Selection of relevant news on real estate in Spain
We are pleased to give you information about news on real estate investments published in different media in Spain. We hope you find it interesting. We can help you analyze how this information can generate opportunities for your next investment.
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Home sales increased by 9.9% in February 2017 and price rose by 2.5%
Sale of homes reached a number of 38,176 transactions in February which entails an inter-annual increase of 9.9%. The average price per square meter of homes sold in February was €1,305, entailing an increase of 2.5%.
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Guardiola, director of Banco Sabadell: Spain is the country with the cheapest mortgages
Jaime Guardiola has stated that it is not necessary “to rob Peter to feed Paul” with the mortgage law reform. He has even indicated that Spain is the country with the cheapest mortgages in Europe and with “more people owning homes”.
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European buyers move fast taking advantage of British weakness after Brexit
European buyers significantly exceed the number of British people interested in Spanish real estate. Since last summer, the number of interested European buyers continued to grow, thus reflecting that Europeans are currently representing the real drive of sales of properties in our country.
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Distrito Castellana Norte would create 214,000 jobs, increasing national GDP by 14 billion
The Distrito Castellana Norte (DCN) Project planned for the Northern part of the City of Madrid, known as Chamartín operation, would generate a total number of 241,000 jobs, in addition, the project which involves more than 6 billion in investments, will increase GDP by 14 billion and it would entail 3.34 billion revenue for public administration offices due to the economic activity that will be driven by this initiative.
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Foreign buyers are driving the second homes market
According to the Association of Real Estate Registers, last year foreign buyers purchased 55,512 housing units in Spain, which entails an increase of 18.8% compared to the previous year and 13.74% of all sale operations conducted, one of the highest figures historically recorded.
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The construction sector is gaining confidence and it is close behind tourism boom
According to the NSI, trust in the brick sector has reached, in the first quarter, the highest recorded figure in its historical series that started in 2013. By the end of March, the Harmonized Business Confidence Index (ICEA as per its Spanish acronym) has obtained 140.7 points, but beyond this record figure in itself, this index places the construction sector above the national average, whose confidence level is 134.2 points, this being the second highest figure in the ranking system, only behind transport and hostel services sectors.
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Real estate funds offer their own home sales in Spain
Large international funds such as Invesco, Harbert Activum SG and Stoneweg are developing residential projects in Spain in search of high returns. Attracted by the decline in prices after the bubble burst, the funds arrived seeking opportunities in the tertiary sector-related business (mainly offices and commercial assets). However, the increase in the price of these properties and the improvement in the macroeconomic conditions of the country have led investors to focus their attention on a new type of investment: the residential asset. The main advantage of investing in residential assets is profitability.
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Real estate investment in Spain grows 50% and it exceeded 3.4 billion by March, according to CBRE
From such amount, 70% has come from foreign funds, thus confirming that foreign investors are eager to enter the Spanish real estate market. From such foreign investors, the Americans have been the most active ones, who invested 33% of the total and they have continued to be active in the beginning of the year, as shown by the operations closed between January and March by GreenOak, CBRE Global Investors, Hines, HIG Capital, Thor Equities or Harbert Management, among others, and some other funds such as Varde or Blackstone should be added, with strong emphasis on the residential sector.
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Activity indicators anticipate some robust growth in the IT sector
The activity indicators anticipate some robust growth in IT. In terms of supply, the business index which accounts for 50% of the activities included in the GDP, experienced a remarkable inter-annual move to 6.0% in February. Inflation dropped 7 tenths in March, reaching 2.3% due to some slowdown in fuel and power prices (on an inter-annual basis)
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Mortgage signatures increased by 16.9% in January
A total number of 27,240 contracts were signed, 36.8% of which were fixed-rate mortgages according to data provided by the NSI (National Statistics Institute). The average amount involved was 112,844 euros, 6.4% higher than in January 2016.
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Land spike promises more expensive homes in big cities
Figures show that the prices of plots sold last year were 13% higher than the previous year, thus anticipating new spikes in brand new homes, mainly, in big cities where the demand for this type of properties is higher than the available supply.
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The real estate boom triggers the foreign banking business in Spain
Non-residential real estate investment reached the record amount of 14 billion euros last year. This figure reflects investors´ interest in acquiring assets in Spain and it also shows that Spain assets didn´t go unnoticed to foreign investment entities which, after some of them fleeing from the market, have come back to take advantage of the Spanish real estate recovery.
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Homes sales went up 18.1% in January and remained high for 12 consecutive months
Out of all home transactions filed with the real estate registry in January, 82.2% involved used homes, with an inter-annual increase of 20.7%. According to data provided by the NSI, the second-hand market has recorded its highest figure in sales in the last nine years (January 2008) and it has already accumulated 35 months with positive results.
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Capital cities intensify price growth in February
The average price of finished houses (brand new and second-hand homes) continues the positive tendency that had started at the beginning of the year, with 1.8% inter-annual increase in February. “Baleares and Canarias” showed a 4.4% increase compared to the previous year and the “Capital cities and big cities” experienced an increase of 3.4% and they remain the driving force of the market.
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Mortgage foreclosure fell by 30.9% in 2016
The economic growth, but especially, the favorable financing conditions and willingness of banks to provide payment facilities, have led to a continuous and strong decrease in mortgage foreclosure processes in the last years, as indicated by the Asociación Española de Banca (AEB). As autonomous communities, Andalucía was the mostly affected community, with a total of 11,581 cases, followed by Comunidad Valenciana (7,638) and Cataluña (6,956). On the opposite side: País Vasco (214), Navarra (233) and La Rioja (284).
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The construction sector is leading the job growth in February
During the second month of the year, a number of 74,080 individuals registered in the Social Security service and, again, the construction sector has been a protagonist in February as almost 24,000 new registrations took place, i.e. one, out of three jobs, were created by such sector after a 3.45% recovery.
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