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

Cost of Renting Reaches Historical Highs

admin | 2nd September 2022 | Andalucía, Costa del Sol, Málaga, Marbella, News, Prices, Property Market, Rental Property, Renting

Renting is more expensive than ever before!

The price of rental housing in Spain increased by 0.9% in July, when compared to the previous month. When compared to the same month in the previous year, rental prices have increased 7.4%. This brings the average cost per square metre to €11.21. The average cost exceeded €10 per square metre some 33 months ago, and this latest increase brings the price to the highest ever recorded.

“Rental prices reached the historical maximum level, with an upward trend. It has been recovering ground for nine consecutive months – it came out of the negative period of 2021 – and presents the biggest increases since records exist. It is a moment that marks a milestone in the evolution of this market. In addition, the increases in some hot spots of the Valencian autonomy, which also presents unprecedented increases, as well as in Catalonia, Madrid and Andalusia, are very significant. The main cause that pushes the price up is the very important reduction in supply that has already been detected since the beginning of the year and the incessant increase in inflation that influences the price of homes that come onto the market“, explained María Matos, director of Studies at Fotocasa.

Increases in All Autonomous Communities

If we look at rental prices compared to those of a year ago, we see that all the communities saw an increase in the year-on-year price in July. In six communities we saw double-digit increases, specifically in the Valencian Community it exceeded 15% year-on-year. The order of the areas of Spain with interannual increases is: Valencia (17.5%), the Balearic Islands (14.5%), Cantabria (14.0%), Region of Murcia (13.9%), the Canary Islands (12.7%), Madrid (11.2%), Castilla y León (9.4%), La Rioja (8.8%), Extremadura (8.6%), Galicia (7.9%), Castilla- La Mancha (7.8%), Navarra (7.8%), Catalonia (7.3%), Andalusia (5.0%), Asturias (3.7%), Aragon (3.4%), and the Basque Country (2.7%).

In July 2022, seven communities exceed national average prices per square meter per month. The areas of Spain with the highest prices in the entire historical series are the Balearic Islands (€13.20/m² per month), Cantabria (€11.18/m² per month), the Canary Islands (€10.83/m² per month), Navarra (€10.36/m² per month), Region of Murcia (€8.51/m² per month), Castilla y León (€8.00/m² per month) and Extremadura (€6.21/m² per month).

Regarding the ranking of Autonomous Communities by the price to rent a home in Spain, Madrid and Catalonia are in the first places, with prices of €15.39/m² per month and €14.79/m² per month, respectively. They are followed by six more communities with prices above €10.00/m² per month and they are: the Basque Country with €13.51/m² per month, the Balearic Islands with €13.20/m² per month, the Canary Islands with €10.83/m² per month, Navarra with €10.36/m² per month and Valencia with €10.00/m² per month.

Provinces of Spain

Almost all provinces saw an increase in the year-on-year price of rental housing in July 2022, except Guadalajara. Increases of more than 10% occurred in 20 provinces and specifically, three of them experienced increases of more than 20%.

The order of the provinces with year-on-year increases of more than 10% are: Girona (20.3%), Huelva (20.3%), Málaga (20.2%), Alicante (18.8%), Cuenca (15.8%), Valencia (15.6%), Balearic Islands (14.5%), Las Palmas (14.3%), Cantabria (14.0%), Lugo (13.9%), Murcia (13 .9%), Cádiz (12.4%), Badajoz (12.2%), Huesca (11.8%), Madrid (11.2%), Castellón (10.8%), Lleida (10.7%), Tarragona (10.5%), Palencia (10.3%) and Segovia (10.1%).

As for prices, 14 provinces exceed 10.00 euros per square meter per month for rental housing. The three most expensive provinces are Barcelona with €15.77/m² per month, followed by Gipuzkoa with €15.52/m² per month and Madrid with €15.39/m² per month.

Spanish Property Sales Continue to Accelerate

admin | 17th August 2022 | Andalucía, Buying, Costa del Sol, Marbella, News, Prices, Property For Sale, Property Market, Spain, Statistics/Figures

Prices are still rising, reaching 1,960€/m2 in June

Prices rise again, reaching 1,960€/m² in June

The number of Spanish property transfers recorded in the public register in June reached 196,206, 0.9% more than in the same month last year.

In the case of property sales, the number was 108,085, an annual increase of 7.1%. 87.6% of the purchases registered in June correspond to urban property and 12.4% were rustic. In the case of urban sales, 61.3% were residential properties.

