Home Sales Soared 15.8% in February

Property sales increased in Feb 2016
Property sales increased 5.3% in Feb 2016

February 2016 proved to be a great month for property sales as the number of property transfers increased 5.3% over the same month in the previous year to a total of 154,386 properties.

Sales of housing increased a whopping 15.8% with 34,771 deed transfers registered, according to data released by the National Statistics Institute.

When looking at the type of housing sold, 84.9% was in relation to urban properties, with 15.1% of properties being rural. In the case of the urban properties, 56.7% were residential properties.

Rural properties showing an increase in the annual rate of 4.2%, while for urban properties the increase was 13.9%.

According to the data, 22.5% of the homes sold in February were new properties while resale (second-hand) properties accounted for 77.5% of purchases. This represents a fall of 0.2% on new property while resale properties seem to be responsible for the positive figures after registering a 21.4% increase in February.

By Community

Per 100,000 residents, the communities with the highest increases in property transfers during February were Extremadura and the Balearic Islands, with increases of 29.6% and 26.4%, respectively.

The only two communities to register a negative monthly variation were Andalucia which saw a fall of 10.6% and Galicia where property sales fell 1%, when compared to the same period in 2015. Despite this overall decline, Andalucia recorded the highest number of home sales in February with 6,476 homes sold. They were followed by Cataluña with 5,304 and Madrid with 5,275 home sales.

When looking at sales of residential property, the communities with the highest annual increase were the Basque Country with a massive 50.3% increase, closely followed by Asturias with a 40% increase and Cantabria where home sales increased 38.9%.

Type of Housing

The data suggests that 89.2% of the properties sold in February were free housing while 10.8% was protected. This represents an increase of 16% for free housing while protected housing increased 14.3%.

The data further suggests that when comparing February to January, 2016, sales of residential property increased by 7.3%, representing the first positive February for five years.

 

Spanish Hotels Enjoyed a Busy February

February was another great month for tourism in Spain with the number of overnight stays increasing to 16.3 million, an increase of 12.4%, when compared to the same month in 2015.

Hotels reported an average cost per night of 76.6 Euros, representing an annual increase of 7.9%.

The increase in overnight stays applies to both Spanish residents and non-residents with increases of 11.2% and 13.3% respectively. The average length of a stay was unchanged when compared to the previous year, standing at 2.9 nights per traveller.

Cumulatively, the first two months of 2016 showed an increase of 10.4% over the previous year.

Overnight Stays Spain Feb 2016

Destinations

Andalucia topped the list of most popular destinations with Spanish resident travellers with an increase of 15.1% in the number of overnight stays in the region. Madrid followed closely with a 13.3% increase while Valencia and Catalonia also managed significant increases registering increases of 14.2% and 11.1% respectively.

For non-residents the first choice destination was the Canary Islands who claimed 51.1% of all overnight stays, an increase of 10.6%. Following in second place, but quite some way behind, was Catalonia who recorded 14.7% of the total overnight stays, an increase of 17.2% over the same period last year. Andalucia was next with a 10.3% increase, representing 11.9% of the total overnight stays during February.

Hotels

Hotels reported 49.1% occupancy for February, showing an annual increase of 7.6%. When looking at only the weekends, occupancy increased 6.4% ending the month with an average of 57.2% occupancy.

Hoteliers on the Canary Islands recorded the highest occupancy rates for the month with 77.9%, closely followed by Madrid and the Balearic Islands, with 53.4% and 48.9% respectively.

Within the islands, Gran Canaria reported the highest rates with 83.3% occupancy by number of available places, while Tenerife recorded the highest weekend occupancy, interestingly also 83.3%. The highest number of overnight stays on the islands was Tenerife with more than 2 million overnight stays recorded during February.

Travellers by Origin

The UK remained the largest source of travellers for February accounting for 23.8% of tourists, a massive 22.0% increase over last year. The Germans followed closely with 20.4% of travellers arriving from Germany, an increase of 2.3%.

Other European countries also saw an increase in travellers to Spain. French travellers increased 9.7%, Swedish by 16.6% while the number of Italian travellers increased 16.7%.

Profits

The increase in traveller numbers is great news for the hotel industry. The daily average price charged per occupied room was 76.6 Euros during February, representing an increase of 7.9% over the same period last year.

When looking at the hotels by category, the average turnover per occupied room was 171.2 Euros in a five-star hotel, with averages of 80.7 Euros for four-star, and 57.9 Euros for three-star. By number of available rooms, the average turnovers for five, four and three-star hotels were 111 Euros, 53.7 Euros and 33.8 Euros, respectively.

 

Property Prices Up 2.7% in February

In February the average price of finished housing (new and used) in Spain, showed an increase of 2.7% to 1,346 points.

Data released by Tinsa shows the Spanish property market remains positive. Furthermore the increase for this period show a great year-on-year increase following the steep decline in the same period last year which took the index back to May 2003 levels, the lowest since the global financial meltdown.

The “Mediterranean Coast” and “Capitals and Major Cities” showed the biggest gains showing interannual variations of 6.1% and 4.6% respectively.

Despite the country as a whole showing a cumulative increase of 2.7% the country’s smaller towns (“other municipalities”) remain low, lower than the same period last year.

From the crisis of 2007, the average price adjustment now stands at 41%.

Not forgetting the decline of 2015 the areas included in the Mediterranean Coast showed the largest annual increase despite showing a slight decline of -0.1% during January and February, 2016.

The Balearic and Canary Islands registered an increase of 2.5% in February, when compared to the same period in the previous year, while “Metropolitan Areas” show an average increase of 1.5% over the last 12 months.

Despite the positive news and outlook prices are still a way off pre-crisis levels. The steepest declines are in the Mediterranean Coast (-48.1%), Metropolitan Areas (-44.7%) and Capitals and Large Cities (-44%). The cumulative adjustment is now below average in The Balearic and Canary Islands having recorded a fall of 30.7% since 2007, and also in Other Municipalities where prices have fallen 36.5%

Spain - House Prices Increase 2.7% Feb 2016

The Tinsa IMIE is calculated from housing appraisals and each month collects the change in the cost of a m2 of a building and compares it to 2001. The absolute numbers (points) correspond to the value of the index and are not relate to the price per square meter.