Tag Archives: madrid
Spanish home prices up 4.5% year on year in third quarter of 2015, rents also up
Residential property prices increased by 4.5% in the third quarter of 2015 compared to the same period in 2014, according to the latest data from the National Statistics Institute. The details from the housing price index means that prices have now increased for six quarters annually in a row following six years of decline and it is the highest quarterly rise since the last quarter of 2007 when growth was 5.7%, just before the global economic downturn. House prices then started falling in the second quarter of 2008 with a decline of 0.3% and continued to fall until the second quarter of 2014. A breakdown of the figures show that the price of new homes fell by 4.3% and other homes were up by 4.5% while quarter on quarter prices overall increased 0.7% which followed a strong rise of 4.1% in the second quarter of the year. In what is a sign of the universal nature of the recovery in the Spanish property market the figures show a rise in prices in almost every region in the country. Asturias and Extremadura recorded the greatest annual rates of increase, up by 2.6% and 2.4%, to 3.5% and 3.3%, respectively, while the greatest annual fall was in the Basque Country and Valencia, down by 0.9% and 0.6% to 1% and 2.1%, respectively. Quarter on quarter nine regions saw prices rise, seven recorded declines and prices remained stable in the Basque Country. The largest quarterly increase was in the Balearic Islands with growth of 3.1% and Asturias up 1.8%, while the biggest fall was in Navarra with a decline of 1.1% and Aragón down 1%. Residential rents are also rising and increased year on year in all regions in November, the first time this has happened for eight years. The data from property porta Fotocasa shows this was led by Catalonia with an annual rise of 10.6%, followed by the Balearic Islands up 7.8%, Madrid up 6.3% and La Rioja up 6%. In Castilla-La Mancha average rents increased by 0.7%, Cantabria was up 1%, the Basque Country up 1.1% and Navarra up 1.3%. Month on month rents increased by 0.5% to €7.02 per square meter per month with 11 regions seeing rises. The Balearic Islands saw a monthly rise of 1.9% and Catalonia up 1.3% while La Rioja, the Canary Islands and Cantabria all saw growth of 0.6%. But average rental prices fell by 1.2% month on month in Galicia, fell by 0.9% in the Basque Country and by 0.8% in Murcia. The data also shows that since the peak of the market in May 2007 when rents were €10.12 per square meter per month rental values have fallen by 30.7% and five regions have seen accumulated declines over 30%. The steepest decline since peak has been in Aragón where rental prices have fallen by 41.6%, followed by Cantabria down 36.1%, Castilla-La Mancha down 35.2%, Valencia down 34.5% and Murcia down 32.3%. The smallest declines from peak are in Castilla… Continue reading
Foreign buyers boosting Spanish property market, especially on Costa del Sol
An increased number of foreign buyers is set to boost the residential property market in the Costa del Sol in Spain, one of the country’s most popular areas with overseas purchasers. A new market forecast report from Instituto de Practica Empresarial (IPE) business school, in collaboration with property company Mar Real Estate, suggests the market could grow by 10% in the area. It also says that the market is set to grow by between 5% and 7% in major cities such as Madrid and Barcelona and 3% in other cities. The IPE says that home prices on the Costa del Sol are already up 10% this year, and now represent 5% of all sales nationwide and if sales continue growing at their present trend, the property market in Málaga province will increase to 20% of the overall Spanish market. The growth is buoyed by foreign demand for holiday homes on the Costa del Sol and the IPE report suggests that surging sales will help reduce the glut of new homes on the coast. Indeed, the excess inventory of new homes is expected to fall by 50% this year. Luxury home sales, in particular, are coming back strongly on the Costa del Sol, according to the IPE report, driven by a better exchange rate in Pounds and Dollars, and the security and stability of Spain. Meanwhile, the latest report from property valuation firm Tinsa says that the Spanish property market is undergoing a widespread recovery. Average property prices fell by 2% year on year in July, the lowest rate of decline since May 2008 but this masks growth areas along the Mediterranean coast in particular with some areas seeing price growth of 2.8% year on year. The data shows that on the Mediterranean coast, where prices have fallen by an average of 47.6% since the economic downturn, the average price of a home has increased by 3.8% since the end of 2014. This is more than large cities and the Balearic and Canary Islands where average prices have risen by 0.2% and 0.9%, respectively. Tinsa data also shows that five of the top 10 most expensive property hotspots are located in the Balearic Islands but Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty, said that there are prices per square metre in these locations that far exceed Tinsa’s estimations. ‘It’s not unheard of to reach as high as €30,000 per square metre for the most desirable Port Andratx home. Demand is strong from some of the wealthiest individuals and families in Europe, the US and beyond,’ she explained. Tinsa figures also suggest that the Balearics weathered the storm of the Spanish property market price ‘correction’ more positively than the rest of the country. While the average drop in prices across the whole country stands at 42%, in the Balearic Islands most regions registered less than a 35% decline. Palma was also highlighted by Tinsa as property transactions increased by more… Continue reading
Spanish property market still on a roller coaster
The roller coaster nature of the Spanish property market recovery is laid bare with the latest data on prices showing that the slowdown has not yet gone, nor has the difference between official figures and those from real estate firms. The latest figures from valuations company Tinsa show that at a national level property prices are still falling although there are regions where they are rising while the latest data from the Housing Department show prices falling slightly. The Tinsa data for May, based on the company’s own valuations, shows that average national house prices were down 3.6% year on year but this global figure hides considerable regional variations. For example the biggest price falls are in provincial capitals and large cities with a decline of 4.9%, while house prices on the Mediterranean coast were down 2.3% and in the Balearics and Canaries there was a fall of 2.1%. However, year on year house prices on the coast are up 1.4% compared to May 2014 but are still down 48.8% compared to the peak of the market and according to Tinsa the national average peak to present fall is 42.1%. According to the government figures the average price for Spanish property fell a 0.11% in the first three months of this year, the smallest quarterly decline since the economic crisis began and down from a fall of 0.36% in the last quarter of 2014. This takes the average property price to €1,458 per square meter and this is down 36.3%, adjusting for inflation, since the peak of the market in 2008 when it was €2,100 per square metre. A regional breakdown of the figures shows that seven autonomous regions registered year on year price growth led by the Canaries up by 3.56%, Aragon up 1.9%, Madrid up 1.67%, the Valencian Community up 0.69%, Extremadura up 0.57%, the Balearics up 0.1% and Andalusia up 0.05%. The rest of Spain is still seeing annual price decreases. In Asturias prices have fallen by 6.53 year on year, by 3.72% in Castilla-León, by 3.15% in Navarra, by 2.29% in Galicia, and by 1.47% in the Basque Country. According to the Housing Price Index (HPI) published by the National Statistics Institute, the price of homes rose by 1.5% in the first quarter of the year, compared to the same period of 2014, which is below the 1.8% price increase recorded at the end of 2014. But the index has recorded four consecutive quarters of year on year increases following six years of declines. The index also shows that prices for new homes are rising faster than others. Second hand homes say a rise of 1.1% in the first quarter of the year while new home prices rose by 4%. Continue reading
