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Property prices in Spain rose in February as recovery takes hold
The prices of homes in Spain increased by 0.6% in February year on year, taking average values to €1,233 per square meter, according to the latest data from the General Council of Notaires. Prices are strongest in the single family home sector with growth of 3.8% year on year while the price of apartments fell slightly by 0.2% compared to February 2015. The average price for single family homes is now €1,007 per square meter, for second hand apartments it is €1,350, up 0.6%, and for new apartments it is €1,619 per square meter, a rise of 0.3%. At the same time sales are rising steadily, up 22.9% year on year with the growth being led by apartments with transactions in this sector up by 25.9%, the data also shows. Sales of single family homes also registered a significant increase year on year with growth of 22.6% but new homes are not as popular with transactions down by 5.1%. The report from the Notaires states that in general terms the figures reflect an underlying trend of recovery. The recovery is also being reported by estate agents. Barcelona based Lucas Fox International said it recorded a 33% increase in sales in 2015 and much of the growth is coming from Spanish buyers rather than from those from overseas. Property sales to Spanish buyers were up by 86% year on year, according to the company’s latest market report and it said this is a sign that the Spanish property recovery is well underway. International buyers, however, continue to dominate high end sales. Some 17% of prime market buyers in Barcelona purchasing property above €950,000 were to national clients compared to 11% the previous year, the majority of whom were purchasing primary residences. ‘The increased market activity by local buyers was the standout trend in 2015. Spanish buyers have been active predominantly at mid end of the market, attracted by property prices at an eight year low, a recovering economy and increased lending from Spanish banks,’ said Tom Maidment, partner at Lucas Fox. ‘For several years the market has been dominated by international buyers and whilst foreign investors still account for the majority of our sales, the number of local buyers is clearly on the rise and we expect this trend to continue apace throughout 2016,’ he added. Sales to the British were also up by 50% in Barcelona, and in Lucas Fox’s Ibiza office, UK buyers accounted for more than two thirds of home sales, primarily due to the strong Pound against the Euro during 2015. The Barcelona office also saw a significant rise in Dutch and US buyers during 2015. The number of Russian buyers has dropped substantially, however, and are being replaced by buyers from the Middle East. Sales to the Spanish were also particularly strong in Valencia where transactions to local buyers more than doubled. There were also significant increases in Maresme, the coastal area to the North of Barcelona, and… Continue reading
Demand for office space in London remained in quiet first quarter of 2016
Demand for office space in London remained robust through the traditionally quiet first quarter of 2016 with 3.1 million square feet leased by companies, a new report shows. This was marginally below the 10 year average of 3.2 million but despite fears that economic headwinds and the possibility of the UK leaving the European Union could dampen demand, according to the analysis from global real estate advisor CBRE. The largest deal in the first quarter of the year saw Thomson Reuters acquiring 315,400 square feet in Canada Square in the Docklands, lifting overall take-up for the quarter. The data from the report also shows that the amount of office space currently under offer remains unchanged from the previous quarter at three million square feet, having been above the 10 year average of 2.8 million square feet since the beginning of 2014. It explains that the development response has so far tracked demand, with supply increasing by 2% over the course of the quarter to stand at 12.2 million square feet, some 17% below the 10 year average. ‘Between a weak outlook for global economic growth and an upcoming vote on EU membership, businesses have had to contend with a heightened level of uncertainty,’ said Emma Crawford, head of Central London Leasing at CBRE. ‘That demand for office space has remained so resilient speaks volumes for London’s ongoing attractiveness as a global hub for those companies hoping to lay down roots or expand their footprint in the capital,’ she pointed out. ‘Whilst the high level of space under offer is particularly encouraging, we anticipate a more subdued second quarter as the referendum vote gets closer. We will be on course for a rebound in leasing activity in the second half of the year provided the UK votes to remain in the EU,’ she added. Continue reading
House prices fall in Scotland for first time in eight months
Scotland has seen its first dip in house prices for eight months with the latest index showing a fall of 1% month on month despite a surge in sales. Prices are also down 2.1% year on year, taking the average price of a home to £168,020, according to the latest Your Move monthly index. It is the first monthly fall since June 2015 and comes at the same time that homes sales registered their strongest February since 2008 with growth of 19% year on year. It suggest that the growth in sales is down to added demand from buy to let investors ahead of the April stamp duty change and adds the hesitation at the higher end of market ahead of the upcoming elections could be having an effect. Edinburgh has been knocked off the top spot for price growth and Midlothian was the only area to break a record for property values in February, surpassing its pre-crisis peak. According to Christine Campbell, Your Move managing director in Scotland, the sudden dip in prices will be a welcome reprieve for those attempting to get their foot on the property ladder. ‘House prices are also down compared to the same time last year, but this tells us more about the turbulence caused by the introduction of the Land and Building Transaction Tax (LBTT) at the beginning of 2015, than anything happening in the market right now,’ she explained. She pointed out that another key barometer is pointing to a lot of positivity in the market and that is that property sales in Scotland have flouted seasonal trends to jump 10% month on month. ‘This impetus also meant that purchase activity was concentrated at the lower end of the market with aspiring landlords snapping up affordable options. We can see evidence of this in Edinburgh and Glasgow, where sales of flats, a popular investment choice, have soared in the three months to February 2016,’ said Campbell. ‘But at the same time, there has been a slowdown at the top end of the market due to uncertainty surrounding the upcoming Scottish Parliament election and European Union referendum, particularly among foreign buyers. This imbalance between the volume of cheaper and more expensive property sales is skewing the overall measure of price growth, and tipping it downwards,’ she added. Campbell also pointed out that a hesitation at the prime levels of the market has hit average house prices in Edinburgh, knocking Scotland’s capital off the top spot and into second place in the ranking of areas by property value. The index shows that Edinburgh’s house prices have declined 3.2% month on month due to a drop off in high value home sales, with foreign buyers possibly delaying purchases until after the EU referendum. Meanwhile, East Lothian has seen home values up 9.1% or £19,548 from January and in Midlothian house prices have set a new record. The typical home in the area is now worth £198,977,… Continue reading
