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Property Sales Buoyant

Property Sales Buoyant After BREXIT and Fixed Rate Mortgages Increase

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Property Sales Buoyant

The price of housing in 2016 increased (on average) by 5.7% over 2015, according to the Association of Property Registrars.

The purchase and sale of registered property in the fourth quarter reached 93,423 transactions, 11.2% more than in the same period of 2015 and the best result of any fourth quarter in the last seven years.

Over the whole of 2016, the market surpassed the barrier of the 400,000 conveyances: 403,743 operations, showing an increase of 13.9%.

Property resales rose by 18.5%, while new housing experienced a decrease of 3.2%.

Of the total transactions, 13.3% were made by foreigners (about 53,000 transactions).

By nationality during the fourth quarter, not put off in any way by Brexit, The British led with 16.4%, followed by Germans (9.2%), French (8.5%), Swedes (6.4%), and Belgians (6.3%).

Mortgages – Sales Buoyant after Brexit

  • Average mortgage of 111,656 euros
  • The average mortgage in 2016 was 111,656 €, resulting in a year-on-year increase of 2%.
  • 31% of new mortgage loans are fixed interest rate, a new historical high.
  • 2.4%, is the initial interest rates for new mortgagors, similar to the 2016.
  • The length of mortgage taken out decreased slightly during the fourth quarter, to 23 years and two months.
  • The average monthly mortgage rate in 2016 stood at 522.60 euros (2.7% less than in 2015), eating up an average of 27.5% of salary.

Brexit No Sweat

It will be Wednesday 29 March when the United Kingdom activates Article 50 of the Treaty of Lisbon, the mechanism that initiates the process of Britain leaving the European Union.

Around 284,000 Britons, according to official data, reside permanently in Spain.

British Residents in EU

The National Bureau of Statistics has updated the figures of British residents in the European Union, and vice versa. About 900,000 Britons are scattered throughout the EU, while 3.1 million Europeans live in the United Kingdom.

Brits Choose Spain

Spain is the EU country where most British people live (308,805). However, it is ninth in the list of countries whose citizens move to Britain, behind Poland, Ireland, Romania, Portugal, Italy, Lithuania, France and Germany.

London waits to see what the EU proposes for British residents in the 27 countries in order to match the arrangements and provide certainty.

Spain - The Lifestyle Choice

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A couple and a house under a Spanish Sunset

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

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.

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