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Passenger Numbers Break Records at Málaga Airport

Passenger Numbers Break Records at Málaga Airport
August 4th was Busiest Day Ever at Málaga Airport

Records broken at Málaga Airport in August

Over the first eight months of this year, Malaga Airport has handled a massive 13 million passengers.

This represents an increase of 1.3% when compared to the same period last year. The increase was driven largely by significant growth in domestic traffic which recorded double-digit growth.

The number of flights also increased with 2% more landings and take-offs this year.

The bulk of passengers travelled on commercial flights (excluding executive aviation), adding up to 12,867,820 passengers. Of those, 1.8 million arrived from or went to other Spanish airports. Meanwhile, 11 million passengers travelled outside of Spain.

The domestic market saw significant growth, increasing by 11.7% from January to September.

In terms of international traffic, the UK remained the main source/destination with 3.9 million passengers travelling through Malaga airport. Next were the Germans (1,050,831), French (789,088) and the Dutch (756,431).

Considering the increase in travellers, the most dynamic markets were the Italian and the Gallic, with a rise of 10.1% and 7.6%, respectively.

Regarding flight operations, Malaga-Costa del Sol Airport handled 95,593 flights between January and August, of which 92,055 were commercial, 2.5% more than during the same period of 2017.

Monthly Data

If we look only at the month of August, the number of passengers that passed through the airport amounted to 2,118,619, while the number of operations totalled 15,340. Of the 2,111,353 users who travelled on commercial flights (excluding executive aviation), 281,346 had their origin or destination within Spain and 1,830,007, international.

Malaga-Costa del Sol Airport marked a significant milestone on August 4th, registering the most traffic in its history, reaching 564 take-offs and landings. This beat the record achieved on July 28th, when the airport attended 560 flights.

August 4th was also the same day that the airport handled the largest number of passengers, with 77,514 passing through.

 

Home Sales Increased in July

July saw a 16.2% increase in home sales

July saw a 16.2% increase in home sales

The total number of properties transferred in the property registers in Spain in July was 169,683. This represents an increase of 14.5% when compared to the same month in the previous year, according to the latest data released by the INE.

87.8% of the purchases in July relate to urban property, while the remaining 12.2% relate to rural property. In the case of urban properties, 58.7% refer to home purchases.

The number of rural property purchases increased by 8.3% in July, on the annual rate. Urban property sales increased by 14.3%. Within urban property sales, home sales recorded an annual increase of 16.2%.

Autonomous Communities

In July, the total number of transferred properties per 100,000 inhabitants reached its highest value in La Rioja (759), Aragón (645) and Valencia (611).

Navarra (25.5%), the Balearic Islands (24.9%) and Valencia (24.6%) registered the highest annual variation rates.

On the other hand, the Canary Islands (-6.3%), Aragón (5.0%) and La Rioja (6.9%) had the lowest annual rates.

Regarding the sale of registered homes, the communities with the highest number of transmissions per 100,000 inhabitants were Valencia (185), the Balearic Islands (172) and Madrid (137). In Andalucia, the number of home sales per 100,000 inhabitants was 132 (8,730 operations), representing an annual variation of +20.4%.

The communities with the highest annual increases in the number of home sales in July were Aragón (32.0%), Galicia (28.6%) and Castilla-La Mancha (27.1%).

On the other hand, La Rioja (-4.2%), the Canary Islands (-3.9%) and Cataluña (4.4%) registered the lowest annual variation rates in July.

 

Property Sees Ups and Downs in July

Property Sees Ups and Downs in July
Property Sees Ups and Downs in July

Despite an increase in sales, prices fell in July

July has given with one hand and taken with the other, as far as the property market is concerned.

According to the General College of Notaries, the number of property sales and the number of new mortgages increased, while the average price decreased.

In July, over 52,000 home purchases were recorded (52,014). This represents a 4% increase over the previous year, and mostly due to sales of second-hand property. Also in July, almost 25,000 new mortgages were approved for the purchase of housing, 11.1% more than in July 2017. In both cases, the figures are similar to the maximums of 2012.

