residential Market News: Spanish Real Estate Intelligence

Tax Breaks Granted to Luxury Development on Lisbon’s Avenida da Liberdade
15 March 2019 The Lisbon City Council approved a proposal to exempt luxury residential buildings on Avenida da Liberdade from IMI and IMT. The proposal, worth an estimated two million euros, has the aim of exempting the company "Liberdade 203 Investimentos Imobiliários, SA" from the Municipal Tax on (IMI), in the amount of about 115,800 euros, and Municipal Tax on Real Estate Transfers (IMT), amounting to more than 1.9 million euros. While the measure passed with a majority of votes, the BE, the PCP and the PSD questioned whether such subsidies are still justified. Original Story: Diário Imobiliário / Lusa Summary / Translation: Richard Turner  
Licensed and Completed Buildings Up by 18.5% and 16.1% in 2018
15 March 2019 The number of buildings licensed for construction increased by 18.5% to 22,000, while the number of completed buildings rose by 16.1% to 15,000 in 2018, compared to the year before, according to the National Statistics Institute (INE). In 2017, the increase had been 9.9% and 22.1%, respectively. The market has swung wildly in the years during and after the financial crisis. Licensing fell by 22.7%, while the number of completed buildings fell by 26.7% in 2013. In 2017, completed buildings rose by 22.1%, while the number of licensed building increased by 18.5% last year. 40.4% of the total number of completed buildings (both new and existing) were located in the northern region of Portugal, along with 39.1% of new, completed dwellings. Completed buildings in Lisbon account for 11.6% of the total in 2018. Original Story: Diário Imobiliário / Lusa Summary / Translation: Richard Turner  
A Couple with an Average Salary in Porto Can Afford a €160,000 Home
18 March 2019 A couple living in Porto and making the average salary of €160,000 would be able to afford a home measuring just 74 square meters. That figure drops to 52 square meters in Lisbon, according to ComparaJá.pt. The lack of available residential properties and the accompanying increase in housing prices has led to difficulties for Portuguese families looking to acquire a home. The analysis was based on the buyers’ income, a 20% down payment, a mortgage covering the remaining 80% of the acquisition value, and a 2.9% APR. Data from Pordata (2016) was used to calculate average salaries, and average prices were compiled using data from Casa Sapo, Idealista and Imovirtual for two and three-bedroom homes (per square meter). Original Story: Dinheiro Vivo Summary / Translation: Richard Turner