Hotel Bookings down 2.1% in August

Overnight stays in hotels in Spain registered a decline of 2.1% in August, despite the record increase in the number of foreign visitors. 40.8 million bookings were made in the eighth month of the year, which was 2.1% less than the same period of 2011, due to the fall in domestic demand.

The 3.5% rise in overnight stays by foreign tourists could not compensate for the 10% decrease in those made by residents, the National Statistics Institute reported on Monday.

Last month, the average stay was four nights per traveller, with a rise of 1.1%, despite the 0.8% annual increase in the Hotel Price Index, which took the revenue per occupied room to an average value of 84.6 euros (2.8 euros more than last year) and revenue per available room to 59.7 euros (0.4 euros more).

In August, 70.7% of the places available were booked, which was 2.6% less than a year earlier, while weekend occupancy was 72.6%, down 3.6%.

Foreign tourists accounted for 25.25 million of the overnight stays in August, compared with 15.56 million made by Spanish residents. The United Kingdom and Germany lead the ranking, with more than 12.5 million stays in August, making up 49.6% of the total, and Russia has now become the fifth source market, with a 29.7% increase in overnight stays, and 6.1% of the total.

El Pais reported that the Balearic Islands were confirmed as the main destination chosen by non-residents, with an increase of 4.5% compared to August 2011, followed by Catalonia (+6.4%) and the Canary Islands (+0.3%).

Travellers resident in Spain mostly chose to go to Andalusia, Valencia and Catalonia, although these regions recorded year-on-year declines in overnight stays of 6.9%, 4.7% and 11.9%, respectively.

Article source: Kyero.com

Average mortgage value fell 10.5% in July

According to figures from the National Institute of Statistics (INE), the average value of mortgages  for homes approved in July fell 10.5% to an average of 98,892€, compared to July 2011.

Overall, the average value of all mortgages constituted in Spain during July decreased 19.4% in the inter-annual rate with the average falling to 99,157€.

The main points of the press release are below.

During the month of July, the average amount of mortgage constitutions recorded in the land registries stood at 99,157 euros, a figure 19.4% lower than the same month the previous year and 19.0% lower than that recorded in June 2012.

In the case of mortgages constituted for dwellings, the average amount was 98,892 euros, 10.5% less than in July 2011, and 8.0% lower than that registered in June 2012.

The value of the mortgages constituted on urban properties was 3,858 million euros in July, indicating an interannual decrease of 28.9%. In dwellings, the capital loaned exceeded 2,402 million euros, 26.2% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in July (74.3% of the total), followed by Savings Banks (10.2%) and Other financial institutions (15.5%).

Regarding the capital loaned, Banks granted 71.9% of the total, Savings Banks 11.1%, and Other financial institutions 17.0%.

Mortgage interest rates

The average interest rate for the total of mortgage loans was 4.27%, indicating a 0.2% less than July 2011. Regarding dwellings, the average interest rate was 4.24%, representing an annual variation of 1.8%.

By institution, the average interest rate of Savings Bank mortgage loans was 4.34%, and the average term was 22 years. Regarding Banks, the average interest rate for mortgage loans was 4.38%, and the average term was 21 years.

92.1% of the mortgages constituted in July used a variable interest rate, as opposed to the 7.9% that used a fixed rate. The Euribor was the reference interest rate most used in constituting mortgages, specifically in 85.4% of new contracts.

You can download the full press release here: Mortgage Statistics – July 2012

Number of mortgages still falling

INEThe National Statistics Institute has released figures showing the average value of mortgages taken in March decreased 4.3% compared to the same period in 2011. The average value stands at 112,635 euros.

The number of mortgages with changes to conditions decreased 22.8%, while registered mortgage cancellations decreased 20.3%.

Mortgage Statistics  – March 2012

During the month of March, the average amount of mortgage constitutions recorded in the land registries stood at 112,635 euros, a figure 4.3% lower than the same month the previous year and 0.4% higher than that recorded in February 2012.

In the case of mortgages constituted for dwellings, the average amount was 103,782 euros, 7.8% less than in March 2011, and 1.0% less than that registered in February 2012.

