Second Quarter Figures Show Drop in Property Sales

According to data released by the Ministry of Development property sales in Spain continued to decline during the second quarter with a 40.8% drop over the same period in 2010, with 90,746 transactions.

The first three months of the year showed a decline of 30.4%, despite the increases in late 2010 which may have been motivated by the demise of the tax credit for home purchases for incomes exceeding 24,000 euros.

The Ministry said that year-on-year results were not strictly comparable as VAT increased from 7% to 8% in July 2010.

The figures showed that new housing accounted for 33.7% of all transactions and maintained the downward trend compared to resale properties.

Real estate transactions registered at notary in the last twelve months in Spain (July 2010-June 2011) stood at a total of 396,245 homes sold.

Regionally, sales increased during the first quarter. The most notable increases were in Cantabria (45.96%) and Cataluña (39.25%) while some regions saw a drop (Galicia-1.32%,  Navarra-15.74%).

At the end of August it was revealed that the fall in the number of new mortgages set up reached 42.4% year-on-year in June, with 32,680 signatures, one of the lowest figures recorded by the National Statistics Institute.