Q1 2016 Saw Property Prices Fall 0.7%

Prices have gone up and down across the country
Prices have gone up and down across the country

Property portal Idealista have released data showing the prices of resale property in Spain fell an average of 2.8% during Q1, 2016, when compared to the same period in 2015.

A square metre will now cost an average of 1,552 Euros compared to 1,597 Euros 12 months ago.

However, the results are very different when looking at different areas of Spain.

In Barcelona, for example, you will now see an average cost per square metre of 3,478 Euros, an increase of 6.6% on the inter-annual rate. However, prices in the city are still 26.9% lower than during the peak of 2007.

Madrid saw a 2.2% average increase leaving a square metre at 2,832 Euros. Again, this is far below the pre-crisis peak when the same space would have cost you 4,035 Euros.

Despite the community of Valenciana seeing a drop of 2.2% in the inter-annual rate, property owners in Valencia city have seen their property values increase during the first quarter by an average 2.9% over the same period in 2015, leaving a square metre costing 1,471 Euros. This is 47.5% lower than the pre-crisis peak prices.

The two island communities, The Canary Islands and The Balearic Islands both saw increases in the average cost of a square metre with inter-annual increases of 4.1% and 3.9%, respectively.

Andalucia and the Costa del Sol

In Andalucia, the average price has fallen a slight 0.2% in the inter-annual rate, leaving a square metre costing 1,385 Euros.

Of the Costa del Sol areas it appears most are well into the recovery and many have seen price increases, some quite substantial. For example, in Manilva, prices have increased 15.7% in the last 12 months meaning you will now be looking at 1,324 Euros per square metre.

Estepona, Torremolinos and Coin also saw increases well above average with prices going up 7%, 6.3% and 5.6%, respectively.

In Marbella, arguably the most famous area of the coast, prices have increased by an average of 4.8% leaving a square metre with a cost of 2,425 Euros. At the end of Q1 in 2015 this cost was 2,313 Euros.

Of all the towns in Andalucia the majority finished the quarter on a positive with the exception of Antequerra, Caleta de Velez, Cártama, Ronda, Torre del Mar and Torrox.

This confirms the general feeling amongst agents here on the coast who have noticed a renewed interest in property for sale, as well as a very notable increase in tourist numbers. Some of the increases are due to security concerns in other countries with many tourists feeling Spain is the only “safe” option for a European holiday. These threats are not likely to continue indefintely and we will surely see a drop-off in tourist numbers as people start once again to visit Turkey, Tunisia, Greece, Cyprus and Egypt, all countries that have suffered of late. Hopefully, by the time that happens Spain, and specifically the Costa del Sol, would have had a great year for both tourism and the beleaguered property market.

You can see the full report from Idealista here.

Decline in Spain’s House Prices Biggest in the Eurozone

The price of housing in Spain experienced a drop of 10.6% in the second quarter, year-on-year, the highest amongst the countries of the eurozone, according to data released last week by Eurostat. However, this decline represents a slowdown compared with the year-on-year fall of 12.8% recorded in the first three months of 2013.

Data from the EU statistics office shows a fall of 0.8% in the house prices in Spain, compared to the first quarter of the year, when they fell by 5.1%, behind only the 2% quarterly decline recorded in the Netherlands. In fact, the quarterly decline in housing prices seen in the second quarter, the 12th consecutive negative quarter, is the lowest since the fourth quarter of 2010, when prices fell by 0.1%.

Over the whole of the eurozone, housing prices experienced a decline in the second quarter of 2.2%, year-on-year, two tenths less than that recorded in the first quarter. However, in quarterly terms, housing prices rose by 0.3% after falling by 1.4% in the first three months of the year, representing the first price increase since the third quarter of 2011.

property spain
Prices in Spain are bottoming out, is now the time to invest?

Meanwhile, El Pais reported that the figure for the EU showed a fall of 1.3% in annual terms, two tenths less than the decline observed in the first three months of the year, while compared with the first quarter, the prices increased by 0.4%.

Among the EU countries for which data are available, the largest annual price increases were registered in Latvia (+8.8%), Estonia (+8.1%) and Luxembourg (+5.1%), while the steepest declines were recorded for Croatia (-19.7%), Spain (-10.6%) and the Netherlands (-7.5%). Compared with the first quarter, the biggest price increases were registered in Latvia (+5.1%), Estonia (+3.7%) and Denmark (+3.1%), while the most notable declines were for Croatia (-6.5%), the Netherlands (-2%) and Hungary (-0.9%)

Article source: Kyero.com

Decline in Home Resale Prices Slows For First Time Since Crisis

The average price of a second-hand home stood at 1,762 euros per square metre at the end of the third quarter of the year, maintaining the same value as in the previous three months, and slowing for the first time the continued decline recorded since the beginning of the crisis, according to the latest report prepared by fotocasa.es in conjunction with the IESE business school.

