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Spain statistics

I like statistics and financial data, so I will be posting a variety of information that I hope will be equally useful to others, even though perhaps not as exciting...

Cash is king in Spain when it comes to property
21 February 2017 @ 17:33

A couple of statistics caught my eye this week and they are related to the "how" of buying a property. In previous posts I talked about the "who" (British decreasing, other Europeans increasing) and the "when" (2016 a stellar year for both quantity and price). But how do buyers finance the buing of their Spanish property?

In 2016 a whole 32.8% of purchases were transacted in cash. That is 1 in 3 buyers did not require a mortgage. An inference from this could be that people with money on the sidelines, who have waited until the signs were clear to them, have decided to get back in the Spanish property market. So with that in mind, I researched another statistic, the number of buyers who bought as an investment (i.e. not for holiday and not as a main residence). For 2016, 28.02% of transactions were by investors, compared to 24.65% in 2015 - a 13% increase over 2015 (not 13 percentage points, 13% over the 24.65 value, which is the number that helps identify the strength of the trend).

Before rushing to conclusions that the "smart money" has decided the time is ripe for property, I offer another statistic which i consider relevant: the amount of negotiating margin when it comes to closing the deal. The range of price change before a sale in 2012 was 14%, and in 2016 this has dropped to 6.2%. This item has no official source, since it relies mainly on website/advert numbers compared to final selling price, however it does fit in with my previous post on a large number of sellers increasing their selling price versus those decreasing it. This might indicate tightening conditions from the point of view of the owner, and that the seller's market might not last for long.

In conclusion, we cannot objectively say that the market has put in a bottom, however investors do not buy without good due diligence, and they are usually the first movers. So this is another data point that might indicate more demand in the works for Spanish property.

 

PS: the majority of data has come from Registradores.org



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3 Comments


potblack said:
21 February 2017 @ 21:30

We all see claims and reports now boasting better news about Spanish property prices and sales, but are they true?.
We also see all the estate agents websites etc, but are these prices fact or fiction?.
Is it true that most property prices are based on what the owner paid and/or Tony’s house for sale next door.
There is a government website that now lists all properties sold through court proceedings.
Portal de Subastas de la Agencia Estatal Boletín Oficial del Estado
https://subastas.boe.es/index.php
Approximately 3,000 properties for sale at any moment in time with a listing period of 3 weeks. This equal 52,000 properties per annum.
Obviously I cannot check everyone of them, but I have not found a single property that has sold. All I can find is ‘’The auction has not received any bids.’’.
These are distressed properties below market value, if in fact there is such a thing as market value or is it just speculation value?



briando55 said:
21 February 2017 @ 23:48

I'm a registered valuer with RICS. The value of a property is what someone is prepared to accept from an unfettered offer.

There is no magic formula for a property value.

Sales agents can of course use all manner of means to create values, its a sales tool to do so, nothing wrong with that but it doesn't mean a thing really!


hbcproperties said:
22 February 2017 @ 09:44

One of my previous posts, 2nd graph, shows the average price development in the last 2 years: https://www.eyeonspain.com/blogs/spainstatistics/16972/post-brexit---how-much-exactly-is-costa-del-sol-real-estate-affected.aspx
Of course it's an average so I'm sure what you see in your own areas might be drastically different.
The subastas world in Spain is a strange one, the bids are done behind closed doors, a house 5 doors from me sold recently at a fraction of what I paid for mine (but needed a lot of repairs), and the formal bid announcement, notary signing, money transfer all happened on the same day.


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