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

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Statistics on transfer of property rights – July 2012.

In July, the number of property transfers registered at notary was 133,144 which represent a 3.9% increase over the same period last year.

This is according to figures released by the National Institute of Statistics which also showed that the number of homes transferred in July was 2.5% lower than in the same month last year.

The press release is below.

The number of property transfers recorded in the land registries, from public deeds previously registered, was 133,144 in July, that is, 3.9% more than for the same month in 2011, and 2.2% higher than in June 2012.

In the case of registered merchantings of property, the number of transfers was 57,344, representing an interannual decrease of 0.6%, and an increase of 5.3%, as compared with the previous month.

Merchantings recorded in the land registries

86.5% of the registered merchantings corresponded to urban properties and 13.5% to rustic properties. Among the urban properties, 55.2% were merchantings of dwellings.

The number of merchantings of rustic properties increased 1.2% in the interannual rate in July, while that of urban properties decreased 0.8%. Within the latter, merchantings of dwellings decreased 2.5%.

Registered merchantings of dwellings, by protection system and status

87.6% of transfers of dwellings by merchanting in July were free housing, and 12.4% were protected housing. In interannual terms, the number of transfers of free dwellings by merchanting decreased 2.5%, the same figure than protected housing.

48.5% of the dwellings transferred by merchanting in July were new, and 51.5% were used. The number of transactions on new dwellings decreased 0.2% and the number of used dwellings decreased 4.6%, as compared with July 2011.

You can download the full press release here: Statistics on Transfer of Property Rights – July 2012

Average mortgage value increases in June

Mortgage applications increased 1% in June
Mortgage applications increased 1% in June

The average value of new mortgages in Spain increases 1.0% in June 2012, compared to the same month last year. The average value now stands at 122,487€.

This is according to figures released by the National Institute of Statistics. The main points of the press release are below.

Mortgage Statistics – June 2012

During the month of June, the average amount of mortgage constitutions recorded in the land registries stood at 122,487 euros, a figure 1.0% higher than the same month the previous year and 9.1% higher than that recorded in May 2012.

In the case of mortgages constituted for dwellings, the average amount was 107,507 euros, 2.6% less than in June 2011, and 6.3% higher than that registered in May 2012.

The value of the mortgages constituted on urban properties was 4,672 million euros in June, indicating an interannual decrease of 20.8%. In dwellings, the capital loaned exceeded 2,614 million euros, 27.2% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in June (75.3% of the total), followed by Savings Banks (10.2%) and Other financial institutions (14.5%).

Regarding the capital loaned, Banks granted 74.4% of the total, Savings Banks 10.5%, and Other financial institutions 15.1%.

Mortgage interest rates

The average interest rate in June 2012 was 4.32%, indicating a 4.8% increase in the interannual rate, and a 0.1% decrease as compared with May 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.40%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.43%, and the average term was 21 years.

94.3% of the mortgages constituted in June used a variable interest rate, as opposed to the 5.7% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 84.5% of new contracts.

Mortgages with registration changes

In June, the total number of mortgages with changes in their conditions recorded in the land registries stood at 29,840, with an interannual increase of 0.5%. For housing, the number of mortgages with modified conditions decreased 0.1%.

Considering the type of modification of the conditions, in June 25,225 novations (or modifications produced within the same financial institution) were produced, for an interannual decrease of 2.5%. The number of transactions that changed institutions (subrogations creditor) was 3,258, that is 23.1% more, as compared with June 2011. In turn, 1,357 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an interannual increase of 16.2%.

Registered mortgage cancellations

In June, 37,828 mortgage cancellations were registered, 4.5% less than in the same month of 2011. Mortgages cancelled on rustic properties decreased 7.3%, whilst those cancelled on urban properties decreased 4.4%. Cancellations of mortgages on dwellings decreased 7.8% in the interannual rate.

