Tag: pisos.com

INE: House Sales Rose By 14% In 2016 To 403,866

13 February 2017 – Expansión

On Friday, official data from Spain’s National Institute for Statistics (INE) certified that 2016 was the year of recovery in the housing sector. In total, 403,866 homes were sold, up by 13.6% compared with 2015. It was the third consecutive year of growth following an increase of 11.5% in 2015 and 2.2% in 2014, and it was the first time since 2010 that the property market exceeded the psychological barrier of 400,000 operations. The cumulative increase in the number of house sales since the last year of the recession in the real estate sector now exceeds 30%.

18.7% of the homes sold and purchased in 2016 were new and 81.3% were second-hand. The number of operations involving new homes decreased by 1.7%, whilst the number involving second-hand home sales rose by 17.8%, with respect to 2015.

At this point, it is worth noting that the INE considers all homes aged over five years old as “second-hand” homes, even if no-one has ever lived in them, something which happens a lot with the stock held by the banks.

“Our expectations were fulfilled during the year, despite the turmoil created by the political uncertainty and other problems, which could have easily delayed the recovery. People buying and selling homes to reposition themselves on the property ladder have driven the boom”, said the Director of Research at Pisos.com, Manuel Gandarias.

More new builds in 2017

In any case, the hegemony of the second-hand market is a trend that may start to reverse this year: “During 2017, we will see new build homes gaining momentum and growing at a faster rate”, said Gandarias.

“House sales will continue growing at a good pace, but new builds will give us more positive data and if financing is maintained at its current levels, increasingly more people will be able to access mortgages”, said Beatriz Toribio, Head of Research at Fotocasa.

The number of house sales grew in every autonomous region in 2016. The highest increases were recorded in the Balearic Islands (31%), Cataluña (20%), Extremadura (18.6%), Asturias (16%), Aragón (14.7%) and Cantabria (13.7%). The Community of Madrid registered an annual increase of 12.2%. Meanwhile, La Rioja (5.7%), Murcia (7.5%) and Galicia (7.7%) recorded lower increases with respect to 2015.

Based on the number of house sales registered, the autonomous regions with the highest number of sales per 100,000 inhabitants in 2016 were the Balearic Islands (1,521), the Community of Valencia (1,478) and the Canary Islands (1,196).

89.7% of homes sold in 2016 were free (unsubsidised) and 10.3% were social housing properties. The number of unsubsidised homes sold increased by 13.5% with respect to 2015 and the number of social housing properties rose by 14.5%, according to INE.

For Fernando Encinar, Head of Research at Idealista, the strong increase in 2016 is “an accolade to the normalisation of the sector, which despite the turmoil in the mortgage market, managed to sell 50,000 more homes”. “Over the next few months, we will see the sales statistics continue to rise, although it is possible that we will see growth rates moderate slightly, driven by higher mortgage rates”, he added. (…) .

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

INE: House Prices Rose By 4% In Q3

9 December 2016 – Expansión

Madrid led the house price rises, with an increase of 7.8%; Cataluña recorded an increase of 6.6%. Price in the Balearic Islands rose by 5.4%.

House prices accelerated slightly during the third quarter of the year, but the differences between the two speeds in the market widened. In fact, only Madrid, Cataluña and the Balearic Islands saw higher than average price rises; house prices in the other fourteen autonomous regions grew by below average.

Specifically, house prices rose by 4% during the third quarter of the year, with respect to the same period last year, according to data published on Wednesday by Spain’s National Institute of Statistics (INE), based on signed house deed figures provided by the General Council of Notaries. As such, the indicator recorded ten consecutive quarters of increases, a trend that will be maintained over the next few months, according to experts.

INE’s data also showed a slight acceleration in prices, with the average rate increasing by one tenth of a percentage point, from 3.9% in Q2 to 4% in Q3. This figure is lower than that recorded during the first quarter of the year (6.3%) and slightly below that recorded during the last two quarters of 2015.

In the context of the overall recovery in the real estate market – which began in the second quarter of 2014 after six years of decreases – new house prices are rising at a rate of 7.3%, more than double the rate of second-hand home price increases (3.5%). That is because the supply of new homes in certain areas is now scarce, which is driving prices up. (…).