The value of the mortgages constituted on urban properties was 4,351 million euros in March, indicating an interannual decrease of 42.5%. In dwellings, the capital loaned exceeded 2,586 million euros, 46.5% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in March (70.2% of the total), followed by Savings Banks (14.1%) and Other financial institutions (15.7%).

Regarding the capital loaned, Banks granted 73.0% of the total, Savings Banks 12.4%, and Other financial institutions 14.6%.

Mortgage interest rates

The average interest rate in March 2012 was 4.37%, indicating a 10.8% increase in the interannual rate, and 0.5% as compared with February 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.43%, and the average term was 21 years. Regarding Banks, the average interest rate for mortgage loans was 4.50%, and the average term was 21 years.

94.1% of the mortgages constituted in March used a variable interest rate, as opposed to the 5.9% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 87.0% of new contracts.

Mortgages with registration changes

In March, the total number of mortgages with changes in their conditions recorded in the land registries stood at 25,747, with an interannual decrease of 22.8%. For housing, the number of mortgages with modified conditions decreased 22.4%.

Considering the type of modification of the conditions, in March 21,678 novations (or modifications produced within the same financial institution) were produced, for an interannual decrease of 21.2%. The number of transactions that changed institutions (subrogations creditor) was 2,955, that is 31.7% less. In turn, 1,114 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an increase of 27.0%.

Number of mortgages with changes in interest rate conditions 

Of the 25,747 mortgages with changes in their conditions recorded in the land registries in March, 39.3% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 3.9% to 1.9% of the total), since most of these loans were referenced to a variable interest rate. Within the interest rate structure, the Euribor was the main reference.

The lowest average interest before the change was that corresponding to Active Reference Rate of Savings Banks (3.62%) and after the change was MRTI of Savings Banks (4.13%).

After the modification of conditions, the average interest of the loans decreased 0.3 points in fixed interest rate mortgages, and decreased 0.08 points in variable interest rate mortgages.

Registered mortgage cancellations 

In March, 44,390 mortgage cancellations were registered, 20.3% less than in the same month of 2011. Mortgages cancelled on rustic properties increased 2.8%, whilst those cancelled on urban properties decreased 20.9%. Cancellations of mortgages on dwellings decreased 24.4% in the interannual rate.

Geographical distribution

The highest numbers of mortgaged properties per 100,000 inhabitants¹ was in Castilla y León (148). There is no community that presented a positive variation rate. The greatest negative variation rates was registered in La Rioja (-57.2%).

Principado de Asturias registered the highest average mortgaged amount (154,234 euros), and presented the highest positive variation rates (39.3%).

The Communities showing the highest number of properties with modified conditions in March per 100,000 inhabitants¹ were Comunitat Valenciana and La Rioja (both with 121). Those having the greatest number of registered mortgage cancellations per 100,000 inhabitants¹ were La Rioja (191), and Castilla – La Mancha (156).

¹ This data was calculated from the revision of the figures of the Municipal Register for the year 2011. Only the population aged 18 to 84 years old was considered.

You can download the complete report here: Mortgage Statistics – March 2012

Average mortgage down 12.5% in February

INEFigures released by the National Statistics Institute (INE) show a drop in the average value of mortgages in Spain in February with a decrease of 12.5%, compared to the same period in 2011.

However, there was an increase of 4.8% in the number of existing mortgages that changed conditions, while the number of cancelled mortgages decreased 12.7%.

During the month of February, the average amount of mortgage constitutions recorded in the land registries stood at 112,179 euros, a figure 12.5% lower than the same month the previous year and 8.8% lower than that recorded in January 2012.

In the case of mortgages constituted for dwellings, the average amount was 104,868 euros, 14.6% less than in February 2011, and 2.2% less than that registered in January 2012.

The value of the mortgages constituted on urban properties was 4,615 million euros in February, indicating an interannual decrease of 50.1%. In dwellings, the capital loaned exceeded 2,770 million euros, 54.8% less.

Mortgages by institution  

Banks were the institutions that granted the largest number of mortgage loans in February (66.0% of the total), followed by Savings Banks (16.7%) and Other financial institutions (17.3%).

