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

Increase in Home Mortgages in November

21,698 new home loans taken in November
21,698 new home mortgages taken in November

21,698 new home loans taken in November

The number of new mortgage loans taken out in November 2018 was 29,709, representing a fall of 1.6% year-on-year. The average amount of capital loaned was €167,486, reflecting an annual decrease of 4.4%.

In November, the number of new mortgage loans taken for the acquisition of a property increased by 2.6% year-on-year, to reach 23,181 loans. This was due in part to the increase in loans for the purchase of a residential property which increased by 3.5% to reach 21,698 loans, and also the decrease in loans for other types of property (-8.5%).

In the case of housing, the average capital borrowed was €133,812, representing an annual decrease of 1.8%.

The average amount of the mortgages taken for the purchase of other types of property in November was €136,954. This represents a 2.6% fall year-on-year.

The number of new loans taken to finance construction projects showed an annual decrease of 1.2%, standing at 596 operations, according to figures from the General Council of Notaries. The average amount of these loans reached €523,205, reflecting a year-on-year fall of 8%. The average amount of loans taken for the construction of a residential property fell by 18.7% to €258,880. In this case, there were 462 operations.

The percentage of home purchases which were financed through a mortgage stood at 45.9%. Additionally, in this type of purchase with financing, the average amount of the loan was 76.7% of the property value.

 

Housing Sales up 2.8% in November

42,150 homes were sold in November
42,150 homes were sold in November

42,150 homes were sold in November

According to the latest figures from the INE, there was 85,348 property sales in November, 4% more than in the same month of 2017. Of those, 42,150 related to the sale/purchase of housing.

86.5% of those sales were for urban properties, with 13.5% being rustic. In the case of urban properties, 57.1% were for housing purchases. In terms of buying and selling homes in Spain, November saw an annual increase of 2.8%. However, compared to October, there was a monthly fall of -3.2% in housing sales.

19.1% of the homes sold in November were new properties, with 80.9% being second-hand. These figures represent an increase in new home sales of 7.9%, and an increase of 1.6% for second-hand housing, when compared to November 2017. When compared to October, new home sales saw a slight increase of 0.9%, while sales of second-hand housing saw a monthly fall of -4.1%.

Autonomous Communities

In November, the total number of property transfers registered per 100,000 inhabitants reached its highest values in La Rioja (723), Castilla y León (718) and Valencia (610).

Madrid (21.7%), Cantabria (19.6%) and La Rioja (19.4%) saw the highest annual variation rates.

The lowest annual variations were seen in Aragón (-11.7%), the Balearic Islands (-6.0%) and Extremadura (-4.4%).

Looking only at sales of residential properties, the communities with the highest number of transactions per 100,000 inhabitants are Valencia (168), La Rioja (144) and Cantabria (128). In Andalucia, there were 7,950 sales/purchases, or 121 per 100,000 inhabitants.

The communities with the highest annual increases in the number of home sales in November are Cantabria (30.3%), La Rioja (28.8%) and Castilla-La Mancha (26.6%).

The Balearic Islands (-7.2%), Andalucía (-5.9%) and Extremadura (-5.0%) registered the lowest annual variation rates in November.

Housing Sales up 2.8% in November

Purchases/sales of housing by Autonomous Community

Rental Price Growth Slowed in 2018

Rental prices fell by 0.6% in Q4
Rental prices fell by 0.6% in Q4

Rental prices fell by 0.6% in Q4

The price increases of rental housing slowed in 2018 and ended the year with an interannual increase of 9.3%. Compare this to growth of 18.4% in 2017. This leaves the average square metre at 10.6 euros per month. The slowdown was caused in part by a fall in prices during Q4 when the average cost fell by 0.6%.

Head of studies at idealista, Fernando Encinar, says that “the numbers show what we have been saying: there is no rental bubble. Prices have risen across the country in 2018 but this growth is slower than in previous years. Additionally, the larger rental markets, like Barcelona and Madrid, usually set the trend which will be seen later in the rest of the country. In Barcelona, rental prices have fallen for the second consecutive year and in Madrid they have stabilised with a small annual increase of 4%, although the final months of the year saw falls.”

“In some areas there may still be tension in the prices, but it will be based on high demand that clashes with lower availability. But in general, we expect a moderation in prices.”

Autonomous Communities

All the communities registered higher prices than they did a year ago, except for Extremadura (-0.1%). The largest increase was seen in La Rioja, where owners are asking for 10.5% more than they did last year. Other significant increases were seen in Navarra (9.5%) and Cantabria (8.8%). Catalonia experienced the smallest increase with prices rising just 1.3%. Other communities to see rises below 5% were the Balearic Islands (2.9%), Murcia (4.2%) and Castilla y León (4.9%).

Madrid is the most expensive autonomy for rentals with an average cost per square metre of 15.1 euros per month. Catalonia follows with 14.6 euros p/m² per month. Following are the Balearic Islands and Euskadi, with averages of 12.9 euros and 11.8 euros p/m² per month, respectively.

The cheapest communities for monthly rental costs are Extremadura (4.1 euros p/m²), Castilla La Mancha (5.1 euros p/m²) and La Rioja (5.7 euros p/m²).

In Andalucia, rental costs ended 2018 with an annual increase of 8.5%. This puts the average cost per square metre at 8 euros per month.

Provinces

Only four provinces saw their rental costs fall in 2018. The most significant fall was seen in Tarragona, where prices fell by 2.7%. This was followed by falls in Badajoz (-2.2%), Ciudad Real (-0.9%) and Barcelona (-0.2%). The biggest increases were seen in Santa Cruz de Tenerife (14.5%), Burgos (13.7%) and Toledo (13.7%).

Barcelona is the most expensive province with an average cost per month of 15.8 euros p/m². This was followed by Madrid with 15.1 euros p/m², Guipúzcoa (13.9 euros p/m²) and Baleares (12.9 euros p/m²). Jaén and Cáceres are the cheapest provinces (3.9 euros p/m² and 4 euros p/m², respectively), followed by Ávila (4.2 euros p/m²) and Badajoz (4.2 euros p/m²).

The province of Malaga ended the year with a slight year-on-year increase of 4.3%, in spite of a monthly fall in December of -0.2%.

 

Housing Finished 2018 With a Price Increase

December saw prices increase 20.73% in Madrid
December saw prices increase 20.73% in Madrid

December saw prices increase 20.73% in Madrid

The number of purchases/sales of homes in Spain reached 47,254 in November, according to the General Council of Notaries. This represents an annual decrease of 3.6%.

The sale of flats showed a significant annual fall dropping 6.5% year-on-year. This was due to falls in sales of both new property (-7.1%) and also second-hand properties (-5.5%). Only single-family properties showed an interannual increase in sales.

In terms of the average price, the average square metre purchased in November reached €1,359, reflecting a slight increase of 0.2% year-on-year. This slight increase was due to an increase in the costs of both single-family homes (+3%) and that of apartments (+0.3%).

The average price per square metre of second-hand properties stood at €1,479 (-1.5% year-on-year), while the price of new homes increased 14.6% to reach €2,092 per square metre.

December

According to Pisos.com, the average cost per square metre of second-hand housing in Spain in December was €1,672. This represents an annual increase of 6.43%.

The housing market has maintained its upward trend through 2018 but, according to Ferran Font, director of studies at pisos.com, the market could be mixed in 2019 given that in certain areas “a ceiling has been reached.”

Font says that in 2019, “we will have to see how the market responds to the introduction of new regulations on rental properties and also mortgages, while also closely monitoring possible rises in interest rates by the ECB.”

Autonomous Communities

Madrid (20.73%), the Balearic Islands (20.19%) and the Canary Islands (19.78%) were the communities that showed the biggest increases in housing prices, when compared to December 2017. The most striking decreases were seen in Murcia (-7.09%), La Rioja (-6.27%) and Extremadura (-3.72%).

The biggest monthly increase was seen in the Canary Islands (2.73%), while the biggest fall was in the Balearic Islands (-3.61%). However, the Balearic Islands were the most expensive in December with an average cost per square metre of €2,859, while the cheapest was Castilla La Mancha at €877p/m².

In Andalucia, the average price stood at €1,614 representing an increase of 11.39%.

Provinces

The largest interannual increases were seen in Barcelona (22.25%), Madrid (20.73%) and the Balearic Islands (20.19%). The biggest falls were seen in Segovia (-7.40%), Murcia (- 7.09%) and La Rioja (-6.27%). When compared to November, the most striking rise was Guipúzcoa (2.08%), while the biggest fall was in Cuenca (-7.35%). The most expensive province in December was Guipúzcoa (€3,220 p/m²) and the cheapest was Cuenca (€630 p/m²).

Provincial Capitals

Compared to December 2017, the capitals that saw the largest increases were Palma de Mallorca (27.15%), Las Palmas de Gran Canaria (25.49%) and Donostia-San Sebastián (23.89%). The biggest falls were Logroño (-5.23%), Segovia (-3.87%) and Castellón de la Plana (-2.82%). The largest increase compared to November was in Madrid (4.86%) while the largest fall was in Logroño (-6.29%). The most expensive capital was Barcelona (€4,788 p/m²) and the most affordable Avila (€1,004 p/m²).

Luxury Property Prices up 2% in 2018

Luxury Property Prices up 2% in 2018
Luxury Property Prices up 2% in 2018

Luxury property is still in demand across Spain

Luxury housing (over 500,000 euros) has continued to rise in price throughout 2018 but has slowed down registering only a 2% year-on-year increase.

The average price of luxury property now stands at 6,800 euros/m², up from 6,600 euros/m² registered at the end of 2017. The largest increases occurred in the cities of Madrid, San Sebastian and Palma. There were also significant increases in areas of high tourist wealth such as the Andalusian Costa del Sol, the Valencian coast, the Balearic Islands and the Canary Islands.

There were some areas between Barcelona and the Catalan Costa Brava where the luxury market fell, in some cases up to 20% year-on-year during the first half of the year, although some then experienced a notable upturn during the second half of the year.

Most in demand in the luxury sector are those properties up to three million euros, and with an area between 150m² and 500m².

The average time to sell a luxury property during 2018 was 5.5 months nationally (8.5% faster than in 2017) and only 2.5 months in the areas of greater tourist demand.

By nationality, the French were the fastest buyers of luxury properties with an average of two months, followed by the British and Germans (3.5 months), Belgian (4 months), Scandinavian and Russian (5.5 months), Spanish and Italians (6 months), and Chinese (9 months). In Madrid, the presence of the Latin American market was remarkable with Venezuelans, Mexicans and Colombians at the head, whose average time taken to purchase a luxury property was around 4 months.

“This year has seen the real estate sector achieve optimal values and the market of supply and demand has balanced, resulting in the stabilization of prices,” says Emmanuel Virgoulay, founding partner of Barnes Spain.

“It is clear that this is a market that moves at two speeds: in the areas of more international and tourist demand, those properties with prices according to the market fly, while those that do not have a great location or are overpriced spend much more time on the market. Catalonia occupies a separate chapter, because during the first half of the year the market suffered the consequences of political instability “.