Property Sales increase in Spain

Property Sales increase in SpainThe Spanish property market because of the rise in sales of residential properties grew by eight per cent in June 2014 compared to last year.

Sales statistics just released from the National Statistics Institute, shows that Spain has seen a year on year increase in property sales for four consecutive months, ending a ten month duration of year on year declines.

Valencia boasts the largest increase of house sales per 100 thousand people, followed closely by the Canary and Balearic Islands.

In relation to this, Madrid performs the highest, with a 30.4 per cent increase. Extremadura, with 25.7 per cent, and Navarra, at 19.3 per cent, placed at second and third.

There has been very positive movement on the Costa del Sol this year. to put it into perspective: there have been four new housing developments within the Costa in 2013 compared with none throughout the previous 3 years. Potential developers need to stay grounded, however, as thirty per cent of recent homes on the Costa are still to be sold.

An average two-bedroom apartment on the Costa del Sol can go for €196,956, while a family home comes in at €393,520.

Experts predict that Spanish property markets is likely to stabilise towards latter part of the year.

Spain receives record tourists in July

Spain receives record tourist numbers in July
Flight arrivals increased by almost 6%

In July this year, Spain received 7.7 million international tourists, representing an increase of 4.4% over the same month last year, or 328,000 more people.

According to the Survey of Tourist Border Movements (Frontur) prepared by the Ministry of Industry, Energy and Tourism, these figures mark an all-time high in the records for monthly arrivals.

The Ministry stressed that “this increase strengthens the positive trend seen throughout the year, with the exception of the month of April.”

Germany and France were the markets that contributed most to the month’s increase, and Catalonia was the destination that registered most growth.

Accumulated in the year, from January to July, Spain received about 33 million visitors, representing a rise of 3.3% year-on-year.

1.76 million tourists arrived from the UK in July, up 0.5% from a year earlier, and their main preferred destination was the Balearic Islands, followed by Catalonia.

The second source market was France, increasing 7.7% over the previous year to 1.27 million tourists. The Ministry, headed by José Manuel Soria, pointed out that “this positive result is mainly concentrated in Catalonia, their main destination.”

Germany followed, with 1.17 million tourists (+9.7%), and Italy, with 479,607 visitors (+5.7%).

El Mundo reported that also noteworthy, is the increase in arrivals from the United States, which soared 27% in July, reaching 180,040 tourists.

In July Catalonia was the first national tourist destination, and also experienced the biggest increase of the period, in line with the positive trend held throughout the year, as explained by the Ministry.

Specifically, the region received 2.02 million tourists, up 9%, driven by the flow of arrivals from the British, French and German markets.

The Balearic Islands, in second place, saw an increase in tourists of 2.6% in July, reaching 1.98 million. Germany, traditionally its main source market, led this increase, together with a positive contribution from the UK market.

Andalusia again registered a decrease (-2.1%), marking its seventh consecutive decline, but less intense than the previous months. Specifically, the region received 933,902 tourists, and the reduction in the number of British tourists, its primary market source, explains much of this negative result.

The fourth most visited destination was the Canary Islands, which received 821,969 tourists in July, down 14%, and which breaks the trend of increases in previous months, with the exception of April.

Frontur’s data also shows that airport arrivals increased by 5.9% in July, in line with the trend experienced throughout the year.

Road travel broke the downward trend of the first half of the year, with the exception of May, and rose 1.9%.

Tourists staying in hotels rose slightly (0.8%), following the strong increases in the first half. By contrast, non-hotel accommodation in July broke from the path of decline of recent months, registering a major increase of 10.6%.

Tourists travelling on a package holiday fell for the second time this year (-4.4%), while those not on a package holiday increased by 8.3%, after the declines of earlier in the year.

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Mortgage Statistics – January 2012

According to figures released by The National Statistics Institute (INE), during the month of January, the average value of the mortgage constitutions recorded in the land registries stood at 122,973 euros, a 5.0% increase compared to the same month in 2011, and 10.6% higher than that recorded in December 2011.

In the case of mortgages constituted for dwellings, the average value was 107,217  euros, 9.7% less than in January 2011, and 3.2% higher than that registered in December  2011.

The value of the mortgages constituted on urban properties stood at 5,308 million euros in January, indicating an interannual decrease of 35.3%. In dwellings, the capital loaned  exceeded 3,127 million euros, 46.9% less.

Mortgages by institution

Banks were the institutions that granted the highest number of mortgage loans in January (64.7% of the total), followed by Savings Banks (18.9%) and Other financial institutions  (16.4%).

