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How to understand the housing sector in Spain?

Last year an average of four percent increase in sales of properties in Marbella and throughout Spain year after judging, the property market is in a phase of expansion. However, these positive signs can not remove all doubt out of the way, whether it is a stable and lasting or just the beginning of a new housing bubble recovery anyway.

In a recent article published in the Spanish newspaper El Mundo of property experts and professor Gonzalo Bernardos (University of Barcelona) he reiterated its view that the sign of a sustained price increase in real estate in the long run stood very well.

This specialist his statements on the fact that the current market is still far from reaching the level of 2008, is based housing bubble burst led below. Compared to the situation in which the time is in turn so as to relatively stable growth.

the increase in real estate prices in Spain

This four main reasons for the increase in housing prices is established and why the risk of another housing bubble short and medium considered is very low. First, it is due to low real estate prices, relative to inflation, the purchase price is almost identical to that in 2002, or half as high as during the peak of the crisis in 2007. On the based on that forecast an increase of twelve percent in property prices in the 2016th year.

As the second reason why he calls the new funding opportunities. In 2008, banks returned to their taps money for mortgages because they were sitting on billions in bad loans.

The increase in mortgage loans in Spain by 28 percent

After intensive restructuring banks are now able to pay and are quite capable of granting loans and advances, rising by 28 percent in this sector it shows in July. The announcement of the European Central Bank that the quantitative contribution of liquidity for the MMF increase will be considered as a reason for the increased willingness to invest in real estate.

Thirdly the above services Bernardos point is the fact that investment in real estate is the most attractive of all investments. This is helped by the fluctuation of stock prices and interest rates low and fixed deposits an average return of 3.5 percent for rental properties and golf in Marbella in another capital gains.

In addition, increased demand for property at present seems to prevail in Spain. It was normal Spanish before owning a property, but in recent years, many people decided to rent a house or apartment, as the prospect of a bank loan was zero. Instead, wait and watch the market. The fact that the Spanish economy is now recovering, are obtaining loans and credit more easily, and the lowest prices to make these things the reasons for an extension of the real estate market.

All this in recent years where the growing interest in luxury real estate in Marbella, especially in popular areas Nueva Andalucia, Puerto Banus and the Golden Mile. Foreign investors are very present in this market. So along with the recovery of the entire sector of the national economy, we believe strongly in a market long-term stable housing this year. The 2016 Spanish real estate market: a good plan to invest?

We have a large selection of high quality houses in  sale in Spain in 2016, which promise a high potential for value creation and growth capital. Please contact us for a personal consultation with Ignacio Acosta Sorge.

Recent developments in the Spanish property market

According to Eurostat, the Statistical Office of the European Union, which recently released data for the last quarter 2015, which are the property prices in Spain rose by 4.3% last year.

This increase is well above the euro zone (2.9%), but also between Sweden (14.2%), Hungary (10.3%) and the UK (7.1%). In 2016, analysts expect a constant, though not particularly strong recovery.

Particularly strong was the increase in prices of Mallorca. Here is Palma, the capital of the Balearic island, the second most profitable city in Spain for rent of residential property.

The return by investing in residential property has increased from 5.3% in the first quarter 2015 to 5.7% this year. To this end, buying and renting of various properties were used.

The most profitable real estate properties are used commercially. Buying commercial space brings today a gross yield of 7.7% – in 2015, there was 7.2%. Office space today we bring a return of 6.9% (6.7% in 2015). Renting garage has become more profitable: from 4.5% in 2015 to 5.6% in 2016th

As for households, the city of Lleida (a city of 140,000 inhabitants in the western autonomous region of Catalonia) with 8% of the most profitable, followed by Palma de Mallorca 6.5%. Third is Las Palmas, the capital of the island of Gran Canaria. Spain’s capital Madrid to 5.5%, profitability slightly ahead of Barcelona (5.2%).

The Spanish bank has more than 2,000 coastal SAREB (Mediterranean coast, including Murcia, Alicante, Catalonia, Andalusia and the Balearic Islands). Properties on the market (only 800 in the province of Castellón) you want to sell next summer.

The offers are for all budgets: from 32,000 euros for a one bedroom apartment in Alicante to 13.5 million euros for a luxury villa of the 16th century in the center of Palma de Mallorca. .

Especially in Mallorca (and not in Ibiza, where are rented mostly) wealthy buyers looking for luxury real estate. These come mostly from abroad and maintained in search of holiday homes.

The Spanish real estate market increased in 2015

There are emerging first improvements in the Spanish property sector, which can be seen in the sales of real estate and housing, stabilizing prices and increasing construction of enlargement.

