The Spanish house price index figures for February 2010 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Spanish property prices fell by 5.5% over 12 months to the end of February, according to the property price index published monthly by Tinsa, one of Spain’s leading appraisal companies. However, prices inland fell by only 3.8%, which is similar to last month’s 3.6%, and confirms a general trend towards smaller price declines. At this rate prices of inland property will be stable or rising again sometime in the next few months.

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or (under)declared selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
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There was a small uptick in Spanish housing sales during the fourth quarter of last year, according to data released yesterday by the Ministry of Housing. Small, maybe, but enough for the Government to get excited about.

Beatriz Corredor, Minister for Housing

“The transactions in the fourth quarter represent a rise of 4.1% with respect to the same period last year, this being the first year-on-year rise since the fourth quarter of 2006,” goes the first sentence, in bold, of the Ministry’s press release.

In fact, if you just look at the ordinary housing market, the uptick was even better. Excluding social housing there were 116,664 house sales in Q4, a rise of 5.5%. Sales in the province of Malaga went up 3.6%. Regrettably, that’s where the good news ends.

Take the year as a whole, there 413,112 transactions last year, a fall of 19% compared to the previous year, and a whopping 46% down on 2007. Even the Q4 was down 33% compared to 2 years ago.

Some regions did better than others. Looking at a selection of regions popular with holiday home buyers, the inland province of Teruel suffered the most in 2009, down 36%, followed by Las Palmas in The Canaries, down 32%. At the other end of the scale, Spain’s two big cities did the best, down just 1.7% in Madrid and 3.9% in Barcelona.

Story by Mark Stucklin

Tags: Madrid, Malaga, Property market trends, Spanish property
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The Spanish house price index figures for January 2010 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Spanish property prices fell by 5.5% over 12 months to the end of January, according to the property price index published monthly by Tinsa, one of Spain’s leading appraisal companies. However, prices inland fell by only 3.6%, which is a mayor improvement on the -6.8% last month, and confirms a general trend towards smaller price declines. At this rate prices of inland property will be stable or rising again sometime in the next few months.

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or (under)declared selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
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The Spanish house price index figures for December 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

The Tinsa property price index for December shows average prices falling by 6.6% over the last 12 months, the same rate as which prices fell in the 12 months to November. So this represents a pause in the trend towards moderating price declines. Last month we reported that, on present trends, prices will be rising again in a few months. Well, not if the latest figures have anything to do with it.

On the other hand, the price of property in the coast, where most foreigners buy holiday homes, did continue its positive trend, with prices down 7.6% over 12 months, compared to 8.9% last month. On a peak to present basis, prices have fallen the most on the coast (-20.8%).

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or (under)declared selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
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The Spanish house price index figures for November 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

As can be seen from the chart, price falls stabilised at around 10% in the first half of the year, and started shrinking from July onwards. On present trends prices will be rising again within a few months. Even the price of property on the coast is falling at a slower rate, narrowing to -8.9% in November, just above what it was a year ago (-8.5%). Coastal property prices have been hit the hardest thanks to the surplus of holiday homes for which there is little market in a recession.

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or registered selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
Posted in Property market | No Comments »

I recently read an interesting interview with Mikel Echavarren, head of Irea, a Spanish real estate consultancy, talking about the state of the real estate sector in Spain. As an experienced professional in touch with many different companies in the sector it is worth listening to what he has to say. Here is a selection of comments from his Q&A with Idealista News, the news section of the property portal Idealista.

Do you think there are any good investment opportunities in Spanish real estate today?
I think so but they are risky. In three years we’ll probably be kicking ourselves for not advising investors to invest now. There aren’t many opportunities in commercial real estate because there isn’t much product and rents haven’t yet adjusted. In residential, on the other hand, the correction has been very strong and fast. The ideal profile now is an opportunistic investor buying properties off banks by taking on the existing debt, a type of real estate venture capital.

So you think there are opportunities in a residential sector because the adjustment has already taken place?
There are hundreds of thousands of possible transactions, but not many genuine opportunities. What there is not is any financing, so anyone who wants to take advantage of this market has to take the debt with the asset, but there are still very few people prepared to do that today.

Has the price of housing and land touched bottom?
House prices touched bottom some time ago, they have already fallen all they had to fall. And the price of land has fallen faster than house prices although it could even fall a bit more. We have been saying at the top of our lungs that the price statistics published by the government are worthless, and damaging to the sector because they give international analysts the impression we are a country of idiots. In the US and the UK prices have fallen around 20% from the peak whilst here we have only fallen by 8%. We work with close to 28 property companies that have been restructured, and you see that valuations are down 30% in 2 years, and then banks buy those assets with discounts of 10-15% off valuations.

