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%
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:
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.
Source: Ministerio de Fomento