Rents In Spain Have Fallen An Average Of 267 Euros Per Month Since 2007

13/08/2014 – El Economista

The average rent has gone from 810 euros in 2007 to 542 euros in 2014

The price of rented homes in Spain has fallen by an average of 267 euros since it reached its maximum price in May 2007, according to the latest analysis by the property portal

On that date, renting a home cost an average of 810 euros for an 80 square metre flat and in July 2014 the average rent was around 542 euros. This reduction in the price of rent, of 267 euros, is equivalent to a fall of 33,1% in seven years.

By autonomous regions, Aragon is where the largest fall in the price of rent is recorded. Specifically, it has dropped to 502 euros in six years, compared with the 868 euros which it cost before.

This means that, since then, the price has dropped 42,2%. There have also been significant reductions in rental prices in Cantabria (37,9%) and Valencia (37,7%).

On the other hand, Castille-Leon is the region which has seen the smallest decline in rental prices in these last few years. The average reduction in the region has been 83 euros (15,6%), since reaching the maximum price in 2008.

On that date, renting an 80 square metre home cost 532 euros and in July 2014 the average rent was 449 euros. Next on the list are the Basque Country (17%) and Extremadura (18,7%).

Original article: El Economista
Translation: Aura REE

The Sale Homes Increases 8,8% In June

08/08/2014 – Expansión

The sale of homes has increased by 8.8% in June compared with the same month in 2013, reaching a total of 26.076 transactions, due to the boost of the second hand market, according to an announcement today by the Spanish Statistical Office (INE).

It is the fourth increase in a row after those experienced in March, April and May, when the sale of homes rose more than 22%, 5% and 5,4%, respectively, putting an end to ten consecutive months of year-on-year declines.

The figures published by the Spanish Statistical Office (INE) relate to sales recorded on the property registers based on deeds of sale from the months prior to that of the data.

Looking only at month-on-month data (comparing June with May), the sale of homes declined 7,3%. As for the year-to-date total (from January to June against the same period in 2013), a drop of 5,4% has occurred.

The year-on-year growth in the sale of homes has been due to the 17,4% increase in the sale of second hand homes, which have reached 16.257 transactions. On the other hand, the sale of new homes declined at a rate of 3% year-on-year, to 9.819 transactions.

The combined total, the number of homes registered as being transferred on the property registries (based on deeds of sale already finalised) in the month of June was 125.817, which represents 8,8% less than in the same month of 2013. In the case of the registered sales of homes, the number of transfers has reached 56.250, which represents an annual increase of 5,9%. The autonomous regions of Navarre, Aragon and Castille-Leon have the most activity. In June, the total number of transferred homes filed on the property registers for every 100.000 inhabitants reached the highest amount in Navarre (566), Aragon (536) and Castille-Leon (512).

The autonomous regions which have registered the highest inter-annual changes are Navarre (27,1%), the Balearic Islands (11,4%) and the Basque Country (10,9%). On the other hand, the one which has shown the lowest increases is Castilla.

Despite the improvement, analysts warn of the dangers of being overly optimistic. The head of studies at, Fernando Encinar, believes that this data “could lead to false expectations among sellers”, being based on a comparison with 2013 which was the worst year in the real estate sector.

Encinar believes that this data “could generate a greater resistance to lowering prices”, when the statistics also show a fall of 7,3% month-on-month after fewer homes than ever (9.819) were sold in June.

Meanwhile, the head of studies of, Beatriz Toribio, explains that the recovery of the property market will be slow and modest, given that although sales are slightly increasing and the fall of prices is slowing down, credit remains very limited and the labour market situation is still very complicated, which constrains the demand for homes from private individuals.

Original article: Expansión
Translation: Aura REE

Six Indicators in Favour of Recovery of the Spanish RE Market

16/07/2014 – Expansion

Below, we list the six indicators proving rise in sales, stabilization of prices and growth in construction. Also, tendency on the market becomes more and more clear: first the demand goes up, then the price slump slows down and finally, the supply starts to increase.

However, experts call for cautiousness and remark the process will progress at a snail´s pace due to economical and labour instability still haunting the country.

Indicator 1: Pretty Optimistic Figures Published by the National Institute of Statistics (INE): Housing sales climb a 5.4% YOY in May

Purchase of homes jumped up by 5.4% in May (compared to the same month in 2013) and it was the third consecutive month of upwards inclination (in March it grew by 22% and in April by 5%) after ten months of an abrupt drop-off. The improvement should be mostly assigned to resales.

Namely, 28.124 transactions took place in May. 90% of the units were free and 10% subsidized. New homes made 38.7% of the total, whereas 61.3% corresponded to the exisiting stock.

In opinion of Beatriz Toribio leading the Research department at, the data confirms that “the market went stable and regains the pulse“.

The May year-on-year rebound was felt in all Spanish regions except for Castille-La Mancha (–15.2%), Galicia (–6.0%) and Madrid (–5.5%). The biggest jumps marked the Balearic Islands (+33.1%), Navarre (+32.9%) and Cantabria (+30.4%).

Indicator 2: The Ministry of Public Works: 48.4% More Houses Purchased in Q1

The latest information concerning sales and published by the authority shows a robust upsurge in sales (+48.4%, 81.358 transactions) in the first quarter of the year juxtaposed with Q1 2013. However, one must remember that the Q4 2012 and the Q1 2013 were exceptions due to cancellation of the property purchase relief and rise in VAT.

Indicator 3: Foreign Investors Buy by 27.2% More in Q1

The interest of foreign purchasers in the Spanish property market shot up over the past years. Specifically, they acquired by 27.2% more homes than in Q1 2013 and in total accounted for 19.4% of all sales.

