Tag: maximums

Spain’s Most Expensive Homes are Located on c/Serrano & Paseo de Gràcia

1 March 2018 – Expansión

Two realities in the housing market / The recovery in prices with respect to 2008 is leaving disparate scenes. The gap between the most expensive area of Madrid, on Calle Serrano, and the most affordable district, San Cristóbal, amounts to 61 percentage points.

In the heart of Madrid, on Calle Serrano, a 90 m2 apartment costs around €857,700 (€9,530/m2) on average, 5% less than in 2008. Meanwhile, 16 kilometres south of the Golden Mile, in San Cristóbal, those same 90 m2 cost around €78,300 (€870/m2), 66% cheaper than during the years of the real estate boom. This situation is repeated right across the country, where, in many cases, the housing market is experiencing two realities in the same city. “The current housing market in Spain is certifying the recovery of house sales and reflects that there is still scope to acquire homes at much lower prices than 10 years ago”, said José María Basañez, President of TecniTasa.

Despite the high degree of activity in the sector at the moment, with increases of around 5%, it is not uncommon for people to buy a home now for less than it would have cost in 2008. In 2017, house prices were 35% below the peaks of the real estate boom, according to a Report about housing Maximums and Minimums prepared by the appraisal company TecniTasa. The situation changes as you approach the hot spots of the main capitals. The difference between the most expensive and most affordable areas of Madrid is 61 percentage points, of Barcelona is 38 points and of Sevilla is 54 points. The most affordable homes in the Andalucían capital are found in the areas of Amate/ Pino Montano/Macarena Norte and Bellavista (€990/m2), nevertheless, it is one of the few areas where prices are higher than they were a decade ago (up by 24%). It is followed by La Rambla de Pedro Lezcano in Telde (Las Palmas) where prices have risen by 9.7%; the centre of Orense (5.7%); Las Gándaras (Lugo), where prices have risen by 4.4%, and the historic centre of Toledo (1%).

The fact that the most luxurious homes are still 30% cheaper than they were in 2008, on average – on c/Serrano and Paseo de Gràcia, they exceed €9,000/m2 – and the most affordable homes are still 40% lower – in El Pilar de la Estación (Toledo) and Barrio Guinea (Castellón), they cost around €400/m2 – “is one element to take into consideration when making a purchase decision”, explain sources at the appraisal company.

Original story: Expansión (by I. Benedito)

Translation: Carmel Drake

Anticipa Real Estate: House Sales Could Reach 526,000 In 2018

20 October 2017 – El País

House sales in Spain may reach 526,000 units in 2018, up by 9.3% with respect to the 481,000 operations that are expected to be closed in 2017 (which, in turn, represents 10.1% more than last year), provided financing conditions and the performance of the Spanish and Eurozone economies continue on course. Of that total, the bulk will be replacement homes (upgrades) and just 275,000 will involve the creation of new households. Moreover, the prices of new and second-hand homes will continue to rise with a growth rate of 5.8% during the fourth quarter of 2017 and of another 5% during 2018, although they will still be 23% lower than the peaks recorded in 2007.

Those are some of the findings of a report by Anticipa Real Estate, specialising in real estate management and loans, and belonging to the international fund Blackstone, about the housing market in Spain 2017-2019, which the firm’s CEO, Eduard Mendiluce, presented at the Barcelona Meeting Point conference, together with Josep Oliver, a professor from Universitat Autònoma de Barcelona (UAB), whose team compiled the research.

The increase that is forecast by the company with respect to the minimums recorded in 2013, when just 285,000 transactions were completed, will reach 85% by 2018. Nevertheless, according to Professor Oliver, the market volumes are still 42% below the peaks of 2006, when more than 900,000 private homes were sold.

Other figures that are below the maximums reached in the boom years are the number of finished homes (private and social housing properties) in Spain. The report sets a total of 63,400 units for 2019, compared to 62,900 units forecast for 2017. Although these figures represent a significant increase (more than 48%) with respect to the minimum recorded in 2016 (42,700 finished homes), the volume is 90% lower than the expansion peaks.

In terms of Cataluña, the research indicates that the number of private home sales should amount to around 82,000 during 2017 as a whole (up by 10.8% YoY) and 90,000 during 2018 (up by 9.8%). In terms of prices, they are forecast to increase by 6.9% in 2017 and by 6.1% in 2018. Given that the reduction in house prices was greater in Cataluña than across Spain as a whole (almost 45% compared to 37%), prices in 2018 are still expected to be 27% lower than those of 2007.

Original story: El País (by S.L.L)

Translation: Carmel Drake