Property Purchases on Rise Archives

Spanish Property Sales and Transfers Increase in 2017

Spanish Property Sales and Transfers 2017

Up once more compared to 2016 according to figures published by the Institute for National Statistics in Spain (INE).

December saw 125,263 properties registered at Land Registry, almost 2% more nationwide than in the same month of 2016. This includes all transmissions of property, for example inheritances, easements, resale and new first time sales etc.
December Sales showed a 9.2% increase on same month for 2016.
64,135 sales were recorded for December 2017, of which 85% were urban properties and 15% rustic dwellings.
Over the twelve months of 2017, property sales increased by a significant 14.6%

Registered housing sales, including government owned accommodation.

In December, 89.7% of dwellings sold were those on the free-market and 10.3% were protected housing.
In annual terms, the sales of free-market homes increased by 8.4% and protected properties by 16.5%.

17.8% of dwellings transferred by sale in December were new, and 82.2% were Resales.
The number of transactions on new properties increased by 11.0%, while that of Resales increased by 8.8% compared to December 2016.

What does this mean for Andalusia? Making sense of it all.

December 2017

December 2017 alone saw 20,812 registered property transfers for Andalusia.

This equates to 95 transfers for every 100,000 inhabitants. Third highest in Spain after Valencia and The Balearics.

Of this figure, 6,287 were property conveyances – selling of properties in the open market –

This marks a 10.7% annual increase. Compare this to the Catalan region, down by 5.7% and it is tempting to emphasise how markets need stability. Andalusia with its infrastructure, sunshine and stable political environment is a great place to invest. Make up for dips in your portfolio for Spanish property from 2007 onwards; property purchase always has highs and lows, but now is the time to get those bargains once again.

Property Conveyances Andalusia 2017

Andalusia realised 293,538 conveyances for 2017.
An annual variation of 5.6% in change of property ownership for the year including inheritances etc.
This is an annual variation of 12.6% as a result of home sales on the open market (89,337).
It equates to 1,356 per 100,000 inhabitants.
51,878 properties were classified as rustic.
149,995 were urban properties.
14,601 were plots.
All other transactions amounted to 77,064.
16,397 conveyances were new builds. The off plan market has started up again.

We are in the early stages of a new market with properties reduced to lower than their real values by owners who just want to shift them. For those of you who lost money in the downturn of the market, act now to recoup losses. For those of you thinking about investing for the first time, now is the time to commit.

. . .

Housing Sales Rise in Andalusia amidst Buoyant GDP figures for Europe.

January 31, 2018 Property News Property Purchases on Rise

Housing Sales Rise in Andalusia.

Andalusia came second in sales increases for November according to the Spanish Institute for National Statistics. INE. This is because house prices are extremely inviting and it is a lovely place to live or come to for holidays. Property prices are still lower than what they should be. Take advantage now.

Winners and Losers

The Autonomous Communities that registered the greatest annual increases in the number of housing sales in November were Aragón (24.7%), Andalusia (24.3%) and Castilla–La Mancha (23.7%). In comparison, Extremadura (–9.7%), País Vasco (–1.3%) and Asturias (3.5%) registered the lowest annual rates in November.

GDP grew by 2.5% across Europe

In Europe the fourth quarter of 2017 shows GDP up by 0.6% in both the euro area and the EU28 up +2.7% and +2.6% respectively compared with the fourth quarter of 2016.

Seasonally adjusted GDP rose by 0.6% in both the euro area (EA19) and in the EU28 during the fourth quarter of 2017, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.

In the third quarter of 2017, GDP had grown by 0.7% in both zones. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.7% in the euro area and by 2.6% in the EU28 in the fourth quarter of 2017, after +2.8% in both zones in the previous quarter.

Over the whole year 2017, GDP grew by 2.5% in both zones.

GDP and Property Prices Rise

Residential property price indices (RPPIs) directly and indirectly influence economic policy.

From an individual household’s perspective, real estate often represents the single largest investment in their portfolio. It also accounts for the largest share of wealth in most nations’ balance sheets. We do not need to be told how changes in house prices can have far-reaching implications for individuals.

House prices influence home improvement and renovations expenditures and there are property bargains out there to buy and reform. Even some minor reforms can significantly increase the value of the property.

Understanding Supply and Demand

House prices also influence the decision to build new houses (the supply side) as well as the decision to become a homeowner (the demand side). Investors turn to house price indices to measure wealth and to help assess current and future rates of return.

From a broader perspective, analysts, policymakers, and financial institutions follow trends in house prices to expand their understanding of real estate and credit market conditions as well as to monitor the impact on economic activity, and financial stability and soundness. For instance, mortgage lenders will use information on house price inflation to gauge default risk. Central banks often rely on movements in house price indices to monitor households’ borrowing capacity and debt burden and their effects on aggregate consumption.

It is still a buyer’s market in property in Andalusia, but, to quote Bob Dylan, times they are a changing . . . which is great news for those owners trying to sell their properties.

