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Here you will find news, views, events and information relating to real-estate in Spain.

Third Quarter Sees Rental Costs Rise

Rental costs increased in Q3

Rental prices increased in Q3

The price of housing for rent in Spain increased by 0.5% during the third quarter of 2017. This leaves the average price per square metre at 9.4 euros per month. The annual variation is +24%, according to the latest report from Idealista.

Fernando Encinar, head of idealista studies, says “The end of summer brings with it some moderation in the evolution of rental prices. The double-digit increases experienced in the first half of the year disappear in this quarter and the differences between markets are further marked. The two speeds become more apparent even within the cities themselves. In Madrid, for example, renting a house within the M30 is, on average, 47% more expensive than doing it outside, where it is still relatively easy to find cheap rents.

At idealista, far from seeing the situation as worrying or thinking of a potential bubble, we believe that the rental market is bullish but flexible, with a ceiling. The demand cannot exceed the price and those owners who overprice will have no choice but to lower their expectations in order to find a tenant. Demand remains very strong and still higher than the available housing stock.”

Autonomous Communities

11 autonomous communities now have higher prices than they did three months ago. The highest increase has been recorded in the Canary Islands where prices have grown by 3.8% since June. Other communities to see an increase are Madrid (3.7%), Catalonia (3.1%), Euskadi (1.7%) and Navarra (1.4%). The largest fall during the third quarter was seen in the Balearic Islands where prices fell by 5.9%.

The most expensive community to rent is Catalunya with an average monthly cost per square metre of 14.5 euros. The next most expensive are Madrid (14 euros) and the Balearic Islands (12.7 euros). The cheapest communities are Extremadura (4.2 euros), Castilla-La Mancha (4.6 euros), Galicia and La Rioja (5.3 euros in both cases).

Provinces

26 of Spain’s provinces saw rental prices increase over the summer. The biggest change was recorded in Sevilla where prices have increased by 5.8% since June. Also registering significant increases in rental costs over Q3 were Ourense (5.6%), Álava (4.8%), Las Palmas (4.5%), Madrid (3.7%) and Barcelona (3.6%).

The largest falls occurred in Huelva (-7.9%), followed by the Balearic Islands (-5.9%), Badajoz and Murcia (-3.6%) in both cases.

The ranking of the most expensive provinces is headed by Barcelona (16.3 euros/m² per month), Madrid (14 euros/m²) and the Balearic Islands (12.7 euros/m²). Ávila has the lowest rental costs, with an average price of 3.9 euros/m² per month. They are followed by Jaén (4 euros/m²) and Cáceres (4.1 euros/m²).

Capitals

In Valencia, rental property owners have upped their prices by 6.1% during the third quarter. In Guadalajara the increase was 6%. Also significant was the rise in Seville, where prices are 5.8% higher than they were three months ago.

Badajoz recorded the biggest drop (-6.2%) among the 12 capitals that have seen their rental costs fall this summer. Following are falls in Salamanca (-4.1%), Palma and Murcia (-3.3% in both cases).

Andalucía

In the community of Andalucía, rental costs are 1% higher than they were at the end of the second quarter. Compared to the same period in 2016 the variation is +13%.

The province of Málaga has seen rental prices fall by 0.7% over the the summer. However, on the annual variation the change is +15.4%, giving an average cost per square metre, per month of 9.1 euros. This time last year the price was 7.9 euros.

In Marbella the cost of renting a property has fallen by 4.8% during the third quarter. When compared to September 2016 the variation is +9.2%, leaving the monthly average price per square metre at 11.5 euros. In September 2016 the price was 10.6 euros.

Estepona saw a similar situation. The average price at the close of Q3 was 9.3 euros, a quarterly fall of 0.7%. However, on the annual variation prices have increased by 9.8%. This leaves the average rental cost per month, per square metre at 9.3 euros. This time last year the cost was 8.5 euros.