By autonomous region

Moreover, the data also showed that the recovery in the housing sector is happening at two speeds, driven primarily by the large urban centres and tourist housing segments. By autonomous region, Madrid led the price increases, with a rise of 7.8%, the same figure as last quarter. In second place, Cataluña accelerated its growth rate by 1.1 points, to reach 6.6%, whilst the Balearic Islands was ranked in third place, with an increase of 5.4%, four tenths higher than in Q2.

These three autonomous regions are the only ones that saw house price rises above the national average and they have one thing in common: they are all keeping their foot on the accelerator and some are even increasing the pressure. As such, the gap is widening between the recovery in the housing sector in the most sought-after areas and in other zones where stock is more abundant and demographic pressure is lower.

At the other extreme, we have Asturias, where house prices remained stable during Q3; Cantabria and Murcia, where prices rose by 0.7% in both cases; and Castilla y León (1.2%).

In summary, we are seeing quite generalised growth, in the sense that prices are rising in 16 regions and twelve of them have accelerated their rates with respect to the previous quarter. (…).

Forecasts

This data shows that house prices are continuing on their upwards trajectory but there is still “a long way to go”, said the Director of Research at Pisos.com, Manuel Gandarias.

In his opinion, the boost in the prices of homes under construction is a good sign, because it confirms the recovery phase. In 2017, we will see a recovery in house sales as well as “in new builds, after many years without any cranes on the horizon”. (…).

Original story: Expansión (by Pablo Cerezal)

Translation: Carmel Drake

INE: Mortgage Lending Reaches 5 Year High

28 November 2016 – Expansión

The month of September 2016 was the best for the residential mortgage market in the last five years. In total, lenders granted €3,018.5 million to borrwers to acquire homes, the best figure since 2011, which represents an annual increase of 12.5%, according to Spain’s National Institute of Statistics (INE).

In total, 26,667 mortgages were constituted over homes, up by 10% compared to September 2015. The average mortgage loan amounted to €113,193, up by 2.2% YoY. The value of mortgages constituted over urban properties in general amounted to €4,848.6 million, up by 3.7% compared with September 2015.

Interestingly, the percentage of fixed rate mortgages continued to gain in popularity during September; they accounted for 30% of all mortgage loans, almost one third of the market, compared with 28.3% in August (…).

These loans “are very attractive for potential house buyers given their current conditions and because they protect borrowers against possible increases in interest rates, such as the rise being considered by the ECB”, said Beatriz Toribio, Head of Research at Fotocasa.

The mortgage lending market has been on the road to recovery for more than two years now and that upwards trend was broken only in July 2016, when lending decreased by almost 15% YoY following a suspension in the inscription of some contracts for legal reasons.

Normalisation of the market

The Director of Research at pisos.com, Manuel Gandarias, expects that, as we head towards year end, “mortgage lending will continue to grow as political stability takes hold and above all, the confidence and expectations of the most solvent buyers rises”. “We have have seen two months of adjusted increases in comparison with what the statistics had previously been showing”, he said. For Toribio, the data shows that “mortgage financing is consolidating as a result of low interest rates and the liquidity that exists in the market” and that “the real estate sector is moving towards normalisation”.

In addition, in her opinion, “in 2016, in addition to a significant increase in the number of loans, we have also seen growth in the average amount loaned as a result of the behaviour of prices, which are recovering in the large cities, such as in Madrid and Barcelona, as well as along certain parts of the Mediterranean Coast.

By autonomous region

By autonomous region, the areas that recorded the highest number of mortgages constituted over homes were: the Community of Madrid (5,086), Andalucía (4,788) and Cataluña (4,631).

Nevertheless, the regions that recorded the highest YoY variations in terms of the number of mortgages granted were: La Rioja, with an increase of 59.6%; the Canary Islands, with an increase of 45.2%; and Cantabria, with an increase of 38.5%.

Finally, the regions that lent the most capital for the constitution of mortgages over homes were Madrid (€772 million), Cataluña (€616 million) and Andalucía (€470.1 million).

Original story: Expansión (by J. M. L.)

