This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
Monthly, annually, whichever way you look at it, the Spanish property market had a good month in August (at least by recent standards).
The Spanish property market grew robustly in August, according to the latest figures from the National Institute of Statistics (INE).
Excluding social housing, there were 39,250 house sales in August, up 1pc on July and 26.6pc on the same month last year.
As you can see from the chart above, the market is clearly recovering from a bottom last year, and the second half of the year could be the best since 2007.
In particular, resale properties had a good month in August, with sale up 34pc compared to last year. New build sales were up by a quarter.
The following table shows sales and rates of change in the year to August over the last 4 years.
Despite growth of 12pc this year, the market is still 24pc smaller by transactions than 2008, and 45pc smaller than 2007.
Assume that prices have fallen 20% since 2007, and that means the market is down 56pc by value compared to 2007. August may have been a good month for sales by recent standards, but the Spanish property market is still worth less than half what it was just 3 years ago. That has big implications for the Spanish economy.
And finally, the following table shows you the change in selected regional markets in the year to date. Barcelona is doing best, up 44pc on the same period last year, and Las Palmas in The Canary Islands is doing worst, down 15pc.
adiep says:
in my opinion, very very unlikely that last year was the bottom. UK houses are just starting another round of falls, US are still falling, Ireland the same. Banks are not lending and northern european home owners are not taking out equity from their properties to fund the purchase of holiday homes. Spains biggest market of buyers (UK) is about to move into unprecedented levels of austerity and rapid job losses – especially in the public sector.
I suspect we’ll see that number of transaction halve in 2011 to 20k a month.
Mark says:
Adiep, a bold forecast. I wouldn’t rule it out, but I think it is unlikely.
adiep says:
Though, throwing out a caveat, if interest rates start to shift around, we could see all sorts of mayhem.
tim says:
We bought our villa in 2006. At the time we looked at the incomers areas where lots of foreigners live and though them way too expensive. We subsequently bought in spanish spain and values seem to held up OK ish.
Would not have the confidence to buy now even if I worked for the govt. which thank god I no longer do.
Adiep is insightful. Add in increases in interest rates and there would be decimation of that section of the middle clases who have over extended into buy to let, holiday homes etc.
decimate the middle classes at your peril. Can’t see interest rates going anywhere for a while.