For those looking to buy, invest now or spend more later.

For those looking to sell, it could be that your property is on the market at a price which undervalues it.

Get in touch with us to arrange a tour of properties or to get a valuation of your property with a view to selling it.

. . .

Property Prices Slowly Rise in Spain

September 11, 2017 Property News Property Purchases on Rise

Andalusia once more posting strong results as property prices continue to rise in Spain.

Good news from the Institute of National Statistics for Spain (INE) – the property market continues to bounce back. House prices continue to rise albeit slowly. Andalusia strong in new builds and climbing steadily in Resales. The first quarter of 2016 is still the highest average figure for sales, notwithstanding, the Real estate Market is moving again. If you are considering buying a property, now is the time to commit, before prices rise even higher. Those of you thinking about selling, the average time for sale of a property is approximately 9 months – beat the trends and list with us!

HPI – SECOND QUARTER 2017

Housing prices are up two points over the previous quarter.

Annual evolution of housing prices

The annual variation of the Housing Price Index (IPV) in the second quarter of 2017 increased by three tenths and stands at 5.6%.
By type of housing, the annual rate of new housing prices is 4.4%, more than one point lower than the previous quarter, with consistent growth in property sales for Andalusia.
Meanwhile, the annual variation of Resale housing rose by half a point, to 5.8%.

Quarterly evolution of housing prices

The quarterly variation of the general HPI in the second quarter of 2017 is 2.0%.
By type of housing, new housing prices rose 2.6% between the first and second quarters of 2017. Whilst, ‘second hand’ or ‘resale’ home prices rose 1.9%.

Results by Autonomous Community. Annual variation rates

A total of eight autonomous communities increased their annual rate in the second quarter of 2017. The highest increases are recorded in the Balearic Islands, the Basque Country and Cantabria, with increases of 1.9, 1.2 and 1.1 points, respectively.
Andalusia is up 0.3 points over the last quarter.
In contrast, the greatest decreases of the annual variation occur in Aragon, Principality of Asturias and Castile and Leon, with declines of 2.1, 1.7 and 1.0 points, respectively.

Annual HPI Rates Second Quarter 2017

Results by Autonomous Community. Quarterly variation rates

Most of the Autonomous Communities have positive quarterly rates in the second quarter of 2017.
Community of Madrid, Cantabria, Basque Country and Catalonia recorded the highest increases (of 3.4%, 3.2%, 2.9% and 2.9%, respectively).
Andalusia once more posted a strong quarterly variation rate of 1.6%
For their part, Principado de Asturias (-1.0%) and Extremadura (-0.2%) are the only communities with negative quarterly variations.

These statistics are taken direct from INE’s Press Release dated 8 Sept 2017.

If you are thinking of re-entering the property market in Andalusia as either a Buyer or Seller and are in the provinces of Cadiz or Malaga, get in touch to see how we can help.

Get in Touch!

. . .

A couple and a house under a Spanish Sunset

Property Prices Rise 5.7% in 2016 – Britons Lead the Way

March 5, 2017 Penthouses Property Purchases on Rise Villas

Property Prices rise – now is the time to buy.

House Buying was up 13.9% in 2016 compared to 2015
A quarterly increase of 1.9% in the IPVVR (Case & Shiller Methodology of the price of housing applied to Spain)

Property Sales
93,423 operations as property prices rise
11.2% more than in the same quarter of 2015
The best result of a fourth quarter of the last seven years.
The year 2016 has broken the 400,000 registered sales barrier with 403,743
Best year-on-year figure since mid-2011, with an annual increase of 13.9%. However, behaviour remained distinct with resales increasing to 18.5% while new housing showed a decrease of 3.2%.

Property Purchases by Foreigners

Ex-pats and second home owners find the bargains – unphased by BREXIT.

Brits Top New Owners Figures

The fourth quarter of the year shows the highest percentage of foreign purchases in 2016, with 13.6% of home purchases.
13.3% of purchases were made by non Spaniards, around 53,000 operations, of which the British led the way.

Mortgage Patterns and Stats

The average mortgage debt for 2016 was € 111,656, a year-on-year increase of 2%.

Fixed interest rates were up by 31% in respect to new mortgage loans, a new historic high.

As property prices rise there is growing availability of Mortgages

Average mortgage loan in the fourth quarter was 524.7 euros.
1.7% lower than the previous quarter, while the percentage of salary it cost to pay the mortgage went down 0.45 percentage points to 28.3%.

Year-on-year results marked new historic lows (over the last fourteen years), with € 522.6 million and 27.5%. With respect to 2015, it represents a decrease of 2.7% in the mortgage rate and -0.88 pp. with respect to wage cost.

It’s a great time to buy.

Note: The complete report can be accessed (in Spanish) at the following link: http://www.registradores.org/portal-estadistico-registral/estadisticas-de-propiedad/estadistica-registral-inmobiliaria/ Spanish Land Registry.