House prices throughout Spain seem to be rising as the market slowly raises its weary head above the doom and gloom of 2012 and 2013.
Some areas do seem to be rising more quickly than others though. With credit being offered once again by the banks, the outlook is definitely more positive than it has been in recent years.
How long does it actually take to sell a property on average now? Well it depends on where the property is and what the demand is like in the area.
According to new findings, in Spain on average a property takes around 10.2 months to sell which is already considerably less time than it was six months ago, when the figures stated that on average it took 10.6 months, and even less so than the 11.5 months in 2014 and 13.2 months in 2013.
...continue reading "How long does it take to sell a property in Spain?"
Living in Spain’s most expensive region, Madrid, costs 43% more than in its cheapest, Extremadura, according to a study presented by Jaume García, former head of the National Statistics Institute and now a professor at Catalonia’s Pompeu Fabra University.
What’s more, the study, which was commissioned by the Catalan regional government, shows that taking the cost of living into account reduces the disparities in income among the regions.
Without applying any kind of correction, the Basque Country is the Spanish region with the highest GDP per inhabitant (€30,051), while Extremadura has the lowest (€15,133) – a difference of 98%, almost double.
After taking the cost of living into account, the Basque Country remains the region with the highest per capita income (€27,895), but Andalusia moves into last place with €18,058. At the same time, the difference between the top and bottom regions drops from 98% to 54%, according to the report.
The study uses data from 2012 to calculate the purchasing power parity (PPP) of Spain’s different regions – a measure that allows the analysis of an economy’s level of production or wellbeing, cost of living, and poverty while leaving out such factors as variations in prices.
...continue reading "Living in Madrid is 43% more expensive than in Extremadura"
Spanish house prices have increased at their fastest rate since the downturn, up 5.12% in the 12 months to the end of June, the latest index report shows.
This is up from 2.65% in the previous quarter, according to the data from the Property Registrars which also shows that quarter on quarter price increased by 2.8%.
The latest rise in price growth means that prices are down 29% nationally since the peak of the market, but there are considerable regional variations.
The recovery in the Spanish property market is limited to the most popular areas where houses are in demand such as Madrid, the Balearics, the Canaries, Catalonia, and the Valencian Community and the report points out that this is reflected in prices.
It points out that sellers and buyers are adjusting their expectations accordingly. In more and more areas buyers who have been adopting a wait and see attitude whilst prices fell are now entering the market.
...continue reading "Property registrars in Spain report annual price growth of 5.12%"
The timid recovery of the Spanish real estate market has started to become noticeable in property prices.
Free-market house prices experienced their first quarterly increase in late 2014, according to figures released by the Public Works Ministry. There had not been an uptick in the market since early 2008.
Prices rose 0.5% in Spain as a whole thanks primarily to a surge in demand for existing homes, which now represent nearly two thirds of sales.
The value of existing homes grew 0.2% from the previous quarter, while the price of new homes retreated 0.1%.
The average price of free-market housing in the last quarter of 2014 was €1,463.10 a square meter.
...continue reading "Seven Spanish regions ended 2014 with higher prices than in 2013"
The Spanish real estate market experienced its first good news after a slump lasting over six years in the second quarter of 2014.
Between April and June house prices rose for the first time since early 2008, according to figures released by the National Statistics Institute (INE).
The Housing Price Index grew an average 0.8 percent compared with the same period in 2013, the numbers show.
Broken down by type of housing, the price of new homes rose 1.9 percent while that for existing homes grew 0.2 percent.
The drop in house prices had been slowing for several quarters, suggesting a gradual market recovery. The sharpest decline was registered in the third quarter of 2012, when prices dropped 15.2 percent compared with the same period in 2011.
...continue reading "House prices in Spain rise for the first time since the beginning of the crisis"
Home prices in Spain fell 4% in May compared with a 10.4% drop recorded in May 2013, indicating that the market could be nearing the bottom.