Translation: Carmel Drake

Rental Housing Is Booming Following The Crisis

26 October 2016 – El Economista

The rental market, which had never really caught on before in Spain, is now enjoying a genuine boom following the economic crisis. The employment instability experienced in recent years and the inability of people to buy a home in the face of mortgage restrictions have raised the prominence of the rental market in Spain, which now accounts for 15.6% (of the total housing stock), a ratio not seen since 1987, according to the latest data from the Bank of Spain and reported by Idealista. By contrast, the percentage of owned homes has decreased to 77.3%, a figure not seen since 1988.

With this data on the table, it is logical to think that the decrease in owned homes this year will exceed the figure recorded in 2015. Specifically, last year, there was a decrease (in the number of rental properties) of almost 9% from the peaks registered in 2002, when owned homes accounted for 84.72% of the total housing stock.

The increase in demand for rental properties has had a significant impact on prices. After seven years of continuous decreases, which peaked at 25% in some cases, the first increase – of 3% on average – was recorded in 2015. The impact on rental prices was felt most acutely in the country’s ten largest cities, led by Barcelona, where prices rose by 17% on average.

Although the supply has also increased since then, average rental prices have continued to rise and according to pisos.com, they increased by 5.09% during the third quarter of 2016. In this way, the average rental price amounted to €661 in September 2016 for a typical home with an average surface area of 112 m2. In comparative terms, this figure represents a 0.3% increase compared to August. Nevertheless, the YoY increase amounted to 9.26%.

These average increases are symbolic if we focus on specific areas in Madrid and Barcelona, where potential rental clients look for properties in central, prime areas, that are well connected (in terms of transport links). Thus, in the Catalan neighbourhoods of Sant Martí, Gràcia and Sants-Montjuïc, prices are rising by between 12% and 16% p.a..

The real estate market itself is not oblivious to this trend and for this reason, a wave of Socimis are getting reach to focus on the rental housing sector.

For the time being, Fidere and Optimum III are the only Socimis that are actually up and running. Imminent debuts are expected from Alquiler Seguro, with its Socimi Quid Pro Quo, which will have 625 units in its first phase, and Domo Activos Socimi, the cooperative manager, with its portfolio of 1,400 units. The Valencian group Inveriplus, the US fund Blackstone – with Albinara Properties, Pegarena and Tourmalet – and Testa Residencial, with 4,700 homes, are also expected to enter the market.

Original story: El Economista (by Alba Brualla and Cristina Alonso)

Translation: Carmel Drake

Pisos.com: Rental Prices Rose By 5.09% In Q3

11 October 2016 – El Economista

The average rental price in Spain amounted to €661 in September 2016 for an average surface area of 112 sqm, according to the quarterly rental price report prepared by pisos.com.

In comparative terms, this figure represents an increase of 0.3% compared with the month of August and a rise of 5.09% with respect to June. Moreover, the YoY increase amounted to 9.26%.

By autonomous region, the highest rental prices were recorded in the regions of Madrid (€1,040/month), País Vasco (€936/month) and the Balearic Islands (€845/month), according to the report.

Meanwhile, the lowest rents were recorded in Extremadura (€429/month), Castilla-La Mancha (€442/month) and Galicia (€477/month).

Between June and September, the highest regional increase was registered in Cantabria, where rental prices rose by 10.54% and the largest decrease was seen in Asturias, with a decline of 1.03%.

The autonomous regions that recorded the highest increases with respect to the same period last year were the Community of Valencia (15.25%), the Canary Islands (12.75%) and the Balearic Islands (12.67%). No decreases were recorded in any region during the same period.

“The interest in acquiring homes in strategic places with a high return will encourage greedy investors, who are already very active”, said the CEO of pisos.com, Miguel Angel Alemany, referring to this increase in the price of rental homes.

In addition, Alemany said that an increase in the available supply could help to mitigate a possible bubble in the rental market. All of this through “more moderate” prices, he added.

Teruel: the cheapest province

According to the report, Guipúzcoa led the ranking as the most expensive province to lease a home in September 2016, with an average price of €1,090/month. It was followed by Madrid (€1,040/month) and Vizcaya (€936/month).

At the opposite end of the spectrum, Teruel was the cheapest province, with an average price of €372/month. Other less expensive provinces included Ciudad Real (€376/month) and Cáceres (€392/month).