Specifically, this price stabilisation contrasts with the results of the previous quarter (-3.8%), and breaks the chain of 24 consecutive quarters of declines registered in the price of second-hand housing since the crisis erupted in September 2007.

In monthly terms, Diario Sur reported that the price of used homes fell by 9.4% in September compared with the same month of 2012. However, this data presents a moderation of the year-on-year declines of previous months, when they registered decreases of up to 11%.

The report’s house price analysis shows that nine regions registered increases in the price of second-hand housing in the third quarter. Specifically, increases were noted for Valencia (1.3%), the Canary Islands (1.2%), Castilla-La Mancha (1.1%), Cantabria (0.9%), the Balearic Islands (0.6%), Madrid (0.6%), Murcia (0.3%), Aragon (0.3%) and La Rioja (0.3%). In contrast, prices dropped in the other eight regions, with the steepest decline being registered in Extremadura, of 2.5%, and the smallest in Catalonia (-0.2%).

Prices for all types of housing dropped down slightly in the last three months of the year, (by between 0.1% and 0.3%), except for those of the larger properties (of between 150 and 300 square metres) which rose by 0.4%.

Article source: Kyero.com

House prices continued to fall in 2011

Tinsa House Price ReportValuation and consultancy agency Tinsa has released it’s report into house prices in Spain for December 2011 showing a fall in the average price of housing of 8.1% over the year.

The year began with a five per cent decline in January dropping slightly to 3.7% by March but this has steadily increased throughout the year with a drop of 4.4% in April, 5.9% in May, 6.6% in June, 6.4% in July, 6.8% in August, 7.4% in September and 6.9% in October.

In the capitals and major cities house prices remained at record lows in December with a drop in the price of the average apartment of 9.1%, compared to the same time in the previous year. Meanwhile, the Mediterranean coastal areas saw a decline in prices of 7.2% while other areas dropped 8.4%.

Including the drop in December the cumulative drop since the peak of 2007 now stands at 31.5% for the Mediterranean coastal areas and 26.4% for the capitals and major cities.

You can download Tinsa’s report here.

Property prices fell 4% in 2011

In 2011 the price of new properties in Spain fell by 4% bringing the average price down to 2,376 euros per square metre, and the cost of the average home to around 213,000 euros.

This is according to the Sociedad de Tasación (Valuation Society) who estimate that prices will continue to fall in 2012 after falling 3.2% in 2010 and 4% in 2011.

Although they predict further decreases they stress that in some locations the decrease may be less pronounced. “It is expected the adjustment will continue at the supply level offered in late 2008, adapted to meet a volume of demand lower than in previous periods,” they said.

Europa Press reported that during 2011, the average price of new housing fell in 48 of the 50 provincial capitals, while only one saw an increase and the other remained unchanged.

Of the capitals Sevilla saw the greatest decline at -8.3% followed closely by Ciudad Real at -7.8%.

Four provincial capitals (Barcelona, San Sebastian, Madrid and Bilbao), saw a price per square metre higher than the national average while in ten others  (Murcia, Cáceres, Badajoz, Pontevedra, Jaén, Lugo, Zamora, Tenerife, Avila and Ciudad Real) the average value fell below 1,500 euros.

There were 81,000 new builds registered in 2011 showing a decline in construction mainly due to difficulties in financing projects.

The Sociedad de Tasación also noted an increase in the number of properties between one and five years old that were vacant and still awaiting first occupation, being offered for sale by non-real estate professionals including credit institutions and private individuals.

There was also an increase in the number of properties being sold on a rent-to-buy option.

Rental prices increase

Rental PropertyAccording to figures released by the National Statistics Institute (INE) the average price of renting a property in Spain increased by 0.9% during November, compared to the same month in 2010.

The increase in rental prices remains two points below the overall CPI which was at 2.9% by month end, reported El Mundo. Month-on-month, rental costs registered a variation of one tenth, which had risen this year by 0.8%.

