Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
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.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
The domestic resale housing market is dominated by cash buyers, according to a new report by Tecnocasa – a mass-market chain of estate agents covering most of Spain. This has big implications for property prices.
55pc of resale transactions handled by Tecnocasa in Q1 were cash only, reveals its latest report on the market. Cash-buyer dominance is a clear sign that prices have fallen low enough for the mass-market to function without mortgage financing.
Cash-buyers also reflect the fact that mortgage financing is still scarce. Without credit turbo-charging, vendors can only ask what buyers can afford to pay out of savings.
Other market figures from the Q1 Tecnocasa report:
[list]
Resale house prices fell 19.4pc in 2012, with a peak to present fall of 54pc
House prices fell 2.8pc compared to the previous quarter
More than half the homes sold in Q1 cost less than €100,000, with the exception of Barcelona, where it was €150,000
58pc of clients were first time buyers, and 57pc were between 22 and 44 years old
The average mortgage value was €99,346, down 14.6pc in a year, and 47pc since the peak
Spanish property investors return
20pc of purchases in Barcelona and Madrid were made by investors looking for yields of 5pc or more, according to an analysis of Tecnocasa data by the university Pompeu Fabra. The investor proportion falls to 16pc at a national level.
Lower house prices, scarce mortgage financing, and poor returns on bank deposits are making residential housing an increasingly attractive investment for Spaniards with cash, explains Professor José García Montalvo, who oversaw the research. “Middle class rental housing now delivers a yield of 5pc to 6pc,” he told the Spanish press.
Everything you need to know about property in Spain
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