Foreign Buyers Bolster Housing Market

According to the latest housing statistics published last week by the Spanish Ministry of Development on the Government website, La Moncloa, 345,471 homes were sold in Spain between July 2012 and June 2013, representing an increase of 2.3% over the previous twelve months.

The statistical results of residential property transactions made before a notary show that in the second quarter of 2013, a total of 80,722 homes were sold in Spain, representing a decline of 4.2% compared with the second quarter of 2012.

With regard to the territorial distribution of these transactions, five regions recorded positive year-on-year results, and 12 registered declines. Prominent among the highest increases were the Canary Islands (16.2%), Catalonia (12.1%) and Murcia (9.5%), while the most significant declines, year-on-year, were registered in Extremadura (-38.4%), Navarra (-33.6%) and the Basque Country (-33.1%).

By province, 17 registered year-on-year increases, with Girona (36.0%), Huesca (32.7%), Palencia (30.7%) and Malaga (21.2%) heading the list. 34 provinces registered negative results, the most pronounced being those for Guipúzcoa (-53.1%), Toledo (-43.8%), Álava (-42.6%) and Badajoz (-39.2%).

For municipalities, those recording the highest number of sales were Madrid (5,269), Barcelona (2,813), Valencia (1,561) and Seville (1,228).

Among the provincial capitals and municipalities with more than 100,000 inhabitants, noteworthy because of growth were Huesca (94.4%), Girona (82.4%), Logroño (79.5%), Barakaldo (75.2%), Leganés (65.2%) and Teruel (61.9%). As for the biggest declines, these were registered for Getafe (-68.0%), Caceres (-52.0%), Badajoz (-51.7%), Vitoria (-45.8%), Toledo (-45.3%) and Cadiz (-44.4%).

The number of transactions for new housing amounted to 14,056, representing 17.4% of the total transactions in the second quarter of 2013, while there were 66,666 transactions for second-hand housing, accounting for 82.6% of the total.

Housing transactions made by foreign residents in Spain has experienced year-on-year growth for eight consecutive quarters, and increased by 28.4% compared with the second quarter of 2012, reaching a total of 12,546 purchases. In addition, purchases made by non-resident foreigners totalled 1,086 in the quarter, which also represented year-on-year growth for eight consecutive quarters.

Taken together, the purchases made by foreigners (residents and non-residents) account for 13,632 of the transactions, which represents 16.9% of the total, and the highest percentage recorded in the historical series (2006-2013).

By province, those registering the most purchases by foreign residents were Alicante (3,543), Malaga (1,771), Barcelona (1,008), Tenerife (921) and Girona (767).

Article source: