6 July 2015 – Cinco Días
The recovery in the housing market is strengthening with rising sales prices, an increase in the volume of mortgages and a decrease in the number of mortgage foreclosures. In parallel, major transactions are being signed in the market for offices once again.
The official statistics show that house prices increased by 2.65% YoY during the first quarter of 2015 and by 1.88% with respect to the end of 2014 – property prices fell by 31% on average during the crisis -. Furthermore, growth is being seen across all regions, with the País Vasco and the Balearic Islands leading the charge.
Between January and March 2015, 16.2% more house sales were registered than during the period from October to December 2014, and 9% more were recorded than during the same period in 2014. The sale of used homes rose by 23.8% during the first quarter.
Transactions involving foreigners – who are driving the sector – increased by 8.9% with respect to the same quarter in 2014. Certificates for mortgage foreclosures decreased by 4.3% with respect to the first quarter in 2013 and have now fallen by 14% since their peak in 2010. A report from La Caixa says that supply, demand and prices are all adjusting accordingly. The inclusion of Spaniards (as buyers) will happen in due course, supported by the “improved labour market and easing of access to credit” thanks to the ECB’s program and the clean up of the banking sector. There is still a high level of stock to sell and lease, and the market for the construction of new developments is only just beginning to recover. The study warns that we should continue to monitor the market for signs of a possible bubble.
Furthermore, activity is returning to the segments for offices, warehouses and commercial premises. During the first quarter, there was a five-fold increase in transaction volumes with respect to the same period in 2014, say Savills, and four purchases alone amounted to €1,340 million in total.
According to PricewaterhouseCoopers, Madrid is one of the European cities with the best investment prospects; that is reflected in the “surge in capital inflows, which began in 2013 and is not showing any signs of receding”. And the money is coming from all sources, including global funds and tycoons such as Warren Buffet. Spain is a good place to invest.
Original story: Cinco Días (by Carlos Gómez Abajo)
Translation: Carmel Drake
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Source:: AURA Real Estate Experts