 

Construction Worth Millions Approved in Marbella

Numerous properties will be built in Nueva Andalucía
Construction licences approved in Nueva Andalucía

Nueva Andalucía saw 2 new projects approved

The number of building permits issued by the Marbella council has increased over recent months. At a meeting earlier this week, the council approved licences for the construction of various real estate projects in the town which amount to 17 million euros. 90% of that capital will be invested in Nueva Andalucía in the construction of two large residential complexes and a super luxury villa. The rest of the money will be for development to the east of Marbella. These projects include the urbanisation Santa Clara Golf with the construction of three new luxury villas.

These figures show that city planning is on the path to growth and that investor confidence is strong in the wake of the full adoption of the consolidated text of the PGOU of 86 into Andalusian law – Law of Urban Planning of Andalusia (LOUA) – which took place in September.

The approval of these licences shows, in the words of municipal spokesman, Félix Romero, “the healthier tone” that is beginning to show in the city of Marbella.

The Projects

Specifically, permits have been approved for the construction of four villas and 85 apartments. These projects will be developed in Santa Clara with the addition of three new luxury villas. These properties each have a value of around 600,000 euros. Another single-family home was approved for construction in the urbanization of La Cerquilla, Nueva Andalucía. This one has a value of over 900,000 euros.

The apartment projects approved are for one development of 44 homes and another of 41, both in Nueva Andalucía. The values are 7.7 and 7.2 million euros, respectively.

“Our approach has been to unlock the situation and the fruits are already being seen”, Romero stressed.

Romero, who appeared before the media to announce the licence approvals by the council, said that the urban situation in the city requires the adoption of measures to grow in the future. This objective involves the writing of a new PGOU, a purpose towards which the efforts of the council, led by the Urban Planning Councillor, Kika Caracuel (PP), are headed.

 

Property Sales Increased in August

Sales of Spanish property increased in August
Spanish property sales increased in August

Poperty sales increased in August

There were 142,976 property transfers (sales/purchases, inheritance, exchange, donation) registered in the property records in August. This is 5.9% more than in the same month last year. This is yet another increase and adds further confirmation that the Spanish property market is recovering well from years of slowdown following the 2007 crisis.

In terms of property sales, there were 79,374 transactions recorded in August, an annual increase of 14.3%, according to the latest data from the INE.

Of the property purchases registered in August 87.8% were urban properties, with the remaining 12.2% being rural. In the case of urban properties 59.3% were home sales.

The number of transactions involving rural properties recorded an annual increase of 8.1%. Sales/purchases of urban property increased by 15.2%. Within urban properties, sales of housing recorded an annual increase of 16%.

When compared to the previous month, the variation in regard to home sales was +6.3%. This is 0.7 points less than in the same month of the previous year. The monthly variation for all property sales was +2.5%.

By Autonomous Community

In August, the total number of property transfers in the property records per 100,000 inhabitants reached its highest values in La Rioja (644), Castile and Leon (553) and Aragon (542).

Castilla-La Mancha (17.2%), Galicia (14.3%) and Cantabria (12.6%) recorded the highest annual rates of change.

The lowest annual variations were found in Comunidad Foral de Navarra (-14.0%), Extremadura (-12.5%) and Aragon (-10.1%).

Regarding the purchase of houses, the communities with the highest number of transmissions per 100,000 inhabitants are Valencia (163), Illes Balears (152) and Andalusia (125).

The communities with the largest annual increases in the number of housing sales in August were Castilla-La Mancha (37.9%), Valencia (32.5%) and Galicia (23.0%).

The lowest annual variations recorded in August were in Navarra (1.9%), Basque Country (4.0%) and La Rioja (4.4%).

Tourist Spending Increased in August

Tourists spend 10% more than last August
Tourist spending 10% more than last August

Tourists spent 10% more than last August

Total tourist spending in Spain by international visitors in August reached a staggering 11,342 million euros. This represents an increase of 10.3% when compared to the same month last year.

The average spend per tourist also increased with visitors spending 1,088 euros each during their trip, up 6.1% from last year. The average daily spend per visitor also increased to 126 euros, up 7.6%.

However, the average duration of stay dropped by 0.1 days to 8.6 days, when compared to August 2016, according to figures released by the INE.

From the start of the year to the end of August international tourists have spent a massive 60,461 million euros! This is an increase in total tourist expenditure of 14.2% when compared to the same period last year.

