Spanish property in greater demand as INE confirms July numbers push transactions to more than 300.000
Spanish property in greater demand as INE confirms July numbers push transactions to more than 300.000
According to Spain’s Instituto Nacional de Estadística (National Institute for Statistics) the number of properties sold in Spain continues to be on the increase with INE reporting 45.900 transactions in the month of July 2018 and a total of around 308.000 Spanish property transactions in the first seven months of 2018.
The July figures are 16.9% up year-on-year and are so far the third highest monthly figure in 2018, an 11.7% increase on the 2017 figures. 38.120 second hand Spanish properties exchanged hands in July whilst 7.780 new build Spanish properties were exchanged. The market for resale property in Spain dominated with around 83% of all transactions.
According to the official figures published by the Instituto Nacional de Estadística, the top four places in Spain for property sales in July were Andalucia, Catalonia, the Valencian Community and Madrid. Each of the areas reported more than 7.000 property transactions each with the Comunidad Valenciana reporting the strongest per 100.000 inhabitant sales at 185, while madrid reported 137 sales per 100.000 inhabitants and the Balearic Islands reported 172 sales per 100.000 inhabitants.
The sale of Spanish homes has grown 16.2% year on year during the month of July, with an increase of more than 20% in Aragon (32%), Galicia (28.6%), Castilla-La Mancha (27.1%), Comunidad Valenciana (25.7%), Extremadura (23.8%), Castilla y Leon (23.4%), Murcia (23.1%), Islas Baleares (20.4%), and Andalucia (20.9%).
Madrid and Catalonia registered year-on-year increases which were below the national average, with Catalonia only seeing a year-on-year increase of 4.4%. Two communities, Canarias and La Rioja, registered decreases of almost 4% on their year-on-year sales.
In 2008, there were some 552.000 property transactions recorded. If property sales in Spain grow at the same pace for the rest of 2018, it is expected that there will be some 530.000 property transactions this year.
Brits STILL lead the way as most active buyers of Spanish property according to the Statistical Information Center of Notaries in Spain
According to data recently published by the Statistical Information Centre of Notaries in Spain, Brits are STILL in the lead which is comes to the number of foreign buyers active in the Spanish property market in 2017.
Property sales in Spain ground to a halt in 2008 as both Spanish nationals and international buyers reduced their level of activity in the Spanish property marketplace following the onset of the economic crisis in Spain.
However, more than 500.000 Spanish property transactions were recorded in 2017, an increase of around 17% from the previous year. Of those transactions, foreign buyers accounted for almost 20%, a year-on-year increase of more than 14%.
Despite showing a decrease in the number of property purchases made by Brits in the first quarter of 2017, the number of transactions by Brits picked up in the second quarter resulting in the British maintaining the top spot as the most active of all buyers within the European Union (EU) with 14% of the property transactions recorded. They were followed by the French (8.6%), Germans (8.2%), Romanians (6.9%), Belgians (6%), and the Swedish (5.3%).
Outside of the European Union, the Moroccans, the Chinese, and the Russians recorded a good percentage of property transactions with 5.5% (an increase of 36% from 2016), 4.9%, and 3% respectively.
There was also more activity from Ecuadorians (33% increase from 2016), Romanians (31% increase from 2016), Portugese (30% increase from 2016), and Americans (27% increase from 2016).
The Valencian Community is the most popular with foreign buyers of property in Spain with 28% of the total number of property transactions. Andalusia takes second place with 18% or property transactions and Catalonia, despite the political instability of recent months, takes third position with 15% of sales.
Sotogrande is celebrating the return of the World Championship J80 event. The community of Sotogrande boasts a unique positioning between the two continents of Europe and Africa. Thanks to its location and Sotogrande’s prestigious environment, it is the ideal setting for this compelling race. The unpredictable wind patterns and temperamental Mediterranean Sea makes this event a truly thrilling experience, not one that should be missed.
The J80 event is named after the sports boat that competes within this spectacular race. Known as the best-selling boat in Europe, the J80 is a thrilling sports boat, yet is less intimidating than other modern sport boats.
The championship itself attracts over 100 boats, each boat containing 4 or 5 crew members. The J80 Championships have brought together teams from across the globe, including professionals and international Olympic racers.
Overall this is a world-wide covered event, bringing our community sport, passion and media coverage. We encourage for all our clients and followers to check it out.
Sotogrande Grand Prix 5 Day Event
Sotogrande Grand Prix
The luxurious gated community of Sotogrande is gearing up to host the first Sotogrande Grand Prix from the 24th – 28th of May. Over the course of these five days there will be five different spectacular events. Renowned car collectors from around the world will be traveling from Seville, through Cordoba, to Sotogrande. Once they reach their final destination, there will be an array of events, including rallies, auctions, parades and exhibitions of world-class cars ranging from classical cars, luxury automobiles and futuristic models.
These exceptional car models will be displayed in the Sotogrande Marina and La Reserva from Friday the 26th – Sunday the 28th of May. This elegant event should not be missed as it will not only have car enthusiasts excited, but is a fantastic way to kick off the summer here in Sotogrande.