Mid-2013 were the first purchases in the Spanish real estate sector are observed after the explosion of the housing bubble in 2007. The major investors in the recent recovery, foreigners and small investors, medium-sized cash.

In the first quarter in 2015 were made in Spain real estate transactions worth 2,463 million euros, half of which with foreign capital. Since early 2014 it had increased again in the Spanish market, the interest of foreign investors. In 2014, foreign funds in Spain have acquired real estate loans worth 16,284 million euros.

The values of 2015 and make 35% of the investments made in 2014 throughout the year in Spain, from. This represents a threefold increase compared to the first quarter of 2014 the largest proportion here, according to a report by Cushman & Wakefield investments in the retail sector.

Investors rely on investing in different Spanish cities

With a share of 70%, investors are mainly based on investments in areas in major Spanish cities, especially in Madrid and Barcelona.

Commercial areas, offices and shopping centers are the focus of investment property in Spain

The shopping centers are located in property investment in Spain particularly prominent. 2013 Spanish real estate sector generates around 7,000 million euros, of which 2.500 million were generated by the sale of shopping centers. The sale of the center “Blue Island” in Madrid for 232 million euros is one of the most prominent examples.

Experts agree cincodias.com estimated in 2015 at historically high levels of investment and therefore the previous maximum amount of real estate transactions worth 12,000 million euros in 2007, can still be improved.

The Spanish property market is dominated by foreign investment

The sale of housing in Spain is dominated by foreign investment. Since 2007, the Spanish real estate market virtually stopped, but in early 2014, foreign investment funds have begun to put pressure on prices in the Spanish property market. Wanted is mainly the construction sites of large cities sold by the government and banks. What houses the Basque Country where they are one of the most expensive areas of the country?

The seller pisos.com Spanish property line runs from a slight stabilization of housing prices since 2014. The current quarterly report (March 2015) points out, however, that the average price of housing in Spain has fallen 1 January 29% in December 2014. compared to 2014, the price has fallen -7.20%. The average price per square meter of apartments in Spain amounted to 1,538 euros according pisos.com.

The most expensive region is the Basque Country, which stands out from the cheapest of Castilla-La Mancha by a difference of 1,900 euros per square meter.

In addition to the Canary Islands of Spain Madrid is the only autonomous community in which an increase in prices was recorded at 0.25%.

Seal housing demand in Spain comes from foreign tourists

Increased foreign demand for housing is clearly a tourist reference. In the third quarter of 2014, international buyers accounted for 13% of all recorded transactions. The pioneers are British, with a share of 15.77%, followed by France (10.11%) and Russians (8.08%); German buyers have a market share of 7.53%.

Where property specialists speaking cautiously recovery. Spanish experts real estate note that the recovery process in the housing sector and the Spanish construction will slow, partly due to continued uncertainty in the Spanish economy and the Spanish labor market.

Even from the platform fotocasa.es Spanish online real estate is reported that still needs to speak with caution by a break of the trend, and loans from banks and improved labor market occupy key positions in recovery Spanish real estate sector.

Now is the right time to invest in the Spanish property sector

And in September 2014 it was for reading in cincodias.com an interview in which experts predict for transactions owned by the German company AWM of a recovery in the Spanish property market.

The argument is based on the fact that after five years of recession with a sharp drop in prices, an economic recovery is clear and now has access to funding, which was not the case until 2013. The conclusion is that the Spanish property market is one of the markets where investments should be made and it was the right time to do it.

The exact process of buying a property in Spain, find described in the article “Practical aspects of purchasing real estate in Spain” in the Mariscal Abogados website.

Since the real estate crisis is not evenly distributed geographically, showing a higher contribution from investment opportunities interesting regional Mariscal in Spain.

Drafted: AV

Word count: 2038

Main sources:

 

prestigeproperty.co.uk/MarbellaPropertyForSale/Properties

paradisemarbellarealty.com/blog/641-properties-for-sale-in-marbella-11/

irishtimes.com/life-and-style/homes-and-property/court-ruling-sparks-marbella-planning-chaos-yet-again-1.2442053

ifindmarbella.com/market-report-2015-full-version/

Secundary sources:

everythingoverseas.com/24/12/2015/my-best-advice-20-property-professional-reveal-their-2016-house-prices-predictions/

 

costablog.com/average-property-prices-costa-del-sol/

costadelsolinvestor.com/2015/11/positive-overview-and-forecast-for-marbella-property-market-based-on-q1-q2-real-estate-sales-data/

michael-moon.com/en/blog/2016/06/28/marbella-property-market-post-brexit/

Contribution of reader: know about how they are driving the property market in Marbella and all the country Spain.

Post Author: sorgeignacio

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