise of the non-EU buyer. Latin Americans now have a strong presence in Madrid, Middle Eastern buyers are active in Marbella plus Swiss purchasers in Ibiza as the profile of Spain’s luxury buyers shift. The second key trend is the strength of the €1 million to €3 million price band and nearly all of our prime markets now consider it their most active market segment while confidence is returning to Barcelona where the number of residential sales increased by 86% between 2012 and 2015 Online property searches on Knight Frank’s website by Middle Eastern web users searching for a property in Marbella increased by 164% between 2014 and 2015. A third of Madrid’s prime buyers now come from abroad. In 2015 Latin American buyers accounted for 30% of all the prime sales agreed by Knight Frank’s Madrid sales team. The report also says that the top tier of Ibiza’s property market has become uncoupled from the wider market, recording price growth of 10% in the year to April 2016 while Mallorca saw a 55% increase in the number of applications for new residential projects in the first two months of 2016 compared with the same period in 2015. Overall, the report says, rising sale volumes in Marbella suggest confidence is returning to the market. Price growth is slowly shifting into positive territory with newly built modern villas in good locations, beachfront properties along the Golden Mile and gated communities such as Sierra Blanca, Camojan and La Zagaleta outperforming the wider market. It also points out that the recent ruling regarding Marbella’s 2010 Town Plan, which affects around 15% of Marbella’s housing stock, has led to some caution for those properties affected, but it has also refocused attention on properties in established areas which comply with the 1986 Urban Plan, as well as those which sit beyond the municipal boundary in areas such as Benahavís and Estepona. Meanwhile, Mallorca’s prime market, having reached its trough in the winter of 2014, has entered a new cycle of growth. The island’s prime markets of Andratx, Son Vida and Deià remain firm favourites with British, German and Scandinavian buyers. The report also explains that in Mallorca, not only has foreign demand strengthened with sales to foreign buyers up… Continue reading
Residential asking prices up 5% across Ireland in second quarter of 2016
Asking prices for newly listed properties in Ireland increased by 5% nationally and by 3.6% in Dublin in the second quarter of 2016, the latest figures show. As housing supply continues to decline, average time to sale agreed has fallen to just four months, according to the property report from MyHome in association with Davy. The report says that Brexit may dampen medium term expectations but the UK’s decision to leave the European Union is not expected to have material impact on the Irish housing market in 2016. It also says that while the sharp gains in asking prices mainly reflect the recovery in house prices across the country with newly listed properties in Dublin rising by a more modest amount this is still four times the 0.9% increase recorded in the capital in the first quarter of the year. The mix adjusted asking price for new sales nationally is now €231,000 and €326,000 in Dublin, an increase of €11,000 for both markets compared with the first quarter of the year. For the entire stock of properties listed for sale on the MyHome website the national mix adjusted figure is €213,000, up 2.5%, the biggest quarterly increase since the third quarter of 2006. In Dublin the figure is €296,000, up 2%, which brings it back above the level seen in the second quarter of 2011. The author of the report, Conall MacCoille, chief economist at Davy, said the supply shortage and wage inflation were the key factors underpinning the latest price surge and pointed out that the number of homes for sale is down 6.7% on last year to 23,520, which is close to historical lows. ‘Not surprisingly properties are selling increasingly quickly with the average ‘sale agreed’ time falling to just four months, a new low. Outside of Dublin it has fallen to 4.8 months, the first time it has fallen below five since the financial crisis of 2008. While the government has outlined ambitious housing plans, there is no prospect of the shortage of housing supply being alleviated by new construction in the near term,’ he explained. ‘At the same time, home buyers are feeling the heat and reacting to the lack of supply by taking out ever higher mortgage debts, helped by rising wages and growing consumer confidence. In May the average mortgage approval for house purchase rose to €208,000, the first time that the average mortgage approval has exceeded €200,000 since the series began in 2011,’ he added. MacCoille believes that overall the data points to sharp gains in Irish house prices through the remainder of 2016. ‘While the potential impact of Brexit remains something of a wild card, its overall impact on the Irish economy and broader fears regarding the health of the European economy could help to temper medium term expectations for house price growth,’ he said. ‘However that probably won’t emerge until… Continue reading
Prime London property market prices down 0.2% in second quarter of 2016
Pre referendum uncertainty triggered further small price falls in the prime housing markets of London in the second quarter of 2016, according to the latest research. It also slowed growth in regional markets dependent on London buyers, according to the research report from international real estate adviser, Savills. A marginal 0.2% fall in the three month period prior to the referendum left average prime London values down 0.7% year on year and 1.4% below their pre December 2014 level, when stamp duty rates on high value homes were increased. Falls were most pronounced in prime central London where prices fell 1.4% in the quarter. This left values in London’s most exclusive markets on average 3.9% down year on year and 8% below their peak in the third quarter of 2014. Weakened sentiment and a slowing of the London market also impacted the prime regional markets, resulting in small quarterly price falls of 0.4% in the suburbs. Property in the inner and outer commuter zones around London saw marginally positive price growth in the quarter limited to just 0.2% and 0.9% respectively, as the market slowed in response to a lack of urgency amongst buyers. ‘There have been conflicting signals in the market in the period post referendum, which suggests the impact of a vote to leave the European Union will only become clear over coming months as the market finds its level,’ said Lucian Cook, head of UK residential research at Savills. ‘Falls in sterling have prompted some international buyers to re-enter the market, while there has also been a fair share of speculative bids from those hoping to secure a bargain. Against this context, sellers have generally taken a pragmatic approach around pricing without having to slash their expectations,’ he explained. ‘Prime regional markets are at a different stage in their cycle, having been slower to recover peak 2007 values, and therefore appear to have been less affected by pre referendum uncertainty,’ he added. Continue reading
