Spanish government confirms there could be up to 900,000 unsold new properties

The official estimate of the stock of unsold new properties in Spain stands at 680,000 units. However, the Ministry of Public Works stated in the presentation on Infrastructure, Transportation and Housing plan for 2012-2024, that its calculations do not include the self-promotion of housing (Co-operatives for example). If included, unsold new housing could be around 900,000 units. 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..

Aifos proposes paying buyers back in 10 years’ time

The Aifos real estate group has outstanding debts of 500 million euros in amounts owed to 5,000 creditors, of which approximately 1,000 are property buyers whose homes never materialised. Now a deal has been proposed that would allow them to recover at least part of their investment. More..

Junta de Andalucia agrees to study SOHA’s proposals for illegal homes

At the meeting the association put forward the situation of its members, who built properties with a licence from the local town hall and always respected the plans handed in to the local authority. More..

Prices down 30 percent since 2007

According to TINSA, house prices in Spain fell by 11.2% in July year on year.

Thus accumulate prices are down 31% from the peaks in December 2007.

Balearic and Canary Islands were the regions where the largest decreases were found in the seventh month of the year, recorded annual declines of 14%, TINSA said in its report.

They were followed by capitals and major cities that adjusted their value by 11.8% in July from the same month in 2011, and repeated the metropolitan areas with falls of 11.6%. In all three areas the cut was higher than the market average.

Spanish property sale increase 21.9 percent

The number of property sales reached 92,211 in the first quarter of 2012, representing a 21.9% increase over the previous quarter, according College of Property Registrars.

These data shows a “relative recovery” from the previous falls. However, the property registrars have warned that these results should be viewed with “caution” because they are influenced by the particularly strong decrease property prices over recent quarters of banks real estate assets, as well as measures such as the halving of IVA (VAT) that needs to be paid on the purchase on new properties.

Latest laws for evicting tenants in Spanish properties

In what we are seeing as quite a positive move, the Spanish government has recently passed a law to help stimulate the property rental market by making the eviction process much easier and simpler for landlords. Until now, the rental market for Spanish property has always been quite anaemic due to the lack of protection afforded to landlords, with one of the main issues being the length and difficulty of removing non-paying tenants. But it appears this is to change.


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

Foreign property investment on the increase

Investment in Spanish property by foreign buyers has risen in the first trimestre of 2011 to 1.13 billion euros, which represents a surge of 28.7% year on year. This marks a return to foreign investment in the real estate sector, which has not been seen since 2008.


Non-resident Spanish inheritance tax

For any non-resident Spanish property owner, the article below may be of serious interest as it appears that, at the least, all EU residents will be able to take advantage of all the tax breaks that are currently available to Spanish tax residents in the cases of property inheritance. This may even have a retro-active benefit for anyone who has inherited a property since 2006.



Spanish property problem areas

With the constant stream of property related problems in the media regarding Spain, from land grab laws, illegal builds, bankrupt developers, etc… I was looking into compiling a list of areas/properties for buyers to be wary of.


The Spanish property market in 2008 and beyond

First and foremost, before I go any further I just want to wish all my readers a Felices Fiestas! Hope you have had a very merry Christmas and here’s to a great new years.
Ok now for the boring stuff. Below I’m going to review how the property market has been and what we can expect from 2009.