Housing Investment Soared in First Half of 2014

The amount invested in Spanish housing in the first half of 2014 rose 31 percent from the same period a year ago, the first rise in the market in three years.

Excluding social housing, buyers invested €22.3 billion in housing, compared to €16.98 billion a year earlier, according to new data from the Ministry of Public Works (Fomento).

The value reflected total home sales of 164,368 in the first half of the year, Fomento reports. Resales accounted for €18.6 billion, a 35 percent increase from a year earlier, and new build homes generated €3.7 billion, up 14.2 percent.

Madrid generated the largest chunk of sales, accounting for €4.3 billion in market value, followed by Catalonia (€4 billion), Andalusia (€3.9 billion) and the Valencian Community (€2.7 billion). The Canaries market was worth €1 billion, and the Balearics €957 million.

Other data supports the Fomento findings. In July, home mortgage activity jumped 28 percent, according to a report from INE. A recent report on Barcelona from Amat Immobilaris found that foreign buyers are playing a key role in sales, accounting for more than 50 percent of purchases in some areas.