Issuing Countries

The main issuing country in terms of tourist spending weight was, of course, the UK which accounted for 21.3% of the total. German tourists accounted for 13.2% of the total, while French visitors contributed 12.7% of the total. For the British, this was an increase of 6.3% compared to last year, despite Brexit worries. German spending increased by 3.1%, and French spending increased 4.1%.

In the first eight months of this year, the UK is the country with the highest accumulated expenditure making up 20.4% of the total, followed by Germany (13.9%) and France (8.6%).

Primary Destination (autonomous communities)

The Balearic Islands took the lion’s share of tourist spending in August with 24.5% of the total. Catalonia took 23.3% while Andalucía received 13.7% of the total spend. For the Balearic Islands this represents an increase of 10.9%, when compared to August 2016. The variation in Catalonia was 9.9%, while in Andalucía spending increased by 8.6%.

In the first eight months of 2017, the autonomous communities with the highest accumulated expenditure are Catalonia (with 22.5% of the total), the Canary Islands (18.1%) and the Balearic Islands (18.0%).

 

Spanish Property Prices Increased in Third Quarter

Spanish Property Prices Up in Q3
Spanish Property Prices Up in Q3

Used property prices continues to rise

The price of housing in Spain increased by 2.3% during the third quarter of 2017. This leads to the average for a square metre rising to 1,590 euros, according to the latest price index from idealista. The annual variation is +3.7%.

Fernando Encinar, head of idealist studies, says “The real estate market, both for sale and for rent, is in keeping with expectations. The fall in the unemployment rate and the economic improvement are directly related to the rise in prices within the sector. Optimism has returned to the market and prices are rising all over the country. However, as we have been warning for more than a year, normalization is occurring at two speeds, and while there are already municipalities like Palma that see higher prices, in other locations they are still falling.”

“The forecast for the coming months is a continuation of current trends. 2017 will close with more sales than in the previous year and an increase in the number of new mortgages. It is also expected that new building visas will increase because there are large areas and urban areas with very limited or non-existent stock.”

Despite the continuing price increase, Encinar does not expect to see a bubble saying: “We are still far from the levels reached in 2007 and financial institutions are now more cautious in facilitating credit.”

Autonomous Communities

All communities saw prices rise in Q3, although the differing rates of increase are remarkable. The largest increase was in the Balearic Islands where prices increased by 7.6%. It is also worth mentioning that on the annual variation, prices on the Balearic Islands are up 23.2%. Catalonia was next with an increase of 3.4%, with Madrid (+2.7%) and Murcia (+2.4%) coming next. Prices in Andalucia increased by 1.5% compared to the previous quarter and by 4.1% when compared to 2016.

The smallest increase was in Galicia and Asturias at only 0.1%, a mile away from the increases in the islands.

The most expensive community remains as Euskadi with an average cost per square metre of 2,030 euros. The cheapest community was Castilla La Mancha with an average price of 934 euros/m².

Provinces

Prices increased in 42 provinces during the third quarter with the Balearic Islands topping the table as prices increased 7.6%. Lleida was next with prices going up by 5.4%, followed by Barcelona (4.4%) and Castellón (3.5%). In Málaga, prices increased by 2.6% compared to the previous quarter and by 8.3% when compared to the previous year.

However, prices fell in Zamora (-1.2%), Ourense (-0.8%), Seville and Salamanca (-0.7% in both cases).

The ranking of provinces by price sees the Basque provinces of Guipúzcoa and Vizcaya at the top of the table, with average prices of 2,754 euros/m² and 2,580 euros/m², respectively. Toledo is the most economical province (832 euros/m2²), with Ávila (836 euros/m²) and Ciudad Real (875 euros/m²) following.

Capitals

The highest increase amongst Spain’s provincial capitals was in Palma de Mallorca where prices increased 7.3% during Q3. Notably, this makes Palma the first capital to reach and exceed the price levels of 2007. Lleida saw prices increase by 5.3%, with Malaga close behind with prices going up 5.2%. Girona (4.9%) and Pamplona (3.9%) also saw significant increases.

In contrast, Zamora saw the largest fall in prices with owners lowering their expectations by 2.3%. Next was Teruel (-2%), and Soria and Cuenca (-1.8% in both cases).