Regarding the capital loaned, Banks granted 67.6% of the total, Savings Banks 18.2%, and Other financial institutions 14.2%.

Mortgage interest rates

The average interest rate in January 2012 was 4.42%, indicating a 19.1% increase in the interannual rate, and an increase of 1.6%, as compared with December 2011.

By institution, the average interest rate of Savings Bank mortgage loans was 4.37%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.55%, and the average term was 21 years.

92.8% of the mortgages constituted in January used a variable interest rate, as opposed to the 7.2% that used a fixed rate. Within the variable rates, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 87.8% of new contracts.

Mortgages with registration changes

In January, the total number of mortgages with changes in their conditions recorded in the land registries stood at 30,571, with an interannual decrease of 6.6%. In the case of dwellings, the number of mortgages with modified conditions decreased 9.0%.

Considering the type of modification to conditions, in January, 25,409 novations (or modifications produced within the same financial institution) took place, for an interannual decrease of 2.6%. The number of transactions that changed institutions (subrogations creditor) was 3,487, 28.2% less. In turn, 1,675 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied a decrease of 6.2%.

Number of mortgages with changes in interest rate conditions

Of the 30,571 mortgages with changes in their conditions recorded in the land registries in January, 40.6% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 4.1% to 2.7% 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 Other interest rates (3.90%). The lowest average interest after the change was that corresponding to the Euribor (4.36%).

After the modification to conditions, the average interest of the loans decreased 0.19 points in fixed interest rate mortgages, and decreased 0.10 points in variable interest rate mortgages.

Registered mortgage cancellations

In January, 40,515 mortgage cancellations were registered, 7.5% less than in the same month of 2011. Mortgages cancelled on rustic properties increased 11.4%, and those cancelled on urban properties dropped 8.1%. Registered cancellations of mortgages on dwellings decreased 9.9% in the interannual rate.

Geographical distribution

The highest number of mortgaged properties per 100,000 inhabitants was recorded in La Rioja (224). There is no community that presented a positive variation rate. The greatest negative variation rates were registered in Aragon (-61.0%) and Galicia (–49.2%).

Comunidad de Madrid registered the highest average amount mortgaged (169,892 euros). Andalucia presented the highest positive interannual variation rate (30.0%).

The Communities showing the highest numbers of properties with modified conditions per 100,000 inhabitants were Castilla-La Mancha (145) and Comunitat Valenciana (134). Those having the greatest number of registered mortgage cancellations per 100,000 inhabitants were La Rioja (320) and Cantabria (162).

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

Property transfers decreased 4.5% in January

INEThe National Institute of Statistics (INE) has released statistics for the Transfer of Property Rights in January 2012, showing a 4.5% decrease over the previous month.

The number of property transfers recorded in the land registries, from public deeds previously registered, was 151,186 in January, that is, 4.5% less than for the same month in 2011, and 31.4% more than in December 2011.

In the case of registered merchantings of property, the number of transfers was 71,623, representing an interannual decrease of 18.6%, and an increase of 42.3%, as compared with the previous month.

Merchantings recorded in the land registries

86.2% of the registered merchantings corresponded to urban properties and 13.8% to rustic properties. Among the urban properties, 53.6% were merchantings of dwellings.

The number of merchantings of rustic properties increased 10.6% in the interannual rate in January, while that of urban properties decreased 21.9%. Within the latter, merchantings of dwellings decreased 26.3%.

Registered merchantings of dwellings, by protection system and status

86.2% of transfers of dwellings by merchanting in January were free housing, and 13.8% were protected housing. In interannual terms, the number of transfers of free dwellings by merchanting decreased 28.1% and that of protected dwellings decreased 12.7%.

54.1% of the dwellings transferred by merchanting in January were new, and 13.8% were used. The number of transactions on new dwellings decreased 17.5%, and the number of used dwellings decreased 34.5%, as compared with January 2011.

Geographical distribution

In January 2012, the total number of property transfers recorded in the land registries per 100,000 inhabitants¹ was highest in the Autonomous Communities of La Rioja (742), CastillaLa Mancha (690) and Castilla y León (676).

The Autonomous Communities showing the highest number of registered merchantings of property per 100,000 inhabitants¹ were La Rioja (365) and Castilla-La Mancha (329).

By registered merchantings of dwellings, the Autonomous Communities in which the number of transfers per 100,000 inhabitants¹ was highest was La Rioja (148).

59.5% of merchantings of dwellings in November 2011 were recorded in four Autonomous Communities: Andalucía, Cataluña, Comunidad de Madrid and Comunitat Valenciana.

The full report can be downloaded here: Statistics on Transfer of Property Rights – Jan 2012

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.