property prices


Foreign Buyers represented 21.4pc of the Spanish Property Market in 2013

spanish-notaries-foreign-sales-2013

Non-resident buyers were primarily responsible for the growth in foreign demand last year.

Property purchases by non-Spaniards rose 9.8pc in 2013 compared to the previous year, according to the latest data from the Statistics Department of the General Council of Notaries.

Purchases by non-residents buying second homes and investments rose by 22.6pc, making this group the real drivers of the growth in demand. Purchases by foreign residents fell slightly (see chart above, left).

Foreigner buyers, both resident and non-resident, now represent 21.4pc of the market, the highest level on record.

Sales to foreigners grew 17pc in the Valencia Region, 16pc in the Canaries and Andalucia, and 15pc in Murcia. Foreign purchases plunged -33pc in Galicia, -29pc in Castile & Leon, and -24pc in Navarre.

notaries-foreign-sales-spain-region-nationality-2013British buyers were still the biggest group, but as a percentage of the foreign market they shrank again last year, down to 15pc (compared to 34pc in 2007). On the rise were the French (11pc), Russians (8pc), Germans (8pc), and Belgians (7pc).

Foreigners bought more last year, but they spent less, with the average purchase price in falling 4pc to 1,486 €/m2.

The data is based on sales witnessed by notaries in 2013.

Source: Spanish Property Insight

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Spain and Italy: Cheapest countries to buy property

average-house-prices-in-spainSpain and Italy are the European countries where it is cheaper to buy a single family home, according to estimates of the International Monetary Fund (IMF) and KBC Bank. Specifically, in Spain the average is 170,000 Euros, while in Italy it costs more than 150,000 Euros. Germany and the UK are the most expensive countries to buy a detached house at more than 250,000 Euros.

In a report on the Belgian economy the evolution of housing prices in Belgium, Spain, Ireland and Germany is shown. In Belgium prices have risen 110% in real terms since 2000 but, unlike other countries in the European Union like Spain, they continue to grow, according to an IMF report.

house-price-evolutionThe overvaluation of houses in Ireland had no parallel in any other country of the European Union as seen in the graph. In the case of Belgium, the property is overvalued by 5-15% according to the IMF and KBC Bank.

As far as the Spanish property market is concerned, this can be valued as positive news after six year’s of falling house prices, and perhaps at last, creating a solid environment for the market to recover.

 

Original source (in Spanish): idealista.com

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Spanish Property Prices have fallen 40% since the Peak

A report out this month by Tinsa, a leading independent appraisal company, shows that property prices in Spain have fallen 40% since December 2007.

This figure contrasts to the official estimate of 24%, provided by the Official Spanish House Price index, which is regularly criticised for its inaccuracy from both inside and outside of Spain, and which gives a false impression to would-be-buyers abroad as they think that prices are over inflated and should drop further. Here at LPG Spain, we would prefer to believe the former as being more accurate.

Tinsa goes on to report that the drop varies depending on the region or area of Spain. Average prices on the Mediterranean coastline have fallen the most with a 39.5% drop. Capital cities have fallen by 35.6% whilst metropolitan areas, by 31.4%.

The question is: Will prices continue to fall?

This depends from whom and where you buy.

The banks in Spain are discounting their property quicker than they can sell them, with prices sometimes up to 50% off together with very attractive mortgage packages to boot. The banks of course have to unload as soon as possible given the “toxic” state of their assets. On the other hand, some developers, who haven’t as yet been taken over by a bank, are also offering some very good deals.

The resale market is different though. Prices in general will vary considerably from one coastline to another, i.e. the Costa Blanca to the Costa del Sol, and still further from one town or village to another. Then you have the individual circumstances of the vendor, and whether there is urgency to sell, or not. Or has the property been on the market for long? And how many times has it been reduced in price?

One thing for sure is that the property market is moving and sales are being regularly made by our members, but there is one common factor – the price. A property is either offered for sale at the right price for today’s market, and sells quickly, or is one that has been around for a while and has finally come down to a competitive price, finally attracting a buyer.

So it’s still very much a buyers market as there is no sign of any increases, as yet. But it only needs a gradual increase in demand to firstly stop prices decreasing further, something that is already beginning to happen as purchases by the British last year were up on the previous year and the Scandinavian and Russian buyers are also quite prominent at the moment.

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Sell your Spanish property in a day… if the price is right

If your asking price is right you will sell your property in a day argues José Luis Jimeno, Managing Director of Noteges, a leading Spanish property company.

You have nothing but your own unrealistic expectations to blame if your property doesn’t sell fast. That’s the conclusion Jimeno has reached based on his experience of this market. “The homes that have sold are 40pc on average below the price of other properties for sale in the area,” he recently explained in an article in the Spanish press.

So who is selling? Vendors who bite the bullet and drop their prices to be the most competitively priced on the market. They tend to be people who really need to sell, like divorcees, people who have lost their jobs, or people who have to relocate.

It’s vendors like this that buyers should be targeting. “You can have a home for sale for months or even years, but until you drop your price to where the demand is, you can forget about selling,” says Jimeno, whose organisation sold more than 6,000 homes around Spain last year.

Source: Spanish property “sells in a day” if the price is right claims expert | Spanish Property Insight Blog.

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