Tag: capitals

Tinsa: House Prices Rose by 5.4% in April

7 May 2018 – Eje Prime

House prices are continuing to rise unabated. Finished home prices (new and second-hand) rose by 5.4% in April compared with the same month last year, driven by rises in the capitals and large cities, which saw price increases of 8.7% with respect to April 2017, according to Tinsa’s index.

On average, house prices have now risen by 10.3% since the minimum level reached at the beginning of 2015, although they are still 36.7% below the peak of the boom recorded in 2007. Prices along the Mediterranean Coast were the most severely hit during the crisis, given that they have recorded a cumulative decrease of 45.8% since their maximum level.

That region is followed by the cumulative decreases in prices in metropolitan areas (42.8%) and, despite having seen an 18.6% increase in their value since May 2015, prices in large capitals are still 36.6% below their 2007 levels.

The capitals and large cities are still continuing to perform the driving role in terms of the reactivation of the market, together with the metropolitan areas and the Balearic and Canary Islands, where prices have risen by 5.7% and 5.6%, respectively.

Original story: Eje Prime

Translation: Carmel Drake

Tinsa: House Prices Rose by 3.6% in January

6 February 2018 – El País

House prices rose again in January, in both the new build and second-hand segments. Overall, prices increased by 3.6% with respect to the same month in 2017, according to the appraisal company Tinsa. But the average increase across the country was well below the figures seen in the capitals and large cities as well as in the Balearic and Canary Islands, which recorded the highest price rises of the last 12 months in January, with increases of 5.1% and 4.1%, respectively. In metropolitan areas, the rise amounted to 3.2%, whilst along the Mediterranean Coast, house prices increased by 3%. In small towns, the increase amounted to just 0.9%.

Although average prices in Spain have recovered by 7.6% from the minimum levels reached during the crisis, they are still 38.3% below their maximums of 2007. In fact, the values registered in January place the price of finished homes at June 2013 levels. With respect to the historical maximums, the evolution of the residential market is still slow, in particular along the Mediterranean Coast, where prices are still 47% below their peaks.

The cumulative decrease in metropolitan areas as well as in capitals and large cities is also still above the average, at 43.3% and 39.7%, respectively. The Balearic and Canary Islands are the regions that have performed the best since the crisis, recording a cumulative decrease of 24.1% over the last 10 years, followed by small Spanish towns, with a cumulative decrease of 36.2%.

Original story: El País

Translation: Carmel Drake

Tinsa: Appraisal Values Rose By 3.6% Across Spain In May

7 June 2017 – Expansión

The appraisal value of homes rose by 3.6% in May, according to the appraisal company Tinsa. This increase was primarily due to the good times being enjoyed in the sector in Spain’s major cities and provincial capitals, which saw price rises of 6.1%. This shows that the most populated areas are the regions experiencing the greatest buyer impetus, which are, in turn, boosting the main residential sub-markets, above all in Madrid and Barcelona.

“Prices are rising a lot, it’s true”, said José Luis Ruiz Bartolomé, Partner at Chamberí AM. “The rises are being concentrated in certain areas in which there is a risk of the market heating up again because there is little land. It is already happening in Madrid and Barcelona”. But, is there a risk of a bubble? “Not yet”, he answers.

Sources at Tinsa agree, given that its latest forecasts show that house prices will rise by 2% this year, according to Jorge Ripoll, Direct of Research at Tinsa, who recently spoke to this newspaper.

Each month, the IMIE index, which is calculated on the basis of house appraisals performed by the company, reflects the YoY variation in the value (per square metre) of residential properties and its level with respect to the year 2001 (base 1,000). The 1,387 points in the general index reached in May “reveal that the average price in Spain has returned to its December 2013 level”, according to data from the appraisal company. If we compare this with the previous cycle, before the outbreak of the crisis, house prices now are equivalent to those last seen in September 2003.

After the capital cities and Mediterranean Coast, the YoY growth seen in the Balearic and Canary Islands (2.9%) also stands out. The two island regions were the forerunners of the recovery, but now they are experiencing moderate growth rates, which indicates that they could be close to reaching their cruising real estate speeds.

They are followed closely by smaller towns (+2.2%), which are grouped together in the Index into a category that Tinsa calls “Other towns”. Meanwhile, the metropolitan areas saw prices remain relatively stable compared to May 2016, recording just a slight decrease of just -0.3%.

House prices are still reducing the gap generated since the end of 2007. The cumulative price decrease still amounts to 39.2%, according to Tinsa’s statistics. On the Mediterranean Coast, the area that has been hit the hardest over the last 10 years, the cumulative decrease still amounts to 45.6%, just one point higher than in the metropolitan areas, where prices have fallen by 44.5% on average since their peak. In the capitals and major cities, the cumulative decrease amounts to 41.3%, just above the national average. Homes on the Balearic and Canary Islands have depreciated by 27.7% over the last ten years and those in other towns have fallen by 35.9%.