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

July Consumer Price Index stands at 2.2%

INEThe annual change of the CPI for the month of July stands at 2.2%, three tenths above the change registered the previous month.

This is according to figures released by the National Institute of Statistics who summarise the main points as follows:

  • The annual change of core inflation increases one tenth, standing at 1.4%.
  • Monthly change of the overall index is –0.2%.
  • The Harmonised Index of Consumer Prices (HICP) annual change stands at 2.2%, four tenths higher than that registered in June.

Annual evolution of consumer prices 

The annual change for the overall Consumer Price Index (CPI) in July was 2.2% three tenths higher than that registered in June. This change was the same than the CPI flash estimate, published last 30 July.

The groups that most contributed positively in this rate were:

• Medicine, with an annual change of 6.6%, almost ten points higher than the previous month, mainly due to the variation in the rubric of medical and other pharmaceutical products, as a result of changes on its specific legislation of financing.

• Transport, whose annual variation increased nine tenths and stood at 3.8%, mainly due to the increase in prices of fuels and lubricants, and less in air transport, more acute this month than July 2011.

• Housing, with an annual change of 5.4%, four tenths higher than the previous month, mainly due to the increase in prices of electricity. Besides this increase, worth noting the drop on the annual change of gas, whose prices increased more in 2011 than this month.

Although there was an increase to the annual change of the CPI, it’s worth noting the decrease in prices in the following groups:

• Food and non-alcoholic beverages, that presented an annual variation of 1.8%, four tenths lower than the previous month. In this behaviour, worth noting the decrease in prices of fresh vegetables and poultry meat. Besides the decreases, highlight the increase in price of fresh potatoes and potatoes preparations, as compared with the decrease registered in July 2011.

• Alcoholic beverages and tobacco, with an annual change of 9.5%, two points lower than the previous month, mainly due to the increase in prices of tobacco was lower this month than the previous year.

Monthly evolution of consumer prices

In July, the monthly change of the overall CPI was –0.2%.

The groups with the greatest negative monthly contribution to the overall index were the following:

• Clothing and footwear, whose monthly change of –12.2%, covering the effects of the drops in prices prior to the summer sales campaign. Its contribution to the overall CPI was -0.980.

• Furnishings, household equipment and routine maintenance of the house, that presented a monthly change of –1.1% and a contribution of –0.073, mainly due to the drop in prices of household textiles articles and furniture.

You can download the complete press release here: Consumer Price Index (CPI) – July 2012

June shows 14.4% decrease in property sales

Property transfers decreased in June
Property transfers decreased in June

The number of property sales in June was 54,447 representing a decrease of 14.4% compared to the same period last year, and a decrease of 9.3%, as compared with the previous month.

This is according to figures released by the National Institute of Statistics (INE) which shows that of the total 25,405 were residential showing a decrease of 11.4%.

Statistics on Transfer of Property Rights – June 2012.

The number of property transfers recorded in the land registries, from public deeds previously registered, was 130,294 in June, that is, 8.1% less than for the same month in 2011, and 8.1% lower than in May 2012.

In the case of registered merchantings of property, the number of transfers was 54,447,representing an interannual decrease of 14.4%, and a decrease of 9.3%, as compared with the previous month.

Merchantings recorded in the land registries

84.9% of the registered merchantings corresponded to urban properties and 15.1% to rustic properties. Among the urban properties, 55.0% were merchantings of dwellings.

The number of merchantings of rustic properties decreased 7.8% in the interannual rate in June, while that of urban properties decreased 15.5%. Within the latter, merchantings of dwellings decreased 11.4%.

Registered merchantings of dwellings, by protection system and status

87.3% of transfers of dwellings by merchanting in June were free housing, and 12.7% were protected housing. In interannual terms, the number of transfers of free dwellings by merchanting decreased 10.1% and that of protected dwellings decreased 19.6%.