In addition to the exhibitions and parades of world-renowned cars, there will also be a exclusive cultural event that embodies the society of Sotogrande. Displays of fine yachts, polo matches and a show of the beautiful Andalucian horses are additional events that will be adding to the luxurious experience over these exciting five days
US construction firm vows to build thousands of homes in Spain
Lone Star will look to build 3,250 new homes in Spain this year.
Those big, hulking Wall Street investment firms do not make hefty investment decisions lightly.
So it should be taken as excellent news indeed that Lone Star Funds – which first invested in the Spanish construction sector in 2015 – has pledged to ramp up the scale of house building in Spain over the course of the next few years…
Having built 2,000 new homes in 2016, the private equity-backed investment firm is eyeing more than 3,200 new homes a year between now and 2020 in a move that speaks volumes of Spain’s maturing property market.
Between 2009 and last year, bank lending to Spain’s real estate industry fell by 65%. This altered the landscape of the nation’s construction industry to the point where private backing was all but required in order to finance any large-scale construction projects.
For many Spanish developers, this meant they have had to sit it out and wait for more bank or government funds. But these US firms are a completely different beast, analysts say.
“Lone Star’s model is typically Anglo-Saxon,” said Fernando Rodríguez, general director of R.R. de Acuña & Asociados, a real estate firm based in Madrid. “They do their research in minute detail and don’t build unless it’s clear there’s demand today, tomorrow, and in two years.
“It’s what the sector needed and it’s nothing like Spanish developers that used to build whatever, wherever and however many homes they wanted.”
New homes built in Spain numbered 675,000 a year between 1997 and 2006, leading to some 1.4 million properties lying empty during the height of the crash. Many of these homes have now been sold, but a large proportion are likely to remain unsellable, having been built in planned towns or urbanisations that have never materialised. In 2015, just 39,890 new homes were built in Spain.
However, in the country’s more popular regions – the Costa del Sol, Madrid and Barcelona – there is now an acute shortfall of new properties, with demand outstripping supply. Lone Star’s involvement and desire to build a limited number of homes in select areas shows that the company has done its homework, market analysts say.
Sotogrande, the first real estate and leisure destination created in southwest Spain in 1962, welcomes the automobile super-elite to Andalusia in the first event of this kind throughout its illustrious history.
Over five days from Wednesday 24 May to Sunday 28 May 2017 and hosting five major events, southern Spain from Seville to Sotogrande will be home to rallies, exhibitions and auctions of some of the world’s finest classic cars and premium marques from pre-1965 to today. The focus for SOTOGRANDE GRAND PRIX® is on flawless mechanics, exceptional workmanship and exemplary car models that demonstrate engineering brilliance from a bygone age through to the near future.
One of the major events is the SOTOGRANDE RALLY®, a three-day route through Andalusia starting at the Plaza d’Espagna in Seville, stopping over in the heart of Cordoba and culminating in Sotogrande. For those participating in either a timed race or the more casual promenade, the scheduled route will take in some 300 km each day of Andalusia’s most breathtaking scenery, principally along public roads. Celebratory evening events will be held in exclusive secret venues in Seville and Cordoba for drivers and their guests.
The cars will make an eye-catching entrance into Sotogrande as they race the FLYING ¼ MILE® over Sotogrande’s historic Guardiaro River bridge.
A key feature of the SOTOGRANDE GRAND PRIX® will be the SOTOGRANDE SALE® with British auction house, Bonhams, which will include an auction of fine vintage cars and luxury classic car-related memorabilia, fashion and luggage.
The remarkable SOTOGRANDE CONCOURS D’ELEGANCE® will showcase some of the world’s finest cars, with award-winners judged according to the scrupulous guidelines of the International Chief Judge Advisory Group.
Meanwhile a SOTOGRANDE TOP MARQUES® exhibition will display the newest models and premieres from prestigious international car brands against the backdrop of Marina Sotogrande and La Reserva.
On the final day of SOTOGRANDE GRAND PRIX®, about a hundred exclusive and modern GTs will take part in the SOTOGRANDE GT TOUR®. Automobiles built between 1996 and the present day are invited to participate in a breath-taking jaunt of speed and agility, touring through the Andalusian surroundings, and performing different tests on closed tracks.
The SOTOGRANDE GRAND PRIX® is the first extension to the now very well-established and high society ZOUTE GRAND PRIX® which this year hosted its seventh edition at Knokke, Belgium. A major event in the classic car calendar, Zoute – Knokke has steadily gained ground to be one of the finest international automobile events in Europe. ZOUTE GRAND PRIX® has built its reputation as a leading classic car event through working with scrupulous federations across sectors: these ensure authenticity of the vehicles, exactitude in time trials and awards for the finest vehicles nominated by the highest level of the profession.
Marc Topiol, CEO Sotogrande SA, says:
“Following on from major international sailing events and world-class polo, hosting SOTOGRANDE GRAND PRIX® is the next step in the transformation of Sotogrande. This lifestyle and real estate destination is a place to enjoy exceptional experiences and moments, and a place for families and friends to connect and relax. Having a major stretch of Andalusia involved in this fantastic international rally is sensational. Many government bodies and communities are behind this to make it an outstanding event.”
