End of Property Speculation, Return of Home For Living

30/04/2014 – Cinco Dias

Information provided to the Association of Property Registrars is priceless. Especially, when it is piled up and shows a really interesting statistical picture.

During the golden times of real estate boom, overhelming numbers of houses were being sold. Some defended that it has not only occured as a result of cheap mortgages and excellent economic situation but was also due to Spain´s being the main tourist destination.

At the whirl of housing price spiral upward movement, the proportion of houses owned per each household post 1.45. There have been years that even the Stock Exchange could not compete with returns given by a house sale. Numerous transactions sometimes did not bother of property registration. However, they were ought to be declared in case of “an investment component” involved.

Yesterday, the Association published its Property Registry Statistics Report which shows that in 2007 more than a half of the houses (56.2%) were registered at least five years before their acquistion, while last year they performed a meagre 26.8%.

In parallel, the number of homes that remained in possession of the same owner for more than 10 years (briefly, the owner lived in there) rose significantly from 19.90% in 2007 to 33.22% in 2013.

The main responsibles for the phenomena are the arrival of the recession and consequent difficulties in selling the property. Average possession time increased from 7 years and 4 months in 2007 to 9 years and 10 months noted down last year (by 34.09%  more). Property speculation is not devoid of risk anymore.

 

 

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: AURA REE

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