House Prices in Spain
House Prices in Spain increased by 5.1% year-on-year in the second quarter of the year, according to the latest statistics from the Association of Property Registrars. This increase is almost double the increase recorded in the first quarter of the year (2.65%), which the Registrars point out “consolidates and intensifies the change in trend which began in 2014”.
Quarter-on-quarter, the increase in housing prices amounted to 2.8% in the second quarter over the first. Thus the pace of growth of the past few quarters has softened the decline since the peak levels reached in 2007, to 29.2%.
A total of 87,187 home sales transactions were registered in the second quarter of the year, which is 11.1% more than in the same period of 2014, and the second highest number of transactions recorded in the last nine quarters, although the figure is 3.7% less than that recorded in the first three months of the year.
In the last twelve months a total of 335,163 home sales transactions have been registered, which is 2.7% more than the accumulated figure up until the first quarter of the year.
Once again, a great difference was noted between the number of new and secondhand home sales in the second quarter. While a total of 18,482 transactions were recorded on new homes, representing a decline of 18.5% over the previous quarter, some 68,705 transactions were carried out on second hand homes, representing an increase of 1.2%.
The region which registered the greatest number of homes sales transactions in the quarter was Andalucía, with 17,751 transactions, followed by Catalonia (13,228), Valencia (12,760) and Madrid (12,514).
According to El Economista, foreign demand for Spanish homes remains strong and accounted for 12.8% of the total home purchases in the second quarter, rising from the 12.2% recorded in the first quarter, which shows a certain level of stabilisation in the percentage of purchases by foreigners, at around 13%.
The foreign nationalities leading the ranking for home purchases in Spain are the British (19.8%), French (8.1%), Germans (7.6%), Belgians (6.5%), Swedish (5.6%) and Italians (5.3%). The Russians rank in seventh position, with 3.9%, confirming the downward tendency of recent quarters.