The province that saw prices rise by the most during the third quarter was Huesca, with a 12.82% increase in rental prices, whilst Córdoba was the province that saw prices decrease by the most (-6.08%).

Nevertheless, in YoY terms, the province where rental prices increased by the most was Guipúzcoa (20.98%) and the province where rental prices decreased by the most was Burgos (-4.99%).

Barcelona: the most expensive provincial capital

By provincial capitals, the study named Barcelona as the most expensive provincial capital for tenants, with an average rental cost of €1,425/month.

Madrid was ranked in second place, with an average price of €1,405/month during the third quarter of the year. It was followed by San Sebastián where the cost was €1,301/month.

Meanwhile, Teruel was ranked in last place with an average price of €387/month.

Other cheap provincial capitals included Lugo (€405/month) and Ávila (€410/month). Tarragona (19.22%) recorded the highest QoQ increase, whilst the highest QoQ reduction was seen in Palencia (-5.67%).

On a YoY basis, Girona (20.80%) led the ranking with the highest increase in prices and Pontevedra (-4.55%) was situated at the opposite end of the table.

“If this upward trend in terms of rental prices continues, it will become increasingly difficult for tenants to find homes that they can afford”, said sources at pisos.com.

Original story: El Economista

Translation: Carmel Drake

Tinsa: House Prices Rose By 2.4% YoY In September

10 October 2016 – Expansión

House prices are rising at a strong pace, residential sales are recovering and mortgages are coming back, timidly, along with cranes. The residential market has left its worst years behind it and is setting itself up for a robust recovery, without any signs of the excesses that created the real estate bubble.

Statistics published on Friday confirm that the wind is blowing in the right direction for the real estate sector. The average value of free (unsubsidised) homes grew by 2.4% YoY in September, according to Spain’s largest property appraiser, Tinsa. The cumulative increase in prices during the first nine months of the year amounts to 2.9%.

At the same time, sales of unsubsidised homes also rose in August by 19.9% YoY, driven by the strong performance of the second hand segment, which accounted for 82.8% of the market, according to INE. The number of operations involving new homes rose by 3.3%, whilst the number of second-hand home sales rose by 24.6%.

In August, 35,501 residential properties were sold, up by 7.3% compared to July. The cumulative increase during the first eight months of the year amounted to 14.8%.

Nevertheless, the experts warn that “the monthly variation, albeit positive, is not sufficiently high following the decrease registered in the previous month”, said Manuel Gandarias, Director of Research at Pisos.com. Why? Because in the house sales figures registered in August included operations outstanding from July, due to a Supreme Court ruling regarding late payment interest, which means that the increase should have been greater. “In September, we will also see quite a bulky increase”, added Gandarias.

“The crisis has left a two-speed real estate market and the behaviour of prices and sales will continue to be very uneven”, warned Beatriz Toribio, Head of Research at Fotocasa. The autonomous regions that have seen the highest increases in house sales are the Balearic Islands (49.2%), Cataluña (+41%) and Navarra (+38.1%) Meanwhile, Murcia (-5.2%), Galicia (+4%) and the Community of Madrid (+10.4%) recorded the lowest increases. “The worst is behind us in Cataluña, Madrid, the Balearic Islands, the Canary Islands and most of the Mediterranean Coast, but the outlook is not nearly as encouraging in the rest of the country”, said Toribio.

According to Tinsa, prices are growing by more in the Balearic and Canary Islands (+4.4%) than in the rest of Spain, although they are followed very closely by the Mediterranean Coast (+4.3%). In the major cities, prices rose by 2.5% in September. “The worst is behind us, but the recovery will be slow”, summarised Toribio.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Investors Now Account For One Third Of Home Purchases

9 September 2016 – Expansión

Barcelona, Madrid, Valencia, Zaragoza and Málaga are experiencing a mini boom in the purchase of homes for rent, thanks to the appreciation of property prices and significant growth in rental prices.

The recovery of the residential market has once again sparked investors’ interest in property, thanks to the high returns that they offer (in the form of rental income) and the expectation of significant and consolidated price rises (appreciation in value). So much so that investors now account for one out of every three homes purchased in Spain’s major cities, according to data from Tecnocasa.

