Tag: Fotocasa

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 fotocasa.es.

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 Idealista.com, 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 Fotocasa.es, 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