House Purchase Slump Hampers in 2013

12/02/2014 – Cinco Dias

 It has been more than five years since the real estate bubble burst. The last three years witnessed continuous fall in number of operations within the sector. But in 2013 the drop-off smoothened significantly compared to the recession years. Last year was marked by the end of tax benefits for new house purchase and and a serious cut in prices.

Housing sales went down by 2.2% comparing to the pervious year, to 311.414 transactions. In 2012 and 2011 the loss showed 11.5% and 18.1% respectively. Does it mean that the prices have hit the bottom?

One of experts, José García Montalvo, says that (…) “we have been observing slight changes since September and now it seems the real estate market´s revival is imminent, also due to the foreign investment”.

Another specialist in the market, Santiago Carbó, claims that “the price adjustment has completed in the higher demand and luxury property areas and new construction projects appear there. However, the optimism could be premature as still there are many dwellings  in less attractive zones”.

During the recession, the worst years in terms of sales were 2008 and 2009, where the transactions dimished by 24.9% and 28.6% respectively. In 2010 the performance was by 6.3% better.

In 2013, the new house sales in regard to the previous year fell by 6.8% to 145.241 transactions, while the pre-owned – rose by 2.2% to 166.173 operations.

88.8% of all dwellings transferred last year were of free-market type, while 11.2% represented subsidised homes. In general, the sales of the first declined by 1.2% in 2013, while of the second by 9.6%.

During 2013, precisely 686.097 pieces of land have been sold (1.4% less than in 2012), out of all registry entries (1.633.693 units).

83.8% of the sales above in 2013 applies to urban land (and houses) and 16.2% to rural land. In case of the first, sales shrank by 2.7% in 2013, whereas the other´s showed appreciation of 5.6%.


Original article: Cinco Días

Translation: AURA REE