Four Out of Six Houses Purchased in Spain Last Year Paid in Cash

17/02/2013 – Expansion

According to Beatriz Corredor, chairwoman of the Institutional Relations Department of the Association of Registrars, mainly foreign investors bought dwellings without mortgage financing support.

Among the most active investors in Spain the British stand out, followed by the French and the Russian. Altogether, the foreigners started off about 12.8% of the transactions conducted in the fourth quarter of 2013, compared to the 8.1% score in 2012. The properties acquired are high-quality ones in excellent locations.

As the registrars say, housing prices fell by 1.25% in 2013, which means a considerable slowdown in reference to the 13% noted down in the previous year.

Surprisingly, between October and December 2013, the prices increased by 2.1% in comparison to the third quarter of the year, that makes the second consecutive quarterly rise. This may indicate “a turn in tendency towards stability”.

The Foreigners´Shopping

(…) It is predicted that by the end of 2014 around 400.000 housing transactions will have been closed. (…) In 2013, their number was 329.146, marking 0.48% less than in the previous year. (…) 53.7% corresponded to pre-owned houses (176.921 properties) and the rest (152.225 dwellings) to new homes. Mere 5.25% was made by subsidized houses. (…).

The foreign investment in Spain gains ground and the main target of the non-residents are high-quality properties located in attractive places, that also pushes their prices upwards.

Average Mortgage Amount

When it comes to registered mortgage signing deeds, the statistics present a slight increase in the mean amount of a mortgage during the fourth quarter of 2013, setting the granted amount at €104.487. Notwithstanding, in the middle of 2013 the amount was equal to €100.841 which means a historic record low in biannual terms.

On the other hand, the interest rates remained stable (4.02% annually and 4.06% in the fourth quarter). Along with that, the fixed interest rates oscilate around 6%. When it comes to variable indicators, Euribor constitutes a benchmark in 89% of cases leaving IRPH behind (3,9%).

Original article: Expansión (EP)

Translation: AURA REE