47.7% of the dwellings transferred by merchanting in June were new, and 52.3% were used. The number of transactions on new dwellings decreased 12.3% and the number of used dwellings decreased 10.6%, as compared with June 2011.

You can see the full press release here: Statistics on Transfer of Property Rights – June 2012

Bankruptcies increased 28.6% in second quarter

INEThis is according to new figures released by the National Institute of Statistics (INE) which shows that 30% of those made bankrupt during Q2 were construction and property development companies, confirming the sector is a long way from recovering.

Bankruptcy Proceedings Statistics – Second quarter of 2012

During the second quarter of 2012, the number of debtors processed reached 2,272, representing a 28.6% increase, as compared with the same period the previous year.

By type of proceeding, 2,111 were voluntary (27.1% more than the second quarter 2011) and 161 were necessary (51.9% more). Considering the type of proceedings, ordinary proceedings increased 270.6%, and abbreviated proceedings increased 7.3%.

Companies processed, by legal nature and turnover bracket

Of the 2,272 debtors processed in the second quarter, 2,026 were companies (individuals with business activity and corporations). 77.3% of the companies declared bankrupt were Private Limited Companies.

69.0% of the companies declared bankrupt were within the lowest turnover bracket (less than two million euros), and were mainly Private Limited Companies.

87.8% of companies declared bankrupt during the first quarter of 2012 did not belong to any business group. Of the remaining companies declared bankrupt, 11.9% belonged to a Spanish group, and 0.3% to a group under foreign control.

Companies declared bankrupt, by economic activity and number of employees

30.8% of companies declared bankrupt carried out their main activity in Construction and property development, 18.3% in Industry and energy, and 17.4% in Trade.

Regarding the number of employees, 33.7% of the total number of companies declared bankupt were within the bracket of 1 to 5 employees.

You can see the full press release here: Bankruptcy Proceedings Statistics – Second quarter of 2012

Annual labour costs increased in 2011

INEThe National Institute of Statistics (INE) has released figures showing the annual costs per worker increased by 1.1% in 2011, compared to the previous year.

The INE summarise the main points as follows:

  • The total cost per worker, in gross terms, is 31,170.06 euros during the year 2011, for a 1.1% increase over the previous year.
  • The net cost is 30,886.60 euros per worker, after deducting 283.46 euros for subsidies and deductions received by the Public Administrations in order to promote employment and vocational training.
  • 73.1% of the total cost is earmarked for wages (22,775.76 euros per worker) and 22.0% to obligatory Social Security contributions (6,872.70 euros per worker).
  • Of the remaining items comprising the cost, 556.88 annual euros per worker are for social benefits, 323.40 for expenses from work, 530.37 euros correspond to compensation for dismissal and 110.95 to vocational training.
  • 95.7% of the centres, representing 89.5% of workers, regulate their labour relations through collective agreements.

Annual labour cost per worker

The labour cost per worker, in gross terms, was 31,170.06 euros in 2011, according to the results of the Annual Labour Cost Survey (ALCS), which completes the results obtained quarterly from the Quarterly Labour Cost Survey (QLCS). This cost represented a 1.1% increase as compared with the year 2010. After subtracting the subsidies and deductions received by the Public Administrations from this figure, a net cost of 30,886.60 euros was obtained, also with interannual growth of 1.1%.

Salaries and wages plus contributions to Social Security, together, accounted for 95.1% of the gross cost.

In addition to wages and contributions, 556.88 annual euros per worker were for social benefits (voluntary contributions to insurance and pension plans, complementary benefits from Social Security and expenses of a social nature), 323.40 for other expenses from work (end of contract payouts, small tools and work clothes, travel to the workplace, selection of personnel, etc.), 530.37 euros corresponded to compensation for dismissal, and 110.95 euros to vocational training.

Labour cost by economic activity

Industry was the economic sector with the greatest labour costs, reaching 35,251.32 euros per worker in 2011, that is, 1.7% more than the previous year. Worth noting was the increase in wage costs (2.8%), as well as the decrease in non-wage costs (1.5%).

