Ministry Of Development: The Housing Market Moved €36,390M In H1

10 October 2017 – El Mundo

The private housing market in Spain moved €36,390 million during the first half of 2017, which represents an increase of 21% compared to the same period in 2016, when the figure amounted to €30,020 million, according to data published by the Ministry of Development.

In this way, the monetary value of transactions involving private homes in Spain is maintaining the upwards trend seen over the last three years. In 2016, the figure amounted to €60,837 million, which represented the highest level since 2010, but which was still well below that peak (€80,782 million).

The more than €36,000 million that was moved in the residential real estate sector during the first half of 2017 corresponds to 254,816 transactions involving private homes that were bought and sold between January and June, up by 18% in YoY terms. Specifically, second-hand homes moved €32,477.4 million (up by 22%), whilst the volume moved by new build sales was much lower, at €3,912.5 million (+15.2%).

Madrid was the autonomous region that recorded the highest volume of private home transactions between January and June, at €7,803 million. It was followed by Cataluña (€7,451.9 million), Andalucía (€5,849.1 million) and the Community of Valencia (€3,976.4 million). Next in the ranking came the Balearic Islands (€1,988 million), País Vasco (€1,845.7 million), the Canary Islands (€1,662.1 million), Castilla y León (€1,040 million), Galicia (€902.5 million), Castilla-La Mancha (€780 million), Murcia (€702.3 million) and Aragón (€680.2 million).

Meanwhile, the regions where the housing sector moved the least money during H1 2017 were Asturias (€435.9 million), Cantabria (€372.9 million), Navarra (€369.9 million), Extremadura (€266.5 million), La Rioja (€172.9 million) and Ceuta and Melilla (€89.6 million between the two).

Original story: El Mundo

Translation: Carmel Drake 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, which show that the housing market experienced “good health” during the first half of the year.

Nevertheless, according to the CEO of, 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

BBVA Forecasts A 10% Increase In House Sales In 2015

4 December 2015 – El Economista

BBVA Research, the financial institution’s research service, says that house sales will grow by 10% in 2015 and that in 2016, the real estate sector will finally leave behind the recession and will consolidate its growth.

Those were the main conclusions drawn by the latest Real Estate Watch Spain report published by BBVA on Thursday, which says that the sector is showing positive signs and that the available data indicates a significant improvement in demand, in an environment characterised by an increase in credit and the stabilisation of prices.

Moreover, the report explains that the scarce supply of new homes coming onto the market is enabling a significant reduction in the existing stock, to the extent that the supply is even running out in the most active markets.

This year is also seeing a significant improvement in the amount of activity undertaken by property developers, says BBVA, which means that in 2015 the residential construction segment is going to positively contribute to GDP for the first time since the start of the crisis.

The report notes that the recovery in demand, initiated in 2014, has strengthened during the course of 2015. In fact, it forecasts that the current year will end with around 400,000 house sales, i.e. an increase of around 10% compared with 2014.

This rate of sales will accelerate during the fourth quarter and the trend will continue into 2016, say the experts at the bank, who highlight that improvements in the fundamentals of demand are driving this trend.

Specifically, it mentions the recovery of the labour market and the increase in household disposable income, the positive developments in the financial markets and the stabilisation of residential prices, the strong performance of house purchases by overseas citizens, and an environment characterised by financial stability with interest rates on mortgages at historical lows.


Meanwhile, the report sets out that the growth in demand, in the context of a reduction in supply, lends itself to the stabilisation of house prices.

According to BBVA, prices have begun their journey through the recovery phase of a new cycle, a recovery that is currently undergoing a period of stabilisation and one that is happening more slowly than in previous cycles.

By type of asset, the bank observes a similar evolution in terms of both new housing and second-hand housing. Nevertheless, it clarifies that, whilst price decreases have been more intense in the second-hand segment, the recovery has begun more quickly in the new build segment.

Original story: El Economista

Translation: Carmel Drake