Inflationary fears

But, even though prices in the residential market are still well below the levels seen during the bubble, inflationary fears are returning. “Players are afraid of coming last and there is a shortage of land, so property developers are buying up plots so as not to miss out”, said Ruiz Bartolomé (…).

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Tinsa: House Prices Rise By Most In Madrid & Barcelona

18 July 2016 – Expansión

The Balearic and Canary Islands are featuring in the housing recovery, but Madrid and Barcelona are leading the way; there, the number of transactions has picked up pace and prices are growing strongly once again. Most of these increases are due to the economic recovery, but the savings factor is also playing a major part.

In fact, the influence of private investors is still playing a crucial role in the strengthening of the two major real estate regions, whose central districts are the most sought-after by companies and individuals, both Spanish and foreign.

It is precisely the influence of these investors that boosted property prices in both capitals in the first place, firing the starting gun for the reactivation of the sector, as they committed to the prime areas before anyone else. These central districts, which are well-connected and offer good services, used to offer a certain degree of security for investors, and a great deal of potential for appreciation, even when everyone in the market was still searching for land.

Both cities were amongst the leaders of the increase in house prices during the second quarter of the year, according to data from the appraisal company Tinsa, published recently. Nevertheless, these increases were concentrated in some of the most expensive areas, as shown by the analysis by district of the local markets. Specifically, many of the neighbourhoods where prices stand at around €3,000/sqm in Madrid and Barcelona are also those where prices have risen by the most in the last year, whereas prices in those neighbourhoods that fall below the average have grown more moderately.

For example, prices in the Madrilenian neighbourhood of Salamanca have risen by 9.8% in the last year, whilst in Chamberí they have increased by 8.9%. Meanwhile, in Barcelona, the following districts stand out: Gràcia (where prices have risen by 12.7%), El Eixample (10.9%) and Les Corts (8.1%). These statistics show that the prime areas are recovering better than the rest. They are central, well-connected areas with very solvent demand, where returns are high and there is significant retail activity, which means they have significant potential for appreciation both for those buying to invest as well as those looking to put their properties up for rent. As with everything, there are notable exceptions, such as the Retiro area in Madrid and Sarrià-Sant Gervasi in Barcelona, which are increasing by below the average.

Other areas

Nevertheless, the real estate expert José Luis Ruiz Bartolomé indicates that the real estate market has now entered a new phase, in which the recovery is spreading to more and more areas. “Before, properties were only being sold in the best districts, but now the increases have spread to the most popular areas, as supply is limited and there are increasingly more buyers looking for homes to live in, rather than to buy as investments”, he explains.

For this reason, the most popular neighbourhoods have become more attractive with the recovery of the labour market and the opening of the bank financing tap. In this way, house prices in the Madrilenian neighbourhood of San Blas have risen by 9.9%, making it the second highest price rise district in the capital; meanwhile, Sant Andreu is also boosting prices in Cataluña, with an increase of 8.2%. Similarly, prices in all of the districts of Madrid that cost less than €2,000/sqm have increased by more than the average, with the exception of Villaverde, the cheapest of all, where prices have remained stable. Something similar is happening in Barcelona where the most popular areas, such as Nou Barris and Sants-Montjuïc, also grew by more than average. (…).

Moreover, Tasaciones CBRE indicates that the profile of investments funds “has evolved rapidly from being opportunistic to value-added, choosing instead to back development, the renovation of properties and, given that they have perceived the potential for refurbishments, they will gradually start managing plots of land in urban areas, with the aim of obtaining higher returns”. With this, the increase in demand and prices will increasingly move to more remote areas. (…).

Original story: Expansión (by Pablo Cerezal)

Translation: Carmel Drake

Idealista: Rental Prices Rose By 4.3% In Q1 2016

12 April 2016 – Idealista

The price of rental housing increased by 4.3% during the first quarter of 2016, taking the price per m2 to €7.40/m2/month, according to a report published by Idealista. In YoY terms, the increase amounted to 5.2%.

For Fernando Encinar, Head of Research at Idealista, “on the basis of the data in the report, it is clear that there is a huge demand for rental housing and that the supply is rising strongly. Unlike in the market for house sales, monthly rental prices are increasing in a general and uniform way across the whole country, which means that the segment is growing in a robust and stable way”.

“Moreover, at Idealista we have found that in certain markets, primarily, major capitals, the pressure of demand is so great that adverts are appearing on our database for just a few hours…(…)”.

By autonomous region

All of the autonomous regions recorded higher rental prices than three months ago, with the exception of Euskadi (where they decreased by 4%). The greatest increase was recorded in the Balearic Islands, where prices rose by 11.2%. That was followed by increases in Madrid (5.2%), Valencia (5%) and Cataluña (4.7%). By contrast, the smallest increases were observed in Extremadura (0.3%), Cantabria (1%), Canarias (1%) and Castilla La Mancha (1.2%).

