Selection of relevant news on the Spanish real estate market
We are pleased to send you information about news published in different media on real estate investments in Spain. We hope you find them interesting. We’ll be glad to help you analyze how this information can generate opportunities for your next investment.
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The average price of apartments will increase 7.5% this year
The value of the apartments will strongly increase as a consequence of a huge increment in sales (+17%), as informed by Instituto de Práctica Empresarial. The granting of mortgages (+8.7%) and the construction of buildings (+25%) underpin the recovery of the sector which will reach cruising speed in 2017.
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Banks start granting mortgages again based on bubble criteria
100% financing in 40 years
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Construction is again the engine of economic growth of half of Spain
In 2017, instead, the communities leading the growth will be: Valenciana, Navarra, Castilla-La Mancha, Extremadura, Aragón and Galicia. Also, Madrid, Cataluña and the Balearic Islands will be added to this list. All these regions will reach a GDP above 2.3% the average amount.
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Madrid becomes one of the most attractive cities for investors
Low prices and better return expectations in the tertiary real estate sector are the most important advantages of the Spanish market
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Renovated offices encourage a rise in the Madrid market of office rentals and average rental sizes
The average rental sizes in new or renovated buildings in Madrid office market is 1600 square meters. This figure is twice the average space that has been contracted by companies in the capital cities so far this year, which is 750 square meters, as informed by Savills real estate consulting company.
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Madrid, among the seven cities of the world with more foreign investment in real estate
Madrid is becoming one of the top cities with more investments in real estate by foreign companies. According to Global Cities 2017 report written by Knight Frank, a real estate consulting company, the capital city of Spain is ranked seventh with an investment amount exceeding 5 billion euros, after Manhattan, London and Paris.
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The acquisition of homes by foreigners jumped by over 160% compared to the minimum figures recorded
Private market home sales conducted by foreign citizens already stand for 20% of the Spanish market, according to information published by notaries regarding the first semester in 2016.
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Spain, the second European country with the highest level of international investment in real estate
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A total of additional 24 capital cities record prices higher than the minimum figures recorded in recent years
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The number of authorizations for the construction of new houses increases 35.7%
Out of the total number of authorizations granted until August, 31,751 authorizations have been given for block apartments (with 44% increment) and 11,109 for single-family houses (16.7%)
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The increase of demand for office spaces encourages the promotion of new projects in the sector
The estimate of new square meters to be made available in the 2nd semester of 2016 and in the year 2017 will help mitigate current low availability. The downtown area concentrates the highest demand while the most important volume of supply is in the peripheral areas.
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CaixaBank anticipates higher increases in home prices in the next months
In their opinion, apartments will be revalued as homes demand has been boosted and because of the lack of available houses to be sold in certain prime areas such as big cities. They consider that the strong increment in land values is a good indicator of future increase in home prices.
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Retail and logistics consolidate the Spanish real estate market in the third quarter
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Home sales rise 15.1% and the second best quarter is recorded since 2010
The number of transfers conducted during the second part of the year amounts to 123,159 representing 90.3% of second-hand acquisitions
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Banks will increase the annual granting of mortgages from 200,000 to 500,000 between 2018 and 2020
The mortgage market is starting to see the light at the end of the tunnel. At least this is so considered by Oliver Wyman consulting company and the Spanish Mortgages Association (AHE as per its acronym in Spanish) as they believe that the granting of new mortgages will reach the number of 550,000 contracts annually between 2018 and 2020, due to low interest rates and a better economy.
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The construction will grow in Spain twice than in Italy and three times more than in Germany
Spain holds an outstanding position in Europe as far as construction is concerned. Throughout this year our country has in several occasions led rebounds in the activity and estimates indicate that it will continue playing a leading role in the next years.
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Product scarcity causes increase of rentals in stores and malls
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The average urban land price increased during the second quarter of the year to 6.6% on a year-on-year basis, reaching 163.4 euros, a figure that had not been reached since the fourth quarter in 2012.
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