When it comes to nationalities, the British led with (13.8%), followed by the French (10.5%), Russians (8.4%), Germans (7.5%) and Belgians (6.9%).

Indicator 4: The Second Major Growth in Construction in Eurozone

Another datum provided by Eurostat referes to new construction in Spain which advanced by 4.8% in April and thereby linked 6 months of uninterrupted way up. This was the second best score both in the European Union and in the euro-zone (average of 0.8% monthly).

The highest monthly increases were registered in Slovenia (+6.7%), Spain (+4.8%) and Portugal (+4.5%), while the sharpest declines were seen in Poland (-5.4%), Romania (-4.7%) and Slovakia (-2%).

In comparison to the previous year, Spain leads in the ranking with a 53.4% appreciation, then goes Slovenia (+48.8%), Hungary (+27.2%) and Poland (+13.3%). On the other side there position: Portugal (-9%), Romania (-6.8%), Slovakia (-5.1%) and Italy (-5%).

Indicator 5: Tinsa: Slump in Prices Screeches to 3% in June

Housing values continued to slow down over the month of June until stopping at 3% YOY (in May it showed 4%).

Specifically, Tinsa-designed IMIE General indicator says the correction post 39.7% since the 2007 peak and settled at 1.378 bps (August 2003 level). The agency claims the fall will halt near to zero at the end of the year.

Indicator 6: Sociedad de Tasación: Houses Cheapen by 2.3% in Q2

New and existing home prices averaged at 1.328 Euros per square meter in the second quarter of 2014, meaning a 2.3% depreciation in regard to Q2 2013. Although the values keep sliding down YOY, they do it in a much smoother manner.

Moreover, compared with the first quarter of 2014, dwellings got more expensive by 4.5%.

Beatriz Toribio, head of Research department at claims it is too soon to portend any change in tendency or the end of adjustment. For her, lending and job market improvement are the key. “Banks do not relax lending and as we have seen, the new mortgage approvals went back again in April. This happens because large majority of the buyers are foreigners or small-medium size investors with equity”. “Without financing, the property market won´t recover”, she concludes.

Manuel Gandarias says “these are good news but we should watch the future sales performace which will firmly prove the stabilization and sustainable growth”.

Original article: Expansión (by B. Amigot)

Translation: AURA REE

Real Estate Portals: Spanish Market Rallies

10/07/2014 – El Economista

According to reports by and the National Institute of Statistics (INE), house purchase went up by 5.4% year on year, contributing to the rises registered in March and April, giving the first reliable signs of recovery.

Moreover, the study by shows that in May the prices fell the least over the past three years, by 5.3% juxtaposed with the 11% of May 2013. Beatriz Toribio, the research head at, reckons the economic outlook for the sector improves, especially if the positive tendency observed in the last months taken into consideration. The upturn influences the prices which slow down their steep way down.

As per the data of INE, in May existing home sales increased by 16%, while new houses depreciated by 8% year on year. Toribio assured that the Spanish market offers pockets of opportunities at the moment, due to having lost over 40% since the peak values. What is more, used dwellings require less tax-paying than the new units.

Also, real estate transactions started to progress year-on-year in 15 regions. However, Toribio warns it is too early to speak of turn in the tendency or the price correction end. Finally, she claims the property market will not recover until the lending, employment and work stability step in.

In turn, the director of research at, Manuel Gandarias, remarked that May was the second month with the sales advancing since April 2013 and, according to him, the sector is stabilizing.


Original article: El Economista

Translation: AURA REE

Fotocasa: One in Three Owners Decides to Buy a Better House

23/05/2014 – Cinco Dias

Real estate portal has surveyed its webpage users who have acquired a house for their own in the last year. They were asked what pushed them towards this decision.

While usually in the improving economic circumstances young people are seeking independency in buying an apartment, this time changing the current dwelling for a better one played the main role. Thus, 27% of the purchasers sought a better dwelling in terms of the size of the house, the neighborhood it is situated in or the furniture in the house, as well as whether or not the apartment had a terrace.

However, the response has not been registered in equal frequency in all Spanish regions. In Catalonia, 34% of buyers decided to improve their living conditions, followed by the inhabitants of Madrid (33%), the Basque Country (31%), the Valencian Community (30%) and Andalusia (29%).

Another reason for a house acquisition was to gain independency or to start living with a partner (20% of the respondents). In 19% of the cases moving was provoked by the family size enlargement.

Likewise, 12% of the surveyed bought a second home, out of which 3% of respondends did so because of getting separated, another 3% because of change of their job and 2% due to the family size reduction.

Beatriz Toribio who designed and carried the questionnaire out comments “official data registered in the real estate sector over the past months shall be mostly assigned to investors and foreign tourists´activity. There were very few Spanish buyers who could afford a purchase of a house due to the recession and lack of lending.”

Another part of the survey reveals why the Spaniards in majority still opt for being owners rather than tenants. 47% last-year buyers claim they acquired the house “because it is a long-term investment and a nice way to own some real estate”. Another 35% claims they decided for the move because the housing prices came back to normal.

Still, 23% of the questioned owners thinks that renting a house is a waste of money as the property will never be theirs. Another 21% assures that purchase is an excellent way to invest in the family´s future as a house is an undeniably desired asset to inherit. 17% of respondents reckons it is also a way to save for the retirement as pensions go down more and more. In turn, 12% considers purchase of a house a refuge value in case of life hardships.


Original article: Cinco Días (by Raquel Diaz Guijarro)

Translation: AURA REE