The #1 Spanish real estate network of local experts

Housing foreclosure in Spain: -27% in Q3 2018 to 1.182 houses

17 Dec
2018

Translate this page:

 

Housing foreclosure in Spain: -27% in Q3 2018 to 1.182 houses

 

This is a very good news for the real estate sector in general and for the property owners in Spain in particular.

The annual rate of housing foreclosures in Spain is 0.05%

The total number of registrations for foreclosure on dwellings initiated in the third quarter of 2018 was 1.182 houses vs 1.622 in the same quarter of 2017 and 3.941 in 2016.

This is what the Instituto Nacional de Estadistica just published in its report.

 

27% decrease vs 2017

For 2017, 27.171 properties were foreclosed, (housing and others) i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

This is a nice decrease of 34% vs the numbers of 2016.

Look at the evolution of foreclosure over the last 4 years.

 

It is an impressive 3 year in a row decrease since 2014: -34% in 2017, -31% in 2016, -15% in 2015.

 

Default rate by initiation date

As you can see on this chart, the default rate is the highest and represent about 50% of all defaults for the mortgages initiated in 2006, 2007 and 2008.

 

As you can see on our chart, prices were much higher at that time: €2.100 vs €1.590 now (September 2018).

 

Most impacted regions

Regions with the highest foreclosure rates  for housing are: 

  • Castilla- La Mancha, 0.09% of all existing properties, 367 housing during the quarter
  • La Rioja, 0.08%, 64 housing during the quarter
  • Cantabria, 0.08%, 109 housing during the quarter

 

Foreigners active in the same regions

It could represent a nice opportunity for foreigners as they are active in all those regions. As a reminder, foreigners bought 16% of all transactions during the last year.

Click on the image and get our last report analysing where foreigners are buying real estate in Spain in 2017.

 Our reports on how to buy a property in Spain

Why are foreclosures decreasing?

The three main reasons are:

  • The economy in Spain is stronger: GDP growth above 2% and one of the highest in Spain, see the sixth “must see chart on the Spanish real estate” comparing the Spanish growth rate with all its EU counterparts. Going in Sync with higher growth, you have a decrease in the unemployment rate as you can see in our table with the economic statistics of Spain.
  • Financing rates are very low: check our table on mortgage and financing rates in Spain.
  • A final reason was explained above: about 50% of the foreclosures are mortgages that were initiated in 2006, 2007 or 2008. Right now, we are 10 years later and so people could adjust in the meantime on one side and on the other side, as prices are much lower, people are taking a much more “calculated” risk.

 

Do you want to find bank repossessions in Spain right now?

Do you want to have a look at properties repossessed by Spanish banks? Have a look at our article, one of the most read of our site, on that subject: Spanish bank repossessions: Your ultimate guide to 120.000 properties.

 

Are you looking for a competitive rate for your mortgage in Spain?

 

 

Here was the update of the last quarter of 2017

  • The annual rate of foreclosure in Spain is 0.1%

The total number of registrations for foreclosure on dwellings initiated in the fourth quarter of 2017 was 2.103 houses vs 4.696 in the same quarter of 2016.

That is what the Instituto Nacional de Estadistica said in its last report.

  • 34.2% decrease for 2017

For 2017, 27.171 properties were foreclosed, i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

This is a nice decrease of 34.2% vs the numbers of 2016.

Look at the evolution of foreclosure over the last 4 years.

 

It is an impressive 3 year in a row decrease since 2014: -34% in 2017, -31% in 2016, -15% in 2015.

  • Default rate by initiation date

As you can see on this chart, the default rate is the highest and represent about 50% of all defaults for the properties acquired in 2006, 2007 and 2008.

  • Regions with the highest foreclosure rates  for housing are: 
  • The region of Murcia 0.43%, 3.252 units
  • Andalusia 0.42%, 13.644 units
  • Valencian community 0.42%, 10.212 units

 

Check the full press release in Spanish.

 

Looking for an expert in Spain? Ask our network of local partners directly!

 

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

 
FOLLOW US
SHARE with the colour icons at the bottom of your screen
print

Related Post

Privacy Preference Center

Translate