Madrid (at €11.5/m2/month) is still the most expensive autonomous region. It is followed by Cataluña (€11/m2/month), the Balearic Islands (€10/m2/month) and Euskadi (€9.6/m2/month). At the other end of the table, the most affordable autonomous regions are: Extremadura (€4.1/m2/month), Castilla La Mancha (€4.4/m2/month) and La Rioja (€4.9/m2/month).

By province

Rental prices also increased in 38 provinces over the winter. The highest increase was recorded in the Balearic Islands, where prices rose by 11.2%. Significant price increases were also recorded in Valencia (6.7%), Pontevedra (5.9%), Huelva (5.5%) and Madrid (5.2%). Meanwhile, the largest decreases were registered in Tarragona (-8.6%), followed by Vizcaya (-6.1%) and Cáceres (-1.8%).

The ranking of the most expensive provinces is led by Barcelona (€12.6/m2/month), Madrid (€11.5/m2/month) and Guipúzcoa (€10.2/m2/month). Jaén is the most affordable province for renting a home, at €3.7/m2/month. It is followed by Cáceres and Ávila (€3.8/m2/month in both cases).

By capital city

Valencia is the capital city where rental prices rose by the most in Q1, with growth of 8.8%. Significant rental price increases were also recorded in Santa Cruz de Tenerife (7.5%) and Palma de Mallorca (6.5%). At the other end of the spectrum is Bilbao, where owners are now asking 5.8% less to lease their homes than they were 3 months ago. That was followed by decreases in Ávila (-3%), Tarragona and Jaén (-2.8% in both cases).

Barcelona strengthened its position as the most expensive capital (€15.2/m2/month), followed by Madrid (€12.9/m2/month) and San Sebastián (€11.7/m2/month). Meanwhile, the most affordable capitals were Lugo and Ourense, with prices of €4/m2/month and €4.3/m2/month, respectively.

Original story: Idealista

Translation: Carmel Drake

Madrid & Barcelona: Drivers Of The Housing Mini-Boom

4 January 2016 – Expansión

The housing market is now in full recovery mode, driven by the improving labour market and access to credit. House prices rose by 1% in 2015, which represented the first year of positive growth following seven years of decreases. Specifically, the average price per square metre increased by 1% between Q4 2015 and the same period a year earlier, according to Tinsa’s Local Markets Index. This put an end to the decreases seen following the burst of the real estate bubble during which time house prices decreased by 40.7%, compared with their levels in 2007.

According to Tinsa’s report, this 1% increase was driven by a miniboom in the large urban markets of Barcelona and Madrid, which accounted for the majority of the overall upward swing, together with other smaller cities such as Badajoz and Ávila. Thus, the Catalan capital recorded a 8.7% increase, whilst prices in Madrid rose by 3.8%. Significant increases were also registered in Badajoz (5.7%), Ávila (4.3%), Ciudad Real and Cuenca (3.3% in both cases) and Palma de Mallorca (2.2%).

According to the experts, several factors have led to the relatively sharp rise in house prices in these areas, such as the decrease in the volume of stock and the increase in demand. On the other hand, these areas have fewer remaining unsold homes, which means that demand is pushing prices up much more quickly. Unsurprisingly, Madrid is one of the most liquid markets in Spain, according to Tinsa, since it only takes 7.2 months, on average, to sell a home in the province, compared with 10.2 months for Spain as a whole. In addition, Madrid and Barcelona are both highly attractive areas, with demand from overseas savers and other citizens moving from the rest of Spain and overseas to work in the two cities.

Both areas have also seen a marked adjustment in terms of prices in recent years. In 2007, locals in Barcelona used to have to spend 36% of their average incomes on mortgage repayments, making it one of the most expensive cities in Spain; now, they have to contribute just 22% of their salaries, in line with the national average. In Madrid, that figure is one point lower (at 21%) and it only takes 5.3 years of salary to acquire an average home there, compared with 5.9 years for Spain as a whole.

Nevertheless, this is not the case in all of Spain’s large capital cities. Valencia recorded timid growth of 0.6% in 2015, whilst prices in Sevilla fell by 0.3%. The decreases amounted to 1.6% in the case of Bilbao, to 4% in Zaragoza and 6.7% in Murcia, still heavily affected by the surplus stock.

The striking variations between Spain’s major capitals is also reflected by the marked differences that exist between the different types of market in Spain, given that the majority of the country is still experiencing price decreases, or at best, price stability. That is one of the reasons why Tinsa prefers to talk about “a trend towards price stabilisation, which will be consolidated over the coming year”, rather than a general upturn in prices. (…).

Original story: Expansión (by Pablo Cerezal)

Translation: Carmel Drake