As far as the sale of houses is concerned, the volume of operations in July is the fourth highest since the end of 2012, the point when tax relief for the acquisition of a house came to an end. June of this year marked the maximum since then, with more than 54,000 transactions. Incidentally, June 2017 also exceeded 54,000 sales. Following those two June’s is March of this year (2018), with more than 52,000 operations.

Mortgages have also manged to break records this year. In July, there were more new mortgages approved than any single month since December 2012.

Prices

But before everyone gets too excited, prices come along and ruin everything. Notaries confirm that the average price of a square metre of housing was 1,376 euros, in July, which represents a fall of 4.5% year-on-year. This is the largest single decrease in just over three years (there was no other similar price drop since the first half of 2015) and confirms the theory put forward by many that the housing market is slowing down.

Another variable that has fallen is the average amount of mortgages, despite an increase in volume. In July, the average mortgage was 0.5% lower than last year, at 139,100 euros. This is likely as a result of the price drop.

In recent weeks there have been several voices warning that the housing market could be close to a cycle change. The Economist newspaper assures us that it is a global trend that is being seen in major cities worldwide. The credit rating agency, S&P, believes that, in the case of Spain, the price slowdown comes on the back of a GDP slowdown and the Catalan political crisis.

Personally, I think there is trouble on the horizon. The Spanish property market appears to operate on a ten-year cycle, a decade of growth followed by a decade of price and sales falls. We are on year 11 following the crisis. Make what you will of that.

 

Property Prices Appear Stable in August

Property Prices Appear Stable in August
Property Prices Appear Stable in August

Monthly variations are getting smaller

Second hand property prices in Spain registered a slight increase in August, rising 0.4% to reach an average of 1,697 euros per square metre. Looking at the costs last August, the year-on-year increase is +9.2%, according to data from idealista.

Property prices appear to have stablilised following years of significant increases. We are still seeing ups and downs across the country but only very small variations month-to-month. This is not suggesting that prices have peaked and are about to fall nationally, rather that they were so low following the meltdown that significant gains were needed to restore prices to normal levels.

Autonomous Communities

The average price fell in six communities, with Navarra suffering the most as prices fell 1.2%. Other communities to suffer price drops were Extremadura (-0.7%) and Cantabria (-0.3%). On the other hand, the largest increase was seen in La Rioja where prices went up by 1.4%. Prices also increased in the Canary Islands (0.8%) and the Balearic Islands (0.7%).

Madrid remains as the most expensive community with an average price per squre metre of 2,934 euros. The next most expensive is the Balearic Islands where the average used property costs 2,686 euros/m², followed by Euskadi (2,543 euros/m²).

At the cheaper end of the table we find Extremadura (919 euros/m²), Castilla La Mancha (936 euros/m²) and Murcia (1,035 euros/m²).

In Andalucia, the cost of an average square metre increased by 0.3% compared to the previous month, to reach 1,507 euros.

Provinces

28 provinces saw prices rise in August, when compared to the previous month. Las Palmas experienced the greatest increase (1.8%), followed by Tarragona (1.7%), Lleida (1.6%) and La Rioja (1.4%). The biggest falls, however, occurred in Palencia where owners ask for 1.9% less for their homes. Prices also fell in Teruel (-1.4%) and Navarra (-1.2%).

The ranking of the most expensive provinces is led by Madrid with 2,934 euros/m². In second place is Barcelona (2,823 euros/m²) and then Guipúzcoa (2,802 euros/m²).

Ávila is the most economical province with a price of 796 euros per square meter. Other more economical provinces include Toledo (823 euros/m²) and Ciudad Real (871 euros/m²).

The average cost per square metre in the province of Málaga increased by 0.8% in August to reach 2,069 euros.

