Light at the end of the tunnel for the Spanish property market?


This year could be the year where all indicators on the health of the property market emerge from the red.


Spanish real estate attracting foreign investment

Spain plans to offer residency permits to foreigners who buy properties priced at more than 160,000 euros as part of its efforts to revive the real estate market and rid itself of hundreds of thousands of unsold properties. More..

New home buyers nervous over looming tax increase

Thousands of property buyers are becoming anxiously nervous as the end of the year approaches. The reason is simple. If you are buying a new property, if you go to completion before the 31st of December you will only be paying 4% IVA (VAT) on the purchase, but if the purchase takes place in 2013 then the IVA rises to 10%. The difference of 1 day could lead to a 6% increase in the cost of purchase. More..

Investors Return to Spain as Surplus Reaches Record

Spain posted its second current account surplus in the euro’s history and foreign investors increased their holdings for the first time this year, helping Prime Minister Mariano Rajoy’s campaign to resist a bailout. More..

Spain to keep property tax incentives

The Minister of Development, Ana Pastor, asserted today that the Government has no intention of removing tax incentives for homeownership. “They are in effect because this government wanted it” and we do not see us change our minds, she added.


Spanish property market still weak in June

Home sales in June were the lowest since the property crash began, show the latest figures from the Statistics Institute (INE).

There were 24,699 home sales in June (excluding social housing), down 26pc on the same time last year, below even June 2009, when the crash was thought to be at its nadir. The graph above makes it clear that, after a deceptively promising start, 2011 (in red) is turning out to be the worst year yet.

Compared to June 2007, sales were down 60pc – a teeth-jarring fall by any measure.

Year-to-date, transactions are down 11pc compared to last year, 3pc compared to 2009, and 55pc compared to 2007, as illustrated by this table.

On an annualised basis, sales have fallen in 10 of the last 12 months.

Assuming that prices have fallen by an average of 30pc since 2007, then in value terms (Euros) the market has shrunk by 70pc since then. That means 70pc less money around for everyone who lived off the housing market, town halls in particular.

All this helps explain why many town halls are now in the jaws of a financial crisis: They ramped up their spending and overheads during the boom, assuming it would last for ever, but now the money has dried up and they can’t afford to pay their bills. A 70pc fall in revenues from real estate helps explain why.

Why are transactions still falling? Partly because the credit crunch is still in full swing – in Spain at least – and partly because the abolition of mortgage tax relief at the end of last year brought forward sales that might otherwise have taken place in the first half of this year. So the figures might make the market look worse than it actually is. To find out we will have to wait and see if there is a recovery in the second half of the year.

The following table summarises the key transaction data month-by-month for the last 5 years.

Article by Mark Stucklin

Spanish property market dips in September after 8 months on the up

After the euphoria of August, when the market surged 27pc, a major blow to morale in September, as the market shrank 4.5pc compared to last year, ending a run of 8 months uninterrupted growth.

Spanish property market grows 27 percent in August


Costa del Sol property downward lurch or stagnation

In the short to medium term it appears that Spain’s property market is not set to rebound as many with a vested interest have been claiming. With high unemployment and lack of credit a general improvement in property transactions is still a way off. Even though the INE property statistics do appear to showing that the market has bottomed.


Spanish property market relapse in October


Spanish Property Index 2nd Quarter 2009

The latest quarterly property index has just been released by Spain’s Statistics Institute (INE). I have included all the pertinent information from the document below.

Spanish Property Market update

According to Spain’s national institute of Statistics (INE) the collapse in property sales may be coming to an end. Based on the latest figures from July (link below), there were a total of 37,079 property transactions in the month, of which 33,694 were standard sales and 3,345 were social housing (VPO).

Spanish property set to make a recovery?

I have recently read an article by Mark Stucklin that I thought gave a fair reflection on the current state of the Spanish property market. Although less specific to the Costa del Sol, it does give a balanced view on the state of the national property market.

Fuengirola property market

The summer months are traditionally a quiet time in the Real Estates business on the Costa del Sol as many of the people who visit the area are primarily in holiday mode. Beach, sangria and nightlife are the main concerns with little thought given over to property purchases.