In Navarre, the only region to register a decrease in rental costs, the average fell by 0.4%. The largest increase was in the Basque Country which registered an increase of 1.6%, followed by a 1.3% increase in Catalonia. An increase of 1.1% was registered in both Asturias and Galicia, followed closely by 1% increases in Andalusia, Cantabria, Castilla-La Mancha and Castilla y Leon

Surprisingly the costs in Madrid only increased by a mere 0.3%, while Murcia and La Rioja saw an even smaller increase of only 0.1%.

House prices continue to fall

Prices fallSpanish property prices have continued to fall during the third quarter according to figures published by the country’s Ministry of Public Works.

According to the figures the average value of homes in Spain fell by 5.5% during Q3. A quarter-on-quarter fall of 1.3 % was also recorded.

Speaking to the Wall Street Journal, Nomura banking analyst Daragh Quinn predicted that the Spanish real estate sector was likely to fall further. He estimates up to 100,000 new homes will be sold in Spain this year, less than half of the 326,000 properties that were bought during 2007, a year that many refer to as “the boom year”.

However, according to Tinsa’s General IMIE Index, house prices throughout Spain fell by an average of 7.4% between September 2010 and September this year. The report also showed that capitals and major cities, along with coastal areas, have suffered most from the decline registering drops in values of 8.9% and 8.2% respectively.

Property prices rise in Spain

This summer has seen record numbers of tourists visiting Spain with over 7 million visitors in August – an increase of 9.4% over the same period of 2010. Many hotels on the Costa del Sol enjoyed 100% occupancy over the summer. Figures show Q3 has been very busy with Spanish property prices rising slightly as a result.

According to statistics from Kyero.com property prices in Spain increased from €263,000 in June to €266,100 in September. This could suggest a shortage of quality properties in some regions or simply an increase in demand.

Conti – overseas mortgage specialists – recorded a 7% increase n Spanish property enquiries in August with many agents noticing an increase in enquiries and viewing trips.

Marc Pritchard, of Spanish developer, Taylor Wimpey España, said “The price rises in certain parts of Spain is an encouraging sign for investors with locations such as the Costa Blanca, Costa Calida, Alicante and Murcia experiencing marked price increases. Alicante, for instance, has experienced improvements in its infrastructure, seeing a second airport terminal open, which is always good news when it comes to attracting more visitors.”

Prices in Alicante have risen steadily over the last year. In December 2010 the average property price was €220,000 rising to €231,000 in September 2011, according to figures from Kyero.com.

Surprisingly, with the average price of property in Malaga at €299,500 (September 2011), which is above the national average, buyers do seem to be renewing interest in the Costa del Sol, traditionally a popular area for ex-pats.

Malaga has even been nominated as a candidate for the 2016 European Capital of Culture, which could boost future tourist numbers as well as property sales.

Optimistic signs for Spanish property

Property prices in Spain are dropping, tax on new build property is down by 50%, sales numbers are climbing and tourism numbers are at record levels – could this be the end of Spain’s holiday homes slump? For the first time international investors have overtaken domestic buyers.

Property agents all over Spain have noticed an increase in inquiries, viewing trips and sales as buyers watch prices fall.

TINSA’s August House Price Report noted an accumulated drop of 23.5% since it’s peak in late 2007. In the more popular areas excessive supply has pushed prices down by around 30%, while some repossessed properties have been selling at up to half the book value, with those in the best locations selling out first.

Overseas buyers are currently buying up to 1,000 properties a day in key areas like the Costa Blanca, Costa del Sol and Ibiza. Up to half of these sales are from Spanish banks or cash-strapped developers.


TINSA August House Prices Report Released

Tinsa has released house prices figures for August. You can download the report here.

The General IMIE index fell again in August to 1748 points, a year-on-year decline of 6.8%, continuing the trend of the last three months. The cumulative decline from the top of the market in December 2007 is now 23.5%.

This situation was also reflected in the market’s various segments, although “Capital and Major Cities” recorded a sharper year-on-year decline of 7.8%, followed by the “Mediterranean Coast” with 7.1%.

In the remaining areas, the decline in house prices was below the national average. In the “Metropolitan Areas” the year-on-year decline was 5.8%; in the “Balearic and Canary Islands” it was 4.9%; while the “Rest of Municipalities” it was 6.4%.

The cumulative declines to August from the top of the market, by area, were: “Mediterranean Coast” 29.2%, “Capital and Major Cities” 25.6%, “Metropolitan Areas” 23.4%, “Balearic and Canary Islands” 21.1%, and the “Rest of Municipalities” 20.4%.

TINSA Press Release