The Construction sector experienced the greatest growth in net cost (2.6%), due to the increase in both wage costs (2.5%) and non-wage costs (2.8%).

In the Services sector, the increase in net cost was 1.0%. This sector recorded the least growth in wage costs (0.5%), and a 2.3% growth in non-wage costs.

The differences between the labour cost per worker were noteworthy, according to the different activities of the CNAE-09 classification of activities, with a broad spectrum ranging from 18,845.19 gross annual euros per worker in Accommodation, to 77,034.69 euros per wage earner in the Supply of electrical energy, gas, steam and air conditioning section.

You can see the full report here: Annual Labour Costs Survey – 2011

Average mortgage value down 7.2% in May

Average mortgage value down 7.2%
Average mortgage value down 7.2%

The National Institute of Statistics has released figures showing a fall of 7.2% in the average value of mortgages constituted in May, compared to the same time in 2011.

The average mortgage value in May was 112,320€, a figure 7.2% lower than the same month the previous year and 1.8% lower than that recorded in April 2012.

In the case of mortgages constituted for dwellings, the average amount was 101,168 euros, 7.5% less than in May 2011, and 1.5% higher than that registered in April 2012.

The value of the mortgages constituted on urban properties was 4,550 million euros in May, indicating an interannual decrease of 33.5%. In dwellings, the capital loaned exceeded 2,631 million euros, 35.8% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in May (73.8% of the total), followed by Savings Banks (10.2%) and Other financial institutions (16.0%).

Regarding the capital loaned, Banks granted 71.5% of the total, Savings Banks 10.8%, and Other financial institutions 17.7%.

Mortgage interest rates

The average interest rate in May 2012 was 4.32%, indicating a 5.9% increase in the interannual rate, and a 1.4% decrease as compared with April 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.36%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.47%, and the average term was 20 years.

94.4% of the mortgages constituted in May used a variable interest rate, as opposed to the 5.6% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 85.3% of new contracts.

Mortgages with registration changes

In May, the total number of mortgages with changes in their conditions recorded in the land registries stood at 32,819, with an interannual increase of 5.8%. For housing, the number of mortgages with modified conditions increased 7.8%.

Considering the type of modification of the conditions, in May 28,158 novations (or modifications produced within the same financial institution) were produced, for an interannual increase of 8.0%. The number of transactions that changed institutions (subrogations creditor) was 3,331, that is 4.1% less, as compared with May 2011. In turn, 1,330 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an interannual decrease of 10.6%.

Number of mortgages with changes in interest rate conditions

Of the 32,819 mortgages with changes in their conditions recorded in the land registries in May, 37.3% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 3.3% to 2.3% 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 and after the change was that corresponding to Other interest rates.

After the modification of conditions, the average interest of the loans increased 1.09 points in fixed interest rate mortgages, and decreased 0.16 points in variable interest rate mortgages.

Registered mortgage cancellations

In May, 39,788 mortgage cancellations were registered, 9.1% less than in the same month of 2011. Mortgages cancelled on rustic properties decreased 11.5%, whilst those cancelled on urban properties decreased 9.0%. Cancellations of mortgages on dwellings decreased 10.1% in the interannual rate.

Download complete report from INE: Mortgage Statistics – May 2012

1,744 companies dissolved in May

More companies closed their doors
More companies closed their doors in May

The National Institute of Statistics (INE) has released figures showing the number of companies dissolved in May increased by 20.6% on a year-on-year basis.

The number of mercantile companies created in May decreased0.9%  compared to the same month of 2011.

8,031 mercantile companies were created in May, 0.9% less than in the same month of 2011, and 17.4% more than in April 2012. The capital subscribed for their constitution exceeded 398 million euros, representing an increase of 32.0% as compared with May of the previous year. The average capital subscribed (49,594 euros) registered an interannual increase of 33.2%.