Regarding the capital loaned, Banks granted 66.3% of the total, Savings Banks 17.5%, and other financial institutions 16.2%.

Mortgage interest rates

The average interest rate in February 2012 was 4.35%, indicating a 17.3% increase in the interannual rate, and a decrease of 1.6% as compared with January 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.23%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.54%, and the average term was 21 years.

94.2% of the mortgages constituted in February used a variable interest rate, as opposed to the 5.8% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 86.5% of new contracts.

Mortgages with registration changes

In February, the total number of mortgages with changes in their conditions recorded in the land registries stood at 32,588, with an interannual increase of 4.8%. For housing, the number of mortgages with modified conditions decreased 6.9%.

Considering the type of modification of the conditions, in February 26,428 novations (or modifications produced within the same financial institution) were produced, for an interannual increase of 2.8%. The number of transactions that changed institutions (subrogations creditor) was 4,516, that is 20.8% more. In turn, 1,644 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an increase of 0.7%.

Number of mortgages with changes in interest rate conditions 

Of the 32,588 mortgages with changes in their conditions recorded in the land registries in February, 24.9% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 9.3% to 4.1% of the total), since most of these loans were referenced to a variable interest rate. Within the interest rate structure, the Euribor was the main reference. The lowest average interest before the change was that corresponding to MRTI of Banks (4.44%) and after the change was Other Interest rates (3.72%).

After the modification of conditions, the average interest of the loans decreased 0.97 points in fixed interest rate mortgages, and decreased 0.71 points in variable interest rate mortgages.

Registered mortgage cancellations 

In February, 40,658 mortgage cancellations were registered, 12.7% less than in the same month of 2011. Mortgages cancelled on rustic properties increased 9.6%, whilst those cancelled on urban properties decreased 13.4%. Cancellations of mortgages on dwellings decreased 16.6% in the interannual rate.

Geographical distribution

The highest numbers of mortgaged properties per 100,000 inhabitants¹ was in Illes Balears (169). There is no community that presented a positive variation rate. The greatest negative variation rates was registered in La Rioja (-70.8%).

Pais Vasco registered the highest average mortgaged amount (169,482). The Autonomous Community presenting the highest positive variation rates was Cantabria (26.4%).

The Communities showing the highest number of properties with modified conditions in February per 100,000 inhabitants¹ were Comunitat Valenciana (156) and Castilla-La Mancha (132). Those having the greatest number of registered mortgage cancellations per 100,000 inhabitants¹ were La Rioja (184), and Comunitat Valenciana (156).

¹ This data was calculated from the revision of the figures of the Municipal Register for the year 2011. Only the population aged 18 to 84 years old was considered.

You can read the full press release here: Mortgage Statistics – February 2012

Hotel stays down 3.5% in March

Hotel in Spain
Hotel stays down in March

The National Statistics Institute (INE) have released figures showing that overnight stays in Spanish hotels decreased 3.5% in March, as compared with the same month in 2011.

The hotels earned an average of 33.4 euros per available room and invoiced an average of 66.9 euros per occupied room.

During the month of March, 17.4 million overnight stays were recorded in hotel establishments, indicating a 3.5% decreases as compared with the same month in 2011. This decrease in overnight stays took place for both residents, whose interannual rate stood at –3.1%, and non-residents, with an interannual variation of –3.8%.

The average stay decreased 3.0% as compared with March 2011, standing at 3.0 nights per guest.

During the first quarter of the year, overnight decreased 0.7% as compared with the same period in 2011.

In turn, the Hotel Price Index (HPI) registered a 0.3% decrease in March. Regarding the indicators on the profitability of the hotel sector, invoicing per occupied room reached an average value of 66.9 euros, and income per available room stood at 33.4 euros.

In terms of occupancy, 44.6% of the available bedplaces were filled in March, indicating a 3.8% decrease as compared with the same month the previous year. The weekend occupancy rate by bedplaces stood at 49.3%, with a decrease of 7.7%.

Overnight stays of guests resident abroad

Guests from Germany and the United Kingdom registered rates of 27.7% and 20.9%, respectively, of the total overnight stays by foreign nationals in March. The German market experienced a 4.0% interannual decrease in overnight stays, while the British market registered a 2.1% increase.

