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Update on the Spanish Real estate market: Prices Up, Transactions up, Foreigners active, Financing conditions… Which regions are the most sought after?

23 Sep
2017

Automatic translation from Google translate:

During the second quarter, house prices in Spain went up 0.16% and 4.4% year-on-year.

 

The College of Registrars, the office of notary in Spain, has released the last statistics of the Spanish real estate market up to June 2017 in its quarterly report:

  • The prices are rising 4.4% on a year-on-year basis
  • Transactions are increasing by 5%
  • Foreigners remain active  (highest level of activity since 2008)
  • British, Germans and Frenchs are the biggest buyers.
  • The Canary Islands are the most sought-after regions by foreigners vs locals.
  • Mortgage conditions remain favourable at 2.27%

During the second quarter, house prices in Spain went up 0.16% and 4.41% year-on-year, it is the tenth quarter in a row with price increases! Prices are still 24% under the levels of 2007 but rebounded by 15% from 2014 lows.

Transactions up 5%

The number of properties sold was just under 120.000, 5% more than on the first quarter. 20.000 properties are new-build.
Real estate transactions in Spain are at the highest level since 2008

Spaniards and Foreigners are very active, both are buying the most since 2008, check this chart:

Yearly data. Source: Ministerio de Fomento

The regions having strong growth rates in terms of sales are the Canary and Balearic Islands (above 17% growth).

Which regions are the most sought-after?

The regions with the biggest number of transactions remain the same:

  • Andalusia, 22.8k
  • Catalonia, 20.1k
  • The Community of Madrid, 18.1k
  • and the community of Valencia. 17.4k

The provinces with the highest number of housing sales are:

  • Madrid, 63,037,
  • Barcelona, 51,010,
  • Alicante, 32,068,
  • Málaga, 28,271,
  • Valencia, 23,644,
  • Baleares, 15,158,
  • Seville, 13,423,
  • Murcia, 12,274,
  • Las Palmas, 10,962,
  • and Tenerife, 10,602.

The provinces with the highest year-on-year increases in housing sales are:

  • Tarragona, 26.6%,
  • Almería, 25.7%,
  • Barcelona, 21.3%,
  • Baleares, 21.1%,
  • and Tenerife, 19.7%.

Foreigners remain active: British, French, and German made the top 3!

Foreigners remain very active with 13% of transactions, i.e. 15.600 properties were bought by foreigners.

  • British remain the biggest buyers with a 14.90% of the properties bought by foreigners,
  • French with 8.5%,
  • Germans with 7.8%,
  • Belgians with 6.4%,
  • Italians with 6.2%,
  • Swedes with 6.2%,
  • Romanians with 4.3%,
  • Chinese with 4.1%,
  • Russian 2.7%,
  • Dutch 2.5%,
  • Norwegian 2.2%

 

Who are the foreigners buying real estate in spain? Infographic

Where do foreigners buy?

Here are the top 4 regions (% bought by foreigners):

  • Canary Islands, 32,2%
  • Balearic Islands, 28.4%
  • Valencian Community 25.5%
  • Region of Murcia 19.2%

Of course, foreigners are buying mainly (more than 90%) in the Mediterranean regions

and the top provinces  (% bought by foreigners) :

  • Tenerife (39.72%),
  • Girona (29.39%),
  • Malaga (29.02%),
  • Baleares (28.37%),
  • Las Palmas (24.79%),
  • Murcia (19.18%),
  • Tarragona (15.21%),
  • Almeria (14.74%)
  • and Castellon (14.43%).

Remember our nice infographic with the data of last year:

Where are foreigners buying in spain? Infograhic

Analysis of the financial conditions and the mortgage activity

  • Interest rates were at 2.27% at historical lows!
  • On average, mortgage borrowing was of 1.200€/m² vs 1.188€/m² in Q1,
    • with the highest in Madrid with 1.754€/m²
    • and the lowest in Extremadura 656€/m²
  • On average the mortgage debt per household is €115.769
    • with the highest in Madrid (€ 184,223)
    • and the lowest in the Canary Islands (€ 76,793)
  • 5% of mortgages had a variable rate (Euribor mainly) as reference
  • 5% of mortgages had a fixed rate as reference
  • The average length of a mortgage loan was 23 years and 4 months.
  • The average monthly mortgage charge is €536 (for a is €115.769 mortgage)
  • Which is 28% of a monthly wage
  • There were 6.744 foreclosures in Q2.

Have a look at the full report here in Spanish.

Looking for an expert in Spain? Ask us directly!

 

 

 

 

 

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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