Housing Update July 2016

Spanish Property Market - Murcia Tops The Table!

Yet again we are pleased to announce that the Murcia region recorded the largest property sales increase!

From March 2015 to March 2016 there was an impressive 27% surge compared to the previous year. Better still, in the first quarter of 2016, Murcia again is top with an impressive 43.5% of growth and again topping the list of regions.

The house price index register, published by the National Statistics Institute recorded the largest increase in property prices since the last quarter of 2007. This represents eight consecutive quarters of growth - proving Spain is now one of the best regions of Europe to invest. In the first quarter of 2016, the average national property price increase was 6.3%! Madrid and the Balearics recorded the highest increase in values at around 8%, whilst Murcia was one of the lowest price growth areas with 1.8%.

Further proof that Spain's economy has turned the corner came with the good news that bank foreclosures had plummeted by over 30%. New-build property is in great demand, especially as the banks are now prepared to offer up to 80% finance and in some cases up to 110% on repossessed developments. From the gloomy days of 2008, when Spain's banks were charged with disposing of some 2 million new and resale unwanted repossessions, that figure is now down to 492,000 and predicted to be at under 360,000 by the end of 2016.

If you've been waiting to put your property on the market, now is a good time to take advantage of the growing momentum, especially as the competition is reducing due to strong sales.

Kenneth Whettall
Commercial Director
Fuente Alamo Real Estate/Murcia Coast & Country
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Tel 0034 968 598 173