Demand for Spanish property coming from at home and abroad
Growing demand from homes in Spain from domestic and foreign buyers boosted the property market in Spain although prices have fallen slightly.
The activity is regarded as good news for the recovery of the country’s real estate market with sales buoyant
According to the latest figures from the Notaries Association in Spain, sales increased by 19.5% in March compared with the same month in 2016.
But the new homes market is not doing as well, with the figures showing that sales of new builds were down by 11.5%. Apartment sales were up by 20.5% and family homes up by 15.6%.
Overall prices fell by 1.3% to €1,277 per square meter, driven by a decline of 6.2% in the price of single family homes of -6.2%, while apartment price remained unchanged. However, when subsidised housing is excluded, the average price of a flat sold in March rose by 0.3%.
‘The notaries’ housing market figures are the most timely we have, and show that the recovery in sales continues unabated, though the average price shows little enthusiasm for getting off the ground,’ said Mark Stucklin of Spanish Property Insight.
‘Bear in mind the average price disguises wide regional variations, with prices surging in hot markets like Barcelona and the Balearics, whilst continuing to decline in large parts of the Spanish interior,’ he added.
He also pointed out that a recent study by the appraisal company Euroval reveals that prices are now back to where they were in 2004, whilst sales are half what they were that year. ‘There is still plenty of room for recovery, which is not to say it will continue,’ he said.
Meanwhile, figures from the land registry show that home sales increased 28% year on year in March, a significant rise from the 3% recorded in February. The growth was led by a 31% rise in the Costa Dorada, followed by a rise of 29% in Barcelona. However, sales fell by 4% in Las Palmas in the Canaries.
‘It’s important to bear mind that the INE’s figures are based on sales inscribed in the Land Register, not actual sales that took place in the period. As such they lag the market by about two or three months,’ Stucklin said.