Spanish property Market March 2010

I have just been reviewing the latest statistics by the Instituto Nacional Estatisticas (INE), and the signs of the market bottoming out continue. Total property transfers throughout Spain (mainland and islands) During the month of March, the number of property transfers was 168,532, that is, 0.5% less than for the same month in 2009, and 1.1% higher than the figure recorded in February 2010.

Out of a total of 168,532 property transfers, 82,623 were actual property sales with the remainder being donations, swaps, inheritance, etc…

According to the INE, property sales are up 2.2% compared to March 2009 and down 5.3% compared to February 2010.

Of the 82,623 property sales, 88.5% corresponded to ‘urban’ properties, of which 37,561 were dwellings. The sale of dwellings has increase by 9.0% year on year and decreased by 8.5% month on month for March 2010.

Of the total dwellings sold, the trend of near parity between new and resale properties appears to be continuing with the level of new builds making up 48.9% of the total sales. With total sales of new build standing at 18,349, this is a decrease year on year of 4% and a month on month decrease of 14.1%. This month on month decrease can be explained due a ‘spike’ in new build completions from the month of February. The resale market has faired better with 19,212 sales in March, a year on year increase of 25.1% and only a drop of 2.3% month on month.

Of the 37,561 urban dwellings sold in March, 10.5% were protected housing. Of the total 33,632 ‘free’ properties that were sold, Andalucía accounted for 19.03% (or 6,343) of the total. Unlike the national statistics, that show an even split between the sale of new build and resales, Andalucía had 54.9% (3963) new build property sales and 45.1% (3256) resales. The higher percentage of new builds in Andalucía as compared to the national statistics can be primarily explained by the ‘property investment’ boom over the last decade.

Andrew Bellés

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