Overnight stays of guests from France, Italy and Sweden (the following countries of origin) registered interannual rates of –8.3%, –23.3% and –1.7%, respectively.

Main destinations

The main destination chosen by non-residents was Canarias. In this Autonomous Community, overnight stays by foreign nationals decreased 7.2% as compared with March 2011. It was followed by Cataluña, with an interannual rate of 5.9%, and Andalucía, with an increase of 0.9%.

Andalucía, Comunitat Valenciana and Cataluña were the main destinations of guests resident in Spain, with interannual rates for overnight stays of –4.1%, –1.6% and –5.3%, respectively.

Results by Autonomous Community, tourist area and tourist site

During the month of March, Canarias was the Autonomous Community with the highest occupancy rate by bedplaces (70.1%), followed by Illes Balears (55.2%) and Comunitat Valenciana (47.2%).

The tourist areas with the highest occupancy and overnight stay rates were located on the islands and the coasts. The south of Gran Canaria recorded the highest occupancy rate by bedplaces (75.6%), while La Gomera registered the highest weekend occupancy rate by bedplaces (75.5%). Tenerife registered more than 1.9 million overnight stays in March.

The tourist sites with the highest number of overnight stays were Madrid, Barcelona and San Bartolomé de Tirajana. Mogán reached the highest occupancy rate by bedplaces (78.2%) and Puerto de Santa Cruz the highest weekend occupancy (80.4%).

Indicators on the Profitability of the Hotel Sector

The average invoicing by hotels per occupied room (ADR) in March was 66.9 euros, indicating a decrease of 0.1 euros as compared with the same month in 2011.

In turn, income per available room (RevPAR), conditioned by the occupancy registered in the hotel establishments, reached 33.4 euros, with a decrease of 1.9 euros as compared with March 2011.

By category, the average invoicing was 144.6 euros for five-star hotels, 72.4 euros for fourstar hotels and 51.9 euros for three-star hotels. Income per available room for these same categories was 75.3, 43.4 and 28.7 euros, respectively.

You can find the full press release here: Hotel Tourism Short-Term Trends – March 2012.

Record drop in mortgages in 2011

According to new figures from the Spanish Mortgage Association (Asociación Hipotecaria Española, AHE) the number of mortgages from Spanish banks fell 6% in 2011, the largest drop ever recorded.

At year end the mortgage balance stood at 1,009,656 million euros, the report shows.

In absolute terms, the net decline in mortgage lending was 67.271 million. In December alone it shrank by over 8 million euros, representing a decrease of 0.5% over the previous month. The data confirms the contraction suffered in Spain for the last four years. This is in contrast with growth exceeding 20% experienced during the peak of the housing boom.

By December, 543,766,000 euros in mortgages had been approved by savings banks, 6.54% less than a year earlier. For banks, the balance stood at 374,491,000, a 5.69% decrease from December 2010. Meanwhile, credit unions granted 67.058 million in loans, 4.87% less than the same period last year, while credit institutions account for 13.807 million euros, 36.02% more than in 2010.

With regard to new borrowing there has been a collapse in loans for private and corporate borrowers. According to the Bank of Spain the form of credit that suffered the most was families borrowing for property purchases. During 2011 banks granted 37.525 million euros in mortgages, a figure that is 46% lower than the year before when they loaned nearly 70,000 million.

The association suggests that the downward trend is likely to continue over the coming months, at least during the first half of this year.

In December the AHE predicted that the “turbulent” economic environment in Spain, and internationally, provides an “uncertain future”. However, a broad improvement in credit in the real-estate business is expected by the AHE.

The credit crunch became more severe in 2011, and when the crisis deepened it resulted in difficulties in obtaining finance. It is these circumstances that have reduced the overall balance of the mortgage portfolio which has reduced by 5.7%.

With the crisis continuing the market looks uncertain. On one hand falling house prices and interest rates are likely to increase the number of mortgages, while on the other hand economic pressure and rising unemployment could reduce borrowing.

Mariano Rajoy’s recently elected government has already approved financial reforms in an attempt to “clean up” the banks balance sheets and reduce their exposure to bad loans.