Posted on 06 September 2017
The good news has been coming in thick and fast for the Spanish residential property market recently: property prices, home sales and mortgage activity are all on the up.
The latest Price Index for Repeated Home Sales – this looks at homes which have been sold at least twice since 1995 – published the Property Registers College, reveals that house prices in Spain rose 4.4% year-on-year in the second quarter of 2017. That’s the tenth consecutive quarter a house price rise has been recorded. This news will be warmly welcomed by overseas property buyers with an eye on the investment potential of their new pad.
A sharp rise in demand for residential property has contributed to this upwards pressure on prices. There were 39,625 property sales recorded by the Land Register in June, up 19% compared to the same period last year, according to the latest figures from the National Institute of Statistics (INS). New home transactions rose by 20% in June for the first time since August 2010, with resale transactions following suit.
Let’s take a look at how regions popular with overseas buyers are performing when it comes to demand this year:
- Catalonia: +26%
- Balearics: + 20%
- Alicante: +18%
- Costa del Sol: +12%
While sales have dipped slightly in expat and holiday home hotspots like the Costa del Sol, the figures remain positive. It looks like it will take more than Brexit to prevent Brits from realising their dream of living in the sun.
This consistent demand for residential property in Spain has seen the number of mortgages registered on homes in June increase by 16.5% compared to the corresponding month last year. This healthy year-on-year increase was recorded following the highest monthly mortgage total – 29,516 new mortgages registered – since September 2011.
The good news doesn’t end there. Not only were more loans dished out during June than at any point in the last six years, the average amount loaned per mortgage – €116,629 – was at its highest level since 2011 – further proof of increased activity in the Spanish property market and rising prices, with banks more willing to lend and buyers willing to take on more debt.
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