On the other hand, 2,977 mercantile companies increased their capital in May, 15.4% less than in the same month of 2011. The capital subscribed in the increases registered an interannual decrease of 65.4%, and exceeded 2,669 million euros. The average capital subscribed in these transactions (896,619 euros) decreased 59.1%.

The number of companies dissolved in May was 1,744, indicating an interannual increase of 20.6%. Of these, 66.0% did so voluntarily, 5.0% due to mergers and the remaining 29.0% for other reasons.

Results by main economic activity and type of society

22.8% of the mercantile companies created in the month of May corresponded to Trade and 20.0% to Construction and property development.

Out of the total mercantile companies created in the month of May, 99.4% were private limited companies and 0.6% were public limited companies. Out of the total companies that increased their capital, 91.9% were private limited companies and 8.1% were public limited companies.

80.3% of the capital registered by the mercantile companies created was subscribed by private limited companies, and 19.7% by public limited companies. Regarding the capital subscribed in capital increases, 74.6% corresponded to private limited companies, and 25.4% to public limited companies.

The interannual rate of the number of public limited companies created in May decreased 2.1% and the rate for private limited companies 0.9%.

Considering the companies that increased their capital, the number of public limited companies registered an interannual decrease of 24.8%, and the rate for private limited companies 14.3%.

The capital subscribed by the public limited companies created decreased 62.7% and 26.1% in private limited companies. As per the capital subscribed by the companies increasing their capital, the interannual rate for public limited companies registered a decrease of 86.5 %, and a decrease of 25.7% in private limited companies.

You can read the full report here: Mercantile Companies Statistics – May 2012

First Business Confidence Indicators report from INE

INEToday, for the first time, the National Statistics Institute is publishing the results of its new operation on Business Confidence Indicators (BCI).

The survey on which the BCIs are based is the first opinion poll conducted by the INE, and it is prepared based on a representative sample of 7,694 establishments, whose opinions began to be collected for the first quarter of 2012.

Summary of Results

The Harmonised Business Confidence Index (HBCI) of the INE stands at 101.39 points for the second quarter of 2012, indicating an improvement of 1.39 points, in the confidence of businesspersons, with regard to the first quarter (base 100).

There is a reduction in the lack of confidence by businesspersons regarding the future performance of their business in the second quarter of the year. In this sense, for the whole of Spain, the Balance of Expectations, that is, the difference between the opinions of optimistic and pessimistic business establishments, reaches -35 points in the second quarter, as compared with the -44 points registered in the first quarter, indicating a nine-point improvement.

Despite the improvement this quarter, the business confidence climate remains unfavourable. 8% of business establishments are optimistic regarding the future performance of their business as the quarter commences, whereas 43% are pessimistic.

Opinions regarding the coming quarter (Expectations)

8% of establishments believed that the performance of their business during the second quarter of the year would be favourable, whereas 43% believed that it would be unfavourable. The remaining 49% believed that it would be normal.

The difference between the percentages of favourable and unfavourable responses, known as the Balance of Expectations, stood at -35 points for Spain as a whole.

In the first quarter, 6% of the establishments believed that the performance of the business would be favourable, whilst 50% believed that it would be unfavourable, with the Balance of Expectations thus standing at -44 points.

Therefore, the lack of confidence by businesspersons as per Expectations decreased nine points (-44 points in the first quarter, and -35 points in the second).

Opinions regarding the last quarter (Situation)

In terms of the responses regarding the last quarter, 7% of the establishments expressed a favourable opinion regarding the past performance of their business in the first quarter, as compared with the 48% that had an unfavourable opinion.

The difference between these percentages of favourable and unfavourable responses referring to the last quarter, known as the Situation Balance, stood at -41 points, thereby improving the Expectations previously expressed for that first quarter, which stood at -44 points.

You can download the full report here: Business Confidence Indicators  – Second quarter of 2012