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.
BBVA, Spain’s second biggest bank, argues 2014 was the year the Spanish housing market bottomed out, and 2015 is the year the recovery gets underway, giving seven reasons for optimism:
2.Falling unemployment: according to the national employment survey (EPA in Spanish), employment grew by more than expected. Specifically, in the last quarter of 2014 the working population grew 1 per cent, not counting seasonal effects, compared with the previous quarter while unemployment fell again for the seventh consecutive quarter. Therefore at the end of 2014 the Spanish economy had 425,000 more jobs than at the end of 2013.
3. Growing consumer confidence: December had a higher proportion of consumers who thought the economic situation would improve over the next 12 months.
4. Increasing household income: data from the third quarter of 2014 show, for the second quarter running, a growth in household income.
5. Falling mortgage spreads: another drop in interest rates continues to boost the recovery of demand fundamentals. In November, the mortgage interest rate associated with new purchases was 2.72 per cent, 0.15 points lower than the previous month, and almost a point lower than at the start of 2012. Coupled with falling house prices, that means improving housing affordability.
6. Improving confidence in the housing sector: during December 2014 the residential construction climate index recovered the ground lost in the previous month and, in year-on-year terms, the index closed the year with a rise of 17.2 per cent compared with the close of 2013.
7. More building activity: the latest data for new-build licences show that housing starts were adjusted in November which will not stop the total of building licences for 2014 exceeding the previous year’s.
Campbell Ferguson says:
Remember that this year sees many elections in Spain. Beware release of ‘convenient’ stats by Govt and its supporters and ‘delay’ in release of ‘inconvenient’ ones. What is your personal experience and listen to your ‘gut feeling’.
In the best locations and the best properties there is activity and competition lifting values, but in the less popular places and/or poor quality property, things will be very slow unless they are being sold at ‘gift’ prices. Even then, why should there be growth when the banks are selling the one next door with 100+% mortgages and their strength of marketing. Buy to occupy and not to make profit. Buying and selling costs of 20+% will prevent that anyway for some years yet.
Jane Breay says:
And let`s not forget the strenghtening of sterling which may have the power do more than all of the above!
Turo says:
I don’t think that sterling -euro rate has that much to do on whole Spanish housing market. It can cause local variances in regions popular by Brit’s. If you know, please advice what persentage of house buyers are from UK.
DBMarcos99 says:
Since the economy is alreadynow growing (and expected to grow 2.7% in this year), and the number of home sales is rising (point 1), it could well be that the property market has turned the corner. The effect of lower oil prices and a more competitive Euro can only help the Spanish economy grow further. However prospective buyers should be aware that rentals are still at a low level – so if you’re only planning to stay in an area for a few years then purchasing a property doesn’t make too much sense yet.