Philippe Van de Ryse, co-organiser for ZOUTE GRAND PRIX®, said:
“Sometimes you don’t need to look very far to find paradise. Of all the places in the world we have visited, Sotogrande is the perfect match.”
Demand for new Spanish homes rises 32.5% in a year
Spain’s real estate sector is beginning to build in greater volumes once again.Spain’s real estate sector is beginning to build in greater volumes once again.
While Spain’s property market remains dominated by resale homes, the new build sector has begun to stir in recent months, with data from the Ministry of Development revealing that, up to and including November last year, the number of building permit requests received was 32.5% higher than for the same period in 2015…
In total, the first 11 months of 2016 saw more than 59,000 building permits granted, which represents the highest 11-month total for more than five years. Compared to three years ago (2014), this figure represents a 72% increase on permits being granted.
For November alone, the figure was 5,934 permits for a new property granted – 25% higher than in 2015 and the highest November figure since 2010.
Altogether, this data suggests that the Spanish housing market is enjoying a balanced recovery, with both the resale sector and the new build sector posting positive figures.
The stable and sustainable growth of the latter sector is particularly encouraging. Prior to the crash of 2008, construction of Spanish property was occurring at breakneck speed, with close to 900,000 new homes granted building permission in 2006 alone.
This pace of development soon proved unfeasible, and it has taken the country more than half a decade to work through its unsold, incomplete or unsellable homes. The situation today is much rosier, with oversupply all but vanished from the country’s more popular property regions such as the Costa del Sol, Costa Brava and the Canary and Balearic Islands.
Spanish home values have risen 10% in past three years
Across Spain, the price of a home has risen by an average of 10.8% since 2014.Across Spain, the price of a home has risen by an average of 10.8% since 2014. Recent analysis of data of the Spanish real estate market from the National Statistics Institute (INE) shows that the average home value in the country has risen 10.8% over the past three years.
In 2016 alone, the nation’s housing price index showed that by the end of the third quarter last year, house prices were an average of 4% higher than during the same period in 2015. This reveals that for each year since 2014 – when prices generally bottomed out – home values have steadily increased by between 3 to 4% per annum…
This encouraging increase in the price of housing in Spain is a direct result – and driver – of rising interest in buying and selling homes in Spain. The recession years between 2007 and the first quarter of 2014 stunted growth and shattered confidence, but since Spain pulled clear of those dark days some 1.2 million homes sold in that period.
A great deal of those transactions have been driven by foreign demand, which contracted only slightly during the recession. But the INE data also reveals another encouraging trend – that of housing starts, ie, first-time buyers getting on to the property ladder.
In 2016, that figure rose above 60,000, and analysts expect a further 67,000 new housing starts this year. A combination of a strengthening economy, increased job security, more attractive mortgages and a property market that is still affordable but showing signs of growth means that the cocktail right now for upwardly mobile young Spaniards is rather rewarding for home investment.
The growth in new housing starts last year was 32% up on 2015, resulting in the number of young Spaniards living in rented accommodation to fall to just 17.5%, the data shows.
Indeed, finding rented accommodation in Spain is becoming increasingly tough – the country has the lowest proportion of homes for rent in any western European country, comprising just 2% of the housing stock of Spain.
Confirmed: Spain’s property market grew a massive 13.6% in 2016
Spain’s property market is in rude health, growing on 2015, strong in all regions, and likely to push up construction activity.Spain’s property market is in rude health, growing on 2015, strong in all regions, and likely to push up construction activity.
The drip-drip of monthly data on Spain’s property market over the course of 2016 painted a picture that was rosier than an English summer garden in full bloom. With each passing month, the news was getting better and better, so it is no great surprise that the end-of-year data published late last week by the government’s central statistics unit shows that the market grew a massive 13.6% in 2016…
This figure is based on actual transaction data of all of Spain’s 17 autonomous regions, and shows that a total of 403,866 homes were bought and sold in 2016.
What’s more, while this number represented a 13.6% increase on 2015, it was also 26.7% higher than 2014.
Perhaps most significantly, however, was the fact that each and every one of Spain’s 17 regions recorded a sales increase. Some soared, others merely climbed slightly, but the trend was 100% positive, and that bodes extremely well for the real estate industry in 2017, as well as the wider Spanish economy.
The largest year-on-year growth in property sales was recorded in the Balearics, which registered 31% more transactions in 2016 than in 2015. Catalunya, Extremadura, Asturias and Málaga also performed well.
Further, 23 of the past 24 months have recorded increased sales volumes, which strongly suggests that the trend is set and 2017 – and probably 2018 – will see similar levels of steady growth.
Another interesting analysis of the data shows that the majority of property sales were resale homes, with new builds comprising just 18.6% of all transactions in 2016. This is the third year in a row that new home sales have fallen, which suggests that there could finally be a shortage of new build properties available for sale in Spain – and that is music to the ears of the Spanish construction industry.