Barcelona is leading the investor boom; there, 40% of homes sold are intended to be let out. That means that just 60% of the buyers acquiring a home in the city actually plan to live in it. Barcelona is followed by Valencia, where the percentage of homes being sold for their subsequent rental amounts to 37%. Madrid is the other major city where individual investors – primarily, although not exclusively – account for one third of the real estate cake, specifically 32%.

The average in Spain amounts to 26%. The other three major real estate parks in Spain – Zaragoza (28%), Málaga (25%) and Sevilla (22%) – also move in this range.

Why are we seeing this mini boom in property investment? The answer is simply: because residential properties are currently offering an average rental yield of 4.7%, and that rate increases to 10.9% if we add the gains resulting to the rise of property prices, according to official data from the Bank of Spain. These figures are extremely appealing, especially compared to the returns offered on public debt (0.987% yesterday), deposits (0.2% in July) and the stock market (-15% in August).

This has led to a mini boom of investors who have found refuge in the residential market, where the risks are low and the returns are tangible. “In fact, the new investors include lots of retired people who are using income from these investments to supplement their pensions”, said José García Montalvo, Professor of Economics at the University of Pompeu Fabra.

Moreover, rental prices are rising significantly in the major cities. In August 2016, it was 14.8% more expensive to rent a flat in Barcelona than it was 12 months ago. In Madrid, prices increased by 7.5% during the same period. “Nevertheless, rental prices cannot continue to rise at such a rapid rate”, warns García Montalvo, because “although rental prices have decreased significantly since 2008, the income (of tenants) has also decreased”.

The most sought-after areas for tenants and those that have resisted the real estate crisis the best are the most attractive for investors. In fact, according to Manuel Gandarias, Head of Research at pisos.com, “the highest price rises are being seen in areas that suffer from a lack of high quality product…”.

So, is now a good time to invest? “House prices are increasing significantly, but for the time being, rental prices are rising in unison, which means that investors can obtain returns”, said García Montalvo. But this train will leave the station sooner rather than later. (…).

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Pisos.com: House Prices Rose By 1.3% In Q1 2016

5 July 2016 – El Economista

The average price of second-hand homes in Spain amounted to €1,555/sqm in June, which represented an increase of 1.3% compared with December 2015, according to data from pisos.com, which show that the housing market experienced “good health” during the first half of the year.

Nevertheless, according to the CEO of pisos.com, Miguel Angel Alemany, citizens should continue to make a “significant effort” to become home owners, above all, at the beginning of operations due to the amount of savings that they require to cover the non-financed part of their purchases and the additional costs associated with property acquisitions.

“Monthly mortgage payments are more affordable than they used to be”, confirmed Alemany, indicating that fixed rate mortgage are providing borrowers with “more piece of mind” as they are able to enjoy fixed mortgage instalments for the duration of the repayment period. “Although Euribor is negative, fear of a possible increase in that reference index has made people much more cautious”, he added.

By autonomous region, the Community of Valencia (+4.49%), Galicia (+4.14%) and Aragón (+4.10%) recorded the highest price rises during the first half of the year, whilst the most marked price decreases were registered in País Vasco (-2.91%), Cantabria (-2.48%) and Andalucía (-1.82%). Meanwhile, the most expensive region in June 2016 was the País Vasco (€2,740/sqm) and the cheapest was Castilla-La Mancha (€952/sqm).

Original story: El Economista

Translation: Carmel Drake

INE: Mortgage Signings Rose By 15.9% In February

28 April 2016 – Expansión

The signing of new mortgages to purchase homes increased by 15.9% in February, up from the 10.6% increase recorded in January, but well below the rises seen in years gone by. In total, 24,887 mortgage contracts were signed, according to the provisional data published yesterday by Spain’s National Institute of Statistics (INE).

Experts in the sector point to a slight slowdown in the recovery, given that although the data is positive and growth remains in the double digits, it is significantly lower than the rate of growth recorded just a year ago, according to Fernando Encinar, Head of Research at the real estate portal idealista.com.