The number of sales of rustic properties decreased 11.3% in the annual rate in June, while that of urban properties increased 10.3%. Within the latter, home sales registered an annual increase of 18.8%.

16.9% of the homes transferred by sale in June are new property and 83.1% used. The number of operations on new homes rose by 7.1% compared to June 2021 and that of used homes by 21.5%.

Sales by Autonomous Communities

In the month of June, the total number of Spanish property transfers registered in the property registries per 100,000 inhabitants reached its highest values in Castilla y León (823), Aragón (802) and La Rioja (781).

The Balearic Islands (18.0%), the Canary Islands (15.2%) and Cantabria (15.1%) registered the highest annual variation rates, according to data released by the INE.

The Community of Madrid (–11.6%), the Basque Country (–7.9%) and the Community of Navarra (–7.8%) presented the lowest annual rates.

In terms of registered home sales, the communities with the highest number of transfers per 100,000 inhabitants are Valencia (222), Andalucía (185) and Murcia (184).

The autonomous communities that presented the greatest annual increases in the number of home sales in June were the Canary Islands (42.5%), Asturias (38.3%) and Cantabria (37.3%).

The only community with a negative variation rate is the community of Madrid (-6.3%).

Property Prices

The monthly variation in the price of second-hand housing rose by 1.2% and its interannual variation rose by 3.5%, placing the average price at 1,960 euros/m² in July, according to data from Fotocasa. This latest year-on-year value is the twenty-first chain increase (since November 2020) and the highest increase (3.5%) detected in this entire period.

“The demand to Spanish property continues, at the moment very strong, while available stock has been gradually reducing after the great year in sales seen in 2021. This strong demand for housing, together with the reduction in stock, is pushing prices up. We have seen 21 consecutive months with year-on-year increases in the price of second-hand housing and, in fact, the increase in the month of July is the most pronounced in this period of time. It is true that the demand for housing to buy may begin to be reduced after the recent rise in interest rates and the consequent rise in mortgage prices and this may mean that prices do not continue to grow as much, since demand will be somewhat more restrained. This can mean that the price variations of some communities such as Madrid, the Balearic Islands or Andalusia, which are currently growing above 5%, begin to moderate and prices do not increase much more“, explained María Matos, Director of Studies and Spokesperson for Fotocasa.

Looking deeper at the prices of housing for sale compared to those of a year ago, we see that 12 communities increased the year-on-year price in July. In four communities prices exceeded 5% growth, specifically in the Balearic Islands prices increased 8.7%, and 6.5% in Madrid, in Navarra 5.8% and in Valencia 5.2%. They are followed by the communities of Andalusia with 3.9%, the Canary Islands with 3.8%, Catalonia with 2.9%, Aragón with 2.5%, Region of Murcia with 2.4%, La Rioja with 1.5%, Cantabria with 0.6% and the Basque Country with 0.5%. On the other hand, interannual decreases in July were detected in Castilla y León with -1.8%, Extremadura with -1.4%, Asturias with -0.8%, Castilla-La Mancha with -0.6% and Galicia with -0.4%.

Prices in Autonomous Communities

Regarding the ranking of Autonomous Communities by average prices per square metre, the most expensive second-hand housing prices in Spain are in Madrid and the Balearic Islands, with prices of 3,320 euros/m² and 3,094 euros/m², respectively. They are followed by the Basque Country with 2,897 euros/m², Catalonia with 2,617 euros/m², the Canary Islands with 1,848 euros/m², Cantabria with 1,755 euros/m², Andalusia with 1,749 euros/m², Navarra with 1,712 euros/m², Aragon with 1,629 euros. /m², Galicia with 1,607 euros/m², Asturias with 1,572 euros/m², Valencia with 1,499 euros/m², La Rioja with 1,462 euros/m², Castilla y León with 1,413 euros/m², Region of Murcia with 1,151 euros/m², Extremadura with 1,132 euros/m² and Castilla-La Mancha with 1,117 euros/m².

Modelo 720 Fines Declared Null and Void

admin | 1st August 2022 | Costa del Sol, Málaga, News, Property Tax, Spain, Statistics/Figures

Modelo 720 Fines Declared Null and Void

The draconian fines which were imposed under the Modelo 720 Assets Declaration have been declared null and void opening the doors to claiming the money back. This is some welcome news for foreign residents and investors.