The data from the leading valuations company Tinsa index also shows that this was the lowest annual drop in May since 2008.
The biggest price declines were on the Mediterranean coast, down 7.9%, but even that was the slowest drop since 2010. Madrid saw the smallest fall at 3.3% and other large cities also saw smaller than usual price declines.
Recently released figures from the National Institute of Statistics showed a 1.6% annual decline in prices recorded in the first quarter of the year compared to a 7.8% annual decline in the fourth quarter of 2014. On a quarterly basis prices fell 0.3% compared to a 1.3% drop in the fourth quarter.
...continue reading "Falling of property price in Spain have slowed substantially"
House prices in Spain will continue to fall during 2014 and bottom out in 2015 when the demand for housing is likely to improve, according to a new analysis of the nation’s residential real estate market.
The report from Fitch Ratings points out that according to figures from the Housing Department the Spanish house price index (HPI) reached a peak year on year decline of 10% in December 2012 and fell by an additional 2.3% by the third quarter of 2013 which means that overall, the HPI has fallen by almost 30% since the onset of the financial crisis.
Despite the deceleration of house price decline, Fitch predicts that prices will continue to fall during 2014 and bottom out in 2015. It says that the house price decline will be driven by an estimated property overhang of above one million units.
The report also points out that during 2013 banks become increasingly willing to offload retail residential assets at deep discounts. Fitch expects this trend to continue, which, combined with the initiation of the commercial activity by the asset management company SAREB in the middle of 2013, will continue to put significant pressure on house prices.
...continue reading "House Prices Keep Falling in 2014"
This summer the cost of holiday rentals in Marbella has remained the same as last year, in the luxury sector as well as for standard properties. The town has not been affected by the fierce price war which has affected other tourist areas of the province, where the cost of holiday rentals has dropped by up to 20 per cent compared with the summer of 2012.
Estate agents in the Marbella area confirm that prices have remained at the same level, although they point out that the demand differs according to the target market. The most fortunate property owners are those who attract clients from Eastern Europe. Travellers who come from Russia, Ukraine, Kazakhstan and other countries from the former Soviet Union are the most popular this year because they rent the most attractive properties. In fact, they are able to pay an average of between 3,000 and 5,000 euros per week for a villa.
Spanish clients, on the other hand, are very cautious about the price they pay for a holiday rental. The average price a Spanish family is willing to pay, normally for a fortnight, is about 2,000 euros. This is a similar figure to that of last year.
...continue reading "Marbella’s summer rental prices remain unchanged"
The Spanish property crisis and lack of liquidity has increased the amount of properties on offer related to holiday rental businesses such as rural houses for short lets and hostels, it is claimed. Not only has the number increased but also the variety of profiles and business models.
There has been a 200% increase in the number of these types of properties being offered by Spanish vendors to the UK and other international markets. There are two main reasons for this change.
Firstly is a lack of liquidity in the economy in Spain which has forced Spanish business owners to sell their business.
Spain’s new visa for non-Europeans buying property worth over €500,000 is set to spark huge interest from wealthy overseas buyers, it is claimed.
Secondly there has been an increase in expats seeking to move to Spain to start a new life and looking for a property related business. They are finding that there is the opportunity to buy a property at a reasonable price and start using it to earn an income from day one.
...continue reading "Increase of Spanish holiday rental"
The ongoing fall in house prices in Spain accelerated in the first quarter of this year as the housing market remained in a five-year-long slump and as banks sought to offload property on their books.
According to figures released last week by the National Statistics Institute (INE), house prices fell an average 14.3 percent in the period January-March from a year earlier after declining 12.8 percent in the fourth quarter of last year.
New home prices fell 12.8 percent, while the average price of existing homes decreased by 15.3 percent. Prices have now fallen by 39 percent from their peaks toward the end of 2007.
Prices fell across the country, with the biggest drops experienced by the regions of La Rioja (18.0 percent) and Madrid (16.8 percent.)
...continue reading "Pace of house price deflation picks up at start of the year"