Spanish Property Sales still increasing
According to data provided by the General Council of Notaries, property sales in Spain increased by 19.6% in the first half of 2016. 225,551 transactions were recorded by the end of June. The increase was driven by resale properties at a ratio of 10 resale properties for every New-Build home.
Almost half of all purchases (45%) were financed by mortgage loans. However, the Ministry of Public Works noted that the completion of New-Build homes dropped by 8%. Just 17,771 sales were registered in the first half of 2016; over 1,500 less than the previous year.
Approved requests for restoration/renovation of homes increased by 2%. Over 10,500 licenses were granted between January and May this year.
Figures recently released by Fotocasa, a large property portal, show a 0.6% increase in property values across Spain. Murcia region is still one of the cheapest areas to buy property, coming almost bottom of the table for prices. Currently, property values in the region are still 50.4% below their all-time peak of 2008.
Also according the MoPW, the amount of unsold new homes has fallen for the sixth consecutive year. In 2009 there were 649,780 unsold properties across the country. That figure has now reduced to 513,000. Many banks are now offering generous mortgage rates on the present overhang of remaining homes as the best locations are already picked over.
We are pleased to announce we have signed a deal with a new mortgage lender, recently arrived in Spain. They have very acceptable conditions and can offer up to 110% loans to value on any property subject to valuation. Equity release and re-mortgages for home improvements are also now an option.
Since my last column in which we identified a slight slow-down in client enquiries, mostly due to the 14% devaluation of the pound against the Euro, things have certainly changed, with September now brimming with viewing trips and October looking likely to be even busier than last year. Many clients in the past few weeks have revealed their reluctance to buy properties in France, Turkey and other usual sunshine destinations due to the on-going fears of security. Whilst this is a sad situation for many people affected, it appears Spain still maintains its excellent reputation for holidays and lifestyle changes for house hunters.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173