Under Spain’s 720 tax model, which was introduced back in 2012, foreign residents had to declare the assets they own in other countries to the Spanish tax authorities. This was, ostensibly, to combat tax evasion, money laundering, and the funding of terrorism, but many people suggested it was simply an attack on expats and appeared to be nothing more than a shameless shakedown.

“Null and Void”

Those with assets outside of Spain totalling 50,000€ or more had to declare this to the tax office but it didn’t work. Many investors simply stayed out of Spain and many that were already there simply left, leaving the country poorer. Ignoring or incorrectly filing under the Modelo 720 opened you up to massive fines sometimes approaching the value of the assets; possibly huge sums.

The judgement from the Spanish court follows an earlier judgement from the European Court of Justice (ECJ) ruling back in January which said that aspects of the 720 tax model declaration were illegal. The Spanish Supreme Court has now declared all related fines given out as null and void.

“Therefore, the punitive measures are recognised as null and void, including those before the sentence of the ECJ on the 27th of January 2022,” explains the ruling.

The court judgement does not completely remove the Modelo 720 although it does declare the disproportionately high fines for non-compliance to be void. Additionally, Spanish tax law did not provide for a limitation period for the tax liability thereby violating the principles of the free movement of capital. A limitation period of 4 years has now been introduced.

In practice this means you still have to declare your assets but failure to do so or errors in your submission will no longer incur huge fines.

Rental Price Rises 2.40% in First Half

admin | 22nd July 2022 | Andalucía, Costa del Sol, Marbella, News, Prices, Property Market, Rental Property, Renting, Spain

Average cost of renting in Spain was €10.22 in June

Average rental cost in Spain was €10.22 in June

The average cost of renting a home in Spain was 10.22 euros per square meter at the end of the first half of the year. This figure marked a monthly decrease of -0.10% and a quarterly increase of 0.17%, half-yearly of 2.40% and interannual of 6.13%.

According to Ferran Font, Director of Studies at piso.com, “rental income is showing its strength at a time when access to housing is difficult due to rising inflation.” Font suggested that one of the reasons that explains why it is now more expensive to be a tenant than a year ago is that “housing for sale has also become more expensive, as well as mortgages, and that means the plans of many potential buyers are delayed, which puts pressure on the rental market.” Font indicates that “tenant turnover is not renewed, which limits the available supply.” In addition, he points out that “the longer the economic uncertainty lasts, the more prices will skyrocket“.

On the other hand, Font believes that “it is very likely that the limits on rents that the Government plans to establish within the stressed areas to alleviate the salary effort will act as a deterrent for the owners of these properties, who may withdraw their apartment after assessing that it is no longer worth it“. In this sense, Font exposes the need to “provide greater incentives and reinforce legal security to bring out that unproductive housing that is not rented due to lack of stability and for fear of a costly and almost endless legal process.”

Barcelona The Most Expensive Capital

The half-yearly data revealed that the most expensive regions to rent a home in June 2022 were Madrid (€13.38 p/m²), the Balearic Islands (€12.09 p/m²) and Catalonia (€11.78 p/m²), while the cheapest rents were in Castilla y León (€4.73 p/m²), Extremadura (€5.28 p/m²) and Castilla-La Mancha (€5.46 p/m²).

In the first half of the year, the most significant increase took place in Madrid (7.92%). The greatest adjustment occurred in Navarra (-8.16%). Compared to last year, Catalonia (11.10%) was the one that increased the most and Navarra (-9.33%) the one that fell the most.

In the classification of provinces by the cost of renting, in June 2022 the first position went to Madrid, with 13.38 euros per square meter. It was followed by Barcelona (€12.89 p/m²) and the Balearic Islands (€12.09 p/m²). On the opposite side, Cuenca closed the classification with 3.15 euros per square meter. Other economic provinces were Ávila (€3.32 p/m²) and Ciudad Real (€3.65 p/m²). The province that made its rents more expensive in the first semester was Cáceres (13.24%), while the one that made them cheaper was Guipúzcoa (-8.94%). From one year to another, the highest increase registered was that of Huelva (22.80%). The income that adjusted the most was that of Badajoz (-17.56%).