In the same vein, Beatriz Toribio, Head of Research at fotocasa.com, notes that we have seen a moderation in the growth of mortgage lending in Spain in January and February, and that this has come despite the broad and competitive range of mortgage products that the banks are offering. Nevertheless, Toribio points out that we have now seen 21 consecutive months of increases “and that tells us that mortgage lending is now normalising in our country”.

In her opinion, for the real estate sector to recover completely, the lending figure has to be consolidated because without financing, there will be no recovery.

Meanwhile, the Director of Research at pisos.com, Manuel Gandarias is more optimistic. He thinks that “the annual variation will continue to grow in a significant way, and if it does so throughout the next quarter, then we will be talking about continuous growth in mortgage lending for two consecutive years”.

During 2015, and so far in 2016, the number of homes purchased using financing has grown stronger as a percentage of the number of total purchases to account for three out of every four acquisitions.

The value of mortgages constituted over homes in February amounted to €2,699.2 million, up by 14.4% compared with the same month in 2015 and by 9.7% compared with the previous month. This type of loan, for the acquisition of homes, accounted for 54.2% of the total in February. One of the main findings to emerge from INE’s data relates to the interest rates being applied to loans.

Original story: Expansión

Translation: Carmel Drake

Pisos.com: Buyers Offer 23% Below The Asking Price

27 January 2016 – Cinco Días

Data is regularly being published about the rise in the number of house sales, how the fall in property prices is being mitigated, the gradual return of credit to the market and the impact of the overall economic recovery as the driver behind the real estate market overcoming the crisis. Nevertheless, the online portal Pisos.com has gone a step further by cross-checking information about the prices that purchasers are willing to pay and the asking prices being set by vendors; and they are checking the differences between them (…).

In its study, which is based on figures from 2015, the real estate portal notes that the differences between asking prices and offer prices have decreased in line with the improvement in the labour market (as soon as job destruction came to a halt, house sales began their timid recovery) and the relaxation of conditions to access finance.

This alignment of positions has been made possible thanks to the fact that house prices now seem to have bottomed out, at least in the majority of regions, “and buyers’ budgets have increased, thanked to increased savings and the return of credit to the market”, explain sources at Pisos.com.

In this way, during 2015, the average house price in Spain amounted to €138,150, whilst the most sought-after home (by buyers) cost €112,500 on average and had a surface area of 90 m2. The portal understands that the difference between these amounts, i.e. €25,650, represents the difference that currently separates demand and supply, which is equivalent to 23% of the most sought-after price.

Pisos.com has been performing this cross-check of supply and demand since 2009 and in its study, it shows how the relationship has evolved during the crisis and the start of the recovery. In 2009, the difference amounted to 55%, which is explained to a large extent by the sharp decline in the number of house sales; the transactions that did materialise were accounted for with a sizeable discrepancy.

Since then, the positions have moved towards each other to narrow at 20% in 2013. Nevertheless, in 2014, they increased again, to 25% and then last year, that gap moderated slightly to the aforementioned 23%. The evolution varies by region, which is to be expected in the housing market. (…).

Starting prices

Prices in six autonomous regions increased, namely: Andalucía, Aragón, the Balearic Islands, Galicia, Navarra and País Vasco. The highest average asking price is still found in País Vasco, at €232,500. At the other end of the spectrum, citizens in Murcia, Valencia, Castilla-La Mancha and the Canary Islands searched for homes with a average price of €67,500. Navarra is the only autonomous region where the price that buyers are willing to pay exceeded the asking price. The autonomous regions in which asking and offer prices were the closest were: Cantabria (9%), País Vasco (9%) and Cataluña (12%). By contrast, the largest differences were found in Murcia (where the difference still amounts to 39%), Asturias (37%) and La Rioja (36%).

In terms of other variables in the market, such as the number of transactions and the evolution of prices, the General Council of Notaries published its study yesterday, which showed that (house) sales grew by 14.7% YoY in Q3 2015, following their significant growth in the previous quarter (16.8% YoY). Moreover, the notaries highlighted that all of the autonomous regions, with the exception of Navarra, contributed to this result. (…). Meanwhile, prices grew by 2.7% YoY during the same period, just below the rate of growth seen in the previous quarter (3.6%). (…).

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake