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Two sets of figures confirm improvement in sales and prices in Spain
Residential property sales and prices in Spain are rising year on year and more new mortgages are being granted, suggesting the market continues to recover from the economic downturn. The latest figures from the General Council of Notaries show that in September sales increased by 8.7%, house prices rose by 1.7%, and the number of new mortgage loans granted grew by 17.4%. Overall sales stood at 30,328 transactions in September but saes of new homes are not doing well. Indeed, while second hand homes sales increased by 13% year on year, sales of new homes fell by 19.7%. Sales of individual family homes also registered significant growth of 14.7% year on year. The data also shows that the average price per square meter was €1,242, a rise of 1.7% compared to September 2014. Apartments saw prices rise by 2.7% year on year and individual family homes were up 2.3%. A breakdown of the figures shows that new apartments are doing better than existing sales. The average price per square metre of second hand apartments was €1,359, a rise of 2% year on year, while the average price for new apartments was €1,632 euros per square metre, an increase of 13.6% year on year. The Notaires report also says that the home mortgage market in Spain is improving and mirroring the upturn in the real estate sector. The number of new loans approved increased by 17.4% year on year. The average mortgage value was €122,993, a rise of 0.1% compared to September 2014. The statistics also shows that the percentage of home purchases financed through a mortgage was 39.7%, with the average amount of the loan 77.1% of the property value. The latest quarterly data from property registrars confirms the good news. They show that prices increased by 6.6% year on year in the third quarter of 2015, and 2.2% quarter on quarter. It means that prices are now 28.4% below the peak of the market in 2007. The data also shows that sales increased by 6.4% quarter on quarter and 16.6% year on year but they also confirm that new home sales are not doing as well. Quarter on quarter existing homes sales increased by 8.8% while new home sales fell by 2.5%. There has also been an increase in foreign buyers. They bought 13.5% of properties sold in the third quarter compared to 12.8% in the second quarter of 2015. British buyers were the most prolific with 23% of sales to overseas buyers, followed by the French at 8.7%, Germans at 6.4%, Swedes also at 6.4% and Belgians at 5.5%. The number of Russian buyers continue to fall, down to 3.4%. Continue reading
New analysis shows that demand for property in the Alps is rising
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, says a new analysis report. The latest results of the Knight Frank Prime Ski Property Index underline a broadly stable market environment with only 13% percentage points separating the strongest and weakest performer. Val d’Isere and Meribel lead the 2015 Ski Property Index recording annual price growth of 5.8% and 4.5% respectively Prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular . Indeed, the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 while previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. The report points out that currency movements have played a pivotal role in determining demand across the region. For many, having decided to buy a ski home, choosing where to buy and weighing up the pros and cons of the different ski resorts can be a challenging task. The report also points out that Swiss rules on who can buy what, and where, can be complex for even the most experienced property lawyer due to the rules for residents and non-residents according to Lex Koller and Lex Weber. Home to the world’s oldest ski resorts, the French and Swiss Alps attract in excess of 80 million ski visits per annum and account for a third of the total number of ski resorts worldwide. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008 with no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015. Val d’Isere and Meribel lead the 2015 rankings with the price of a typical four or five bedroom chalet in each resort rising by 5.8% and 4.5% respectively in the year to June. The report explains that the length of Val d’Isere’s ski season explains its long- standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods. In Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its 4.5% increase year on year. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers, the report explains. In real price terms, the exclusive resorts of Courchevel 1850… Continue reading
Rents in England and Wales fall 1.2% month on month
Rents across England and Wales fell in October, taking the average to £806 per month, down 1.2% from the all-time high recorded the previous month, according to the latest buy to let index. Despite this, rents are considerably higher than a year ago and in the 12 months since October 2014, average rents have risen by 4.7%. After negative CPI inflation of 0.1%, this represents real terms annual rent rises of 4.8%. The index from Your Move and Reeds Rains also shows that four out of 10 regions in England and Wales have seen local rents defy the more general monthly slowdown. In the lead, the East of England has seen rents rise by 0.7% between September and October. Following this, rents are up 0.4% on a monthly basis in the North East, up 0.3% in the neighbouring Yorkshire and Humber region, and rents in the East Midlands have seen 0.1% month on month growth. On the back of these rises, rents in the East Midlands are now at the highest level on record, at £604 per month, while Yorkshire and Humber has also witnessed a new all-time record, with rents reaching £552. By contrast, rents in the South East lead the generally downwards monthly trend, dropping by 2.5% between September and October. This is followed by the South West with a 2.1% monthly dip and by London where rents are 1.1% lower than in September. On an annual basis, London still leads the field with rents now 10.7% higher than in October last year, followed by annual rises of 8.9% in the East of England and 5.7% in the East Midlands. At the other end of the spectrum, recent falls take Welsh rents to levels 6.7% lower than a year ago. According to Adrian Gill, director of estate agents Reeds Rains and Your Move, the very peak of the lettings season has now passed which means better deals are possible for tenants looking to rent later in the autumn. ‘However, there has been no huge change in the fundamentals pushing rents higher than in previous years. Whether or not the sharpest mismatch between supply and demand lasts into October, the fact remains that the private rented sector is growing rapidly, driven by demand and new properties coming onto the rental market are letting quickly,’ he said. ‘Many tenants are earning more, and while buying a home is still an unrealistic stretch for millions, renting a home is luckily still within reach. The private rented sector is much more closely connected to what people earn than the property purchase market, which has the financial insulation of mortgage payments and interest rates. By contrast, rents are more fundamentally limited by monthly budgets and now that ceiling is being lifted, average rents are likely to continue to rise rapidly on an annual basis,’ he explained. … Continue reading