Regarding provincial capitals, Barcelona was the most expensive for renting a home with a price per square meter of 17.77 euros. It was followed by Madrid (€16.69 p/m²) and Donostia-San Sebastián (€16.14 p/m²). On the contrary, Zamora was the cheapest with 5.76 euros per square meter. Other economic provincial capitals were Ourense (€6.02 p/m²) and Ciudad Real (€6.23 p/m²). Zamora (15.43%) led the monthly increases, while Seville (-2.76%) was the capital that devalued the most in this period. Compared to June 2021, Pontevedra (18.39%) led the increases. The most striking cut was thrown by Ourense (-4.81%).

House Prices Up in Second Quarter

admin | 12th July 2022 | Andalucía, Costa del Sol, Marbella, News, Prices, Property For Sale, Property Market, Statistics/Figures

Average prices reached €1,936 p/m2 in Q2

Average prices reached €1,936 p/m² in Q2

The price of second-hand homes for sale in Spain increased by 1.2% in the second quarter of 2022. This is a year-on-year increase of 2.8%, bringing the average price per square metre to 1,936 euros. This increase is also the first quarterly increase since the fall seen in Q2 of 2021.

“The trend in house prices is rising in general terms, but at a moderate pace. The demand to buy continues to be very strong and the offer is gradually reducing, these are the engines that drive prices up. However, the vast majority of autonomies are 34% below the maximum price reached during the bubble. So we still oscillate between relatively reasonable prices. Although there is one exception: the Balearic Islands currently have the maximum price of housing registered in its entire historical series, it is the only autonomous community to exceed the levels of the 2007 bubble, and the situation is alarming since it increases the difficulties of access to property. The rise in interest rates in July will very likely curb the demand for housing by making mortgage loans more expensive, and with a more moderate demand, prices may stabilize in the medium term“, explained María Matos, Director of Studios for Fotocasa.

Prices by Autonomous Communities

14 Autonomous Communities saw the price of homes for sale rise and it was the Balearic Islands that once again headed the ranking with a 5.4% increase; the largest quarterly increase detected among all the Spanish communities in the last twelve months. They are followed by Madrid (2.3%), Castilla-La Mancha (2.0%), Region of Murcia (1.9%), the Canary Islands (1.5%), Valencia (1.5%), Extremadura (1.0%), Aragon (0.8%), Cantabria (0.8%), Asturias (0.6%), Catalonia (0.5%), Andalusia (0.5%), Navarra (0.5%) and the Basque Country (0.3%). However, the average prices of homes in Castilla y León (-1.1%), La Rioja (-0.8%) and Galicia (-0.6%), are cheaper in June than three months ago (March 2022).

Regarding the ranking of prices by communities, Madrid is the most expensive, paying about 3,289 euros per square meter. It is followed by the communities of the Balearic Islands (3,070 euros/m²), the Basque Country (2,893 euros/m²), Catalonia (2,590 euros/m²), the Canary Islands (1,800 euros/m²), Cantabria (1,761 euros/m²), Andalusia (1,727 euros/m²), Navarra (1,682 euros/m²), Aragon (1,611 euros/m²), Galicia (1,599 euros/m²), Asturias (1,585 euros/m²), Valencian Community (1,472 euros/m²), La Rioja (1,437 euros /m²), Castilla y León (1,410 euros/m²), Extremadura (1,148 euros/m²), Region of Murcia (1,144 euros/m²) and Castilla-La Mancha (1,120 euros/m²).

Prices by Province

Data from Fotocasa shows that in the second quarter of 2022 the price of homes for sale rose in 34 of the 50 provinces of Spain. The quarterly increases range from 7.2% in Toledo to 0.2% in Ávila. On the other hand, the province with the most pronounced decrease is Zamora, which has seen its value fall by -3.4% in June compared to March 2022. It is followed by Salamanca (-2.6%) and Lugo (-2 %), among others.

The only province that has so far reached its maximum value in 2022 since the so-called real estate bubble is the Balearic Islands, reaching 3,070 euros per square meter in June. Taking into account the ranking of prices by province, Gipuzkoa, Madrid and the Balearic Islands are the only ones that exceed the barrier of 3,000 euros, specifically Madrid pays 3,289 euros, Gipuzkoa 3,174 euros and 3,070 euros per square meter for the Balearic Islands.

Only five provinces saw the price of housing between 2,000 and 3,000 euros/m² and they are Barcelona with 2,974 euros/m², Bizkaia 2,853 euros/m², Malaga with 2,596 euros/m², Araba – Álava with 2,570 euros/m² and Girona with 2,202 euros/m². On the other hand, Ciudad Real with 938 euros/m² is the only province with housing prices below 1,000 euros per square metre.

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