Do you think there is any residential property that will never sell?
What there is is a stock of land that will never be sold, at least not in 10 years. There are areas of Spain where the town plans look like they were designed for an invasion of extraterrestrials, parts of Almeria, Murcia and Alicante. There is an overdose of land that will lie in the warehouses of banks for many years. On the other hand, the stock of finished property will be absorbed sooner.

Is there any real demand for housing at the moment?
Yes, quite a few homes are being sold. We would have to place it at more than 200,000 homes a year. What is not selling is off-plan, as there you take the risk of the developer or builder going bankrupt. It’s a good time to buy newly built homes with Euribor at 1.24%. They won’t be any cheaper next year. And when prices start to rise they will do so at a rate of 10% per year.

How does one get the Spanish property sector to recover?
The residential sector is already recovering, just not the developers, who won’t see the light at the end of the tunnel for three years; it is very bleak for them. Clients of ours tell us they have sold a lot this summer, and some banks tell us that they have had more mortgage requests this summer than in all 2009. Furthermore, we believe that developers have dropped their prices to the minimum. There is mortgage financing available, not much, but there wasn’t any at all in 2008, and now there is. Mortgage costs are low, and it appears that the future is not going to get any worse. The recovery is underway, although this won’t show up in the official statistics until the first half of 2010. As soon as there is a general perception that things are getting better, house prices will stop falling and start rising.

Story from Idealista News

Tags: buying property in Spain, Euribor, House prices, Interest Rates, Property market trends, Realistic House Prices, Recovery, Spanish property
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The Spanish house price index figures for October 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Residential Spanish property prices fell by 7.4% over 12 months to the end of October. Nationally, prices are not falling as fast as they were, which may mean the market has touched bottom. It certainly looks that way from the graph above.

This seems especially true for inland property. Prices are down 5.8% compared to a year ago, which is a better performance than we see in some Northern European markets. It’s certainly the smalles price drop in a year, and the lowest fall of all the regions analysed. Of course it’s still early days, but inland property prices may actually start to rise slightly again in the first quarter of 2010.

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or registered selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
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The market for new homes is on the road to a mild recovery, claims the G-14 group of Spain’s leading developers. Sales of newly built homes will continue “consolidating in the coming months” said Pedro Pérez, head of the G-14. Let’s hope this is not just wishful thinking by developers desperate for the market to start mopping up the glut of properties they created.

There is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics. Sales of newly built properties increased by 7.6% from August to September, though on an annualised basis sales were down 20%.

“It’s been comforting to see sales rise for the 5th consecutive month, something that means we can say that the sector is recovering since it touched bottom in April,” Pérez told the Spanish press.

Sales are bouncing back thanks to lower prices and more selective mortgage lending by banks, argue the developers.

The recovery in sales will continue in the months ahead, says Pérez, in part because developers will make “every effort possible” to make prices more attractive.

Tags: Property market trends, Recovery, Spanish property
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The Spanish house price index figures for September 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Residential Spanish property prices fell by 8.3% over 12 months to the end of September. Nationally, prices are not falling as fast as they were, which may mean the market has touched bottom. It certainly looks that way from the graph above.

Then again, this might just be a temporary pause before prices start accelerating downwards again. After all, that’s what has happened to property prices on the coast. After stabilising in July and August they lurched lower again in September, falling 11.5% over 12 months, the highest fall of all the regions analysed.

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or registered selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

Tags: House price index, Property market trends
Posted in Property market | No Comments »

The collapse in Spanish property sales appears to be running out of steam, which is good news of sorts. The latest monthly sales figures from the National Institute of Statistics (INE) show there were 33,694 home sales in July (not including social housing), the biggest monthly sales figure this year, and only 19.6% lower than the same time last year.

Monthly homes sales have in fact been creeping up since April, when they hit a record low of 26,215 in the aftermath of the stock market collapse. As the volume of sales has climbed, year on year sales declines have improved too. On a cumulative basis, however, sales in the year to July are down 33% to 243,000.

For the first time this year, the number of newly built and previously occupied homes sold was almost equal, thanks to a significant improvement in resales, and a slight fall in the number of new homes sold. Historically, and under normal market conditions, resales are bigger than new homes, but since July 2008, and thanks to Spain’s property market crash, new build sales have been higher.

Tags: Property market trends
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