Capitals

During the month of August 35 capitals saw used-property prices increase. The most pronounced rise is that experienced by Las Palmas de Gran Canaria, where the expectations of owners grew by 3.2%. In Lleida, the increase was 2.7%, while in Granada it was 2.6%. In Madrid, prices increased by 0.8% and in Barcelona by 0.1%. Santa Cruz de Tenerife, on the other hand, marked the biggest drop this month (-4%), followed by Soria (-1.7%) and Huelva (-1.6%).

Barcelona is still the most expensive city in Spain, with with an average price of 4,392 euros/m², followed by San Sebastián (4,306 euros/m²) and Madrid (3,829 euros/m²). Avila, on the other hand, is the most economical, with an average square metre costing 933 euros, followed by Lleida (1,006 euros/m²) and Huelva (1,046 euros/m²).

In the city of Málaga, the average cost increased by 1.3% in August, reaching 2,213 euros per square metre. This is only 12.2% lower than the maximum of 2,512 euros, which was seen in the second quarter of 2007.

 

Spain Received 10 Million Tourists in July

Spanish streets were filled in July
Spanish streets were filled with tourists in July

Spanish streets were filled with tourists in July

Despite a handful of scaremongering articles suggesting Spain’s tourism market is under threat, Spain dealt with 10 million international tourists in July, 4.9% less than in the same month last year, according to data from the INE.

This is not a huge drop and is easily explained. For a few years, following terror attacks, Turkey, Tunisia and Egypt have all been off the holiday market and some travellers who would usually visit those countries chose Spain instead. So, we are not 4.9% down on “normal” numbers. We are down on the numbers which included extra people. Now those countries are once again open to tourists it is expected that Spain should receive fewer visitors. Another obvious reason is the weather across northern Europe, including the UK, was much hotter this year that it has been recently. This pushed many people to stay in their own countries for their summer holidays.

Emitting Countries

The UK was the main emitting country in July, with almost 2.2 million Brits choosing Spain. This represents a massive 22% of the total international visitors, but a decrease of 5.6% compared to July last year.

The number of French and German tourists also slowed this year. Around 1.4 million French visited (11.4% less on the annual rate), and almost 1.3 million Germans (6.2% less).

Among the other main emitting countries, it is worth mentioning the annual growth of tourists visiting from the United States (+12.7%) and Switzerland (+0.2%).

Autonomous Communities

The Balearic Islands attracted the bulk of visitors in July, with 24.4% of the total choosing the islands. They are followed by Catalonia (23.9%) and Andalusia (13.3%).

More than 2.4 million people visited the Balearic Islands, 2.2% less than last July. The main countries of residence of tourists visiting this community are the United Kingdom (with 28.1% of the total) and Germany (26.6%).

The number of tourists visiting Catalonia decreases by 6.7% and was close to 2.4 million. 21.6% came from France and 10.8% from the rest of the world.

The third most popular destination community by number of tourists was Andalusia, with more than 1.3 million tourists, an annual fall of 2.2%. The United Kingdom was the main country of origin (with 27.3% of the total), followed by the Nordic countries (14.3%).

In the rest of the communities, the number of tourists increased by 6.7% in Madrid. On the other hand, visitor numbers dropped 5.6% in the Canary Islands and 6.9% in Valencia.

Year to Date

In the first seven months of 2018, the number of tourists visiting Spain has increased by 0.3% to stand at 47.1 million. So, despite falls in July, we are still up for the year.

The main emitting countries so far this year are the UK with more than 10.6 million visitors. This shows a decrease of 2.8% when compared to the first seven months of 2017. Almost 6.5 million Germans have visited so far this year, representing a fall of 5.8%. 6.2 million French have visited since January, representing a fall of 1.7%.

Cumulatively, over the first seven months of 2018 the communities that received the most tourists were Catalonia (with more than 11 million and a decrease of 2.2% with respect to the same period of 2017), the Canary Islands (with more than 7.9 million and a decrease of 2.6%) and the Balearic Islands (with close to 7.9 million, 0.4% less).