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Spanish property prices continue to recover

Tuesday 6th December 2016

Written by Roy Weatherby, The Overseas Investor

Spanish property has been making a steady and continuous recovery for a while now. The latest data from Spanish notaries has confirmed that this recovery is continuing at pace. 
This is particularly important because data from notaries is recorded as soon as a sale completes, making it the most up-to-date information, compared to other sources which may not record transactions until months later when the sale is inscribed.
The notary figures show that the second quarter of the year saw the Spanish market continuing to climb according to key metrics. The number of residential property sales across the country through the second quarter of this year totalled 122,776. In terms of recovery, this means total residential sales were up 13.3% compared to the same period in 2015.
Prices also continued to rise through the second quarter. Spanish property values were up 1.3%, with the average square meter of residential space costing 1,314 Euros.
However, while they certainly confirm the continuation of the recovery, these national average figures only represent a cursory overview of Spain's situation. 
One of the defining features of the Spanish property market lately has been the very significant amount of variation that exists between the different regions of the country, and for the most part this principle is holding true right now.
The greatest levels of regional variation relate to growth in property prices. Many of Spain's most popular coastal regions have been the ones to deliver the most impressive levels of growth. The Canaries have been quite decidedly leading the way with prices increasing by 7.7%, followed by Madrid with an average increase of 4.9%.
Other regions, by contrast, are still seeing prices fall, and in some areas the decreases are really quite dramatic. Navarra has seen prices fall by over a fifth (20.1%), and the situation is even more pronounced in La Rioja where there has been a decrease of 34%.
When it comes to the number of sales, on the other hand, things have been much more consistent. Almost every region has reported an increase in sales. The only exceptions are Navarra and La Rioja, with decreases of 20.4% and 2.7% respectively. Transaction volumes increased across all 15 other regions, with the most marked increases being 27.8% in the Balearics, 25% in Catalunya, and 21.7% in Extremadura.
Unsurprisingly, with transactions on the up across almost all of Spain, mortgage lending also increased in the second quarter of the year. There were 56,815 property loans granted across the quarter, representing an increase of 26% compared to the same portion of the last year. The average amount of loan capital given was also up.
At 130,254 Euros, the average amount of finance given for a property purchase was up 3.5% year-on-year.
*For more information on property investment in Spain, please contact Hopwood House.

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