Property sales on the increase in Spain

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
10 May 2010 00:00 by fpegman Star rating in San Miguel De Salina.... 443 posts Send private message

fpegman´s avatar

This article was sent to me by Taylor Woodrow   !!!!! must be good news !!!!!!

 
 
Sales Increased by 9% in March, according to data from INE
Home sales up for the third consecutive month
Published 5/10/2010 by BusinessWeek

The surge in second-hand properties made home sales increase by 9% compared to the period in 2009 and consolidates the rebound since the beginning of the year. However more moderate than in February, when these operations grew 18.7% - the highest increase recorded in the last two years.

The increased housing sales in March compared to the same month last year, a total of 37 561 operations, of which 48.9% were made on new homes and 51.1% on second-hand properties, as reflected today Statistics on Transfer of Property Rights published today by the National Statistics Institute (INE).

This better performance has been possible thanks to an increase of 25.1% in sales (19 212 operations), since the new building transactions decreased 4% (with 18 349 operations).
Purchases and sales of homes surged in March for the third consecutive month.

Last year ended with a decline in the sale of homes of 24.9% over 2008, a total of 414 811 operations. From February, the sale of homes fell by 8.5% versus 7.1% rise the previous month, and in the first three months of the year accumulates a rise of 9.7% over the same period 2009.

Of the 37 561 sales transactions in March, 89.5% were on free housing and 10.5% of social housing. The former increased by 9.2% compared to March 2009 and rose to 7.1% for the protected homes.

The sale of previously owned/ second hand homes rose in March at 25.1% annual rate, up to 19 212 transactions, and new housing fell 4%, with 18 349 operations in the third month of the year.

In terms of geographical distribution, the regions of Cantabria (152) and Navarra (150) head the amount of sales operations. 57.3% of sale’s were recorded in four communities: Andalusia, Madrid, Valencia and Catalonia.


_______________________

Fred

Overseas Property Company

fred@overseaspropertycompany.com

Real Estate sales - rentals and Lloyds insurance agency.




Like 0      
10 May 2010 17:28 by morerosado Star rating in Guardamar del Segura.... 6931 posts Send private message

morerosado´s avatar

Sales may well have increased but I believe that's because vendors have needed to accept that they have had to let their properties go for a LOT less than they bought them for ... certainly we would get a LOT less after owning our property for 5 yrs! It doesn't mean sales are on the increase because prices are creeping back up slightly so we lose less than we did a few months ago, had we sold then.



_______________________

PLEASE SUPPORT  http://www.galgosdelsol.org/ 

 

 

 

 

 

 




Like 0      
03 Jun 2010 14:21 by Iwantout Star rating. 1 posts Send private message

 Hi,

 

sales have increased???????????

After 18months trying to sell my property and seeing hundreds like me I realise that the only people selling are those that can afford to take a huge hit.  That also refers to the hit taken by using the local scammers, much like the marbella scandal 5 years ago.  The Spanish property market is so complicated I often wonder was I totally insane or very drunk when I actually purchased my apartment in Alicante.  Well I suppose I did think at the time that it would be my permanent residence but alas a woman changed my mind and I returned home.  

So if sales have increased by 9% I suggest that this means that prices have dropped significantly because every man and his dog now know that the market worldwide was so overinflated that a total cleansing process of brining prices back to real terms was needed.  I believe that they will only sell once the prices revert to pre 2004 prices.

 

I wont hold my breath for a sale but I will use cheaper avenues to sell it than what I have used up to date.





Like 0      
03 Jun 2010 14:57 by georgia Star rating in Algorfa (As seen on .... 1839 posts Send private message

Vip Supporter

georgia´s avatar

i can only speak personally and for a few other agents i know but sales are definitely up on last year.

I have sold as many properties this year already as i did in the whole of last year!!!

The reason, pure and simple,the prices.

You can now buy a 2 bed bed apartment surrounded by amenities and nestled in a traditional spanish village,15 mins from the beach for 45,000 Euros!!!!!!!!!!!

As a client said to me yesterday, thats less than their company car cost!!!!!!

Not off plan,fully licenced and legal,5 years old so all snagging resolved etc etc.......there are so many of these around.

Thats why sales are up, people who were out of the equation in the boom can now have a holiday/retirement home for very little investment.

I expect the British to come back into the market more if the pound gains momentum, at the moment the pedominant buyers are scandanavian,Spanish and a few British that are now snapping up the bargains.

With the legalities now 100% sorted (in my area at least) i think if the world wasn't in such a state there would be some serious interest in property again.



_______________________
www.orion-ire.com info@orion-ire.com still here after all these years!



Like 0      
09 Jun 2010 11:40 by Montse123 Star rating. 1 posts Send private message

Sales has increased during las few months because VAT is gonna rise from a 7% to 8% in July





Like 0      
09 Jun 2010 12:09 by georgia Star rating in Algorfa (As seen on .... 1839 posts Send private message

Vip Supporter

georgia´s avatar

 But the increase is only on New build property, not on Resale.

Considering i have not sold a new build for six months i am afraid that does not explain the increase in sales.

Just to add only about 10% of our recent buyers had heard about the IVA hike.



_______________________
www.orion-ire.com info@orion-ire.com still here after all these years!



Like 0      
09 Jun 2010 13:26 by Sanchez1 Star rating. 852 posts Send private message

Our landlord has our property up for sale.  We had no viewings at all in 2009, but the first few months of 2010, there were a lot of viewings.  And then it all went quiet again in April.  I guess all of this talk about Spain defaulting, the IMF, the end of the euro, salary cuts etc. have knocked confidence again in recent months.  I guess we'll have to wait a while to see if that was the case.

Georgia, are you based in the Alicante area?  45,000 euros sounds cheap.  Out of interest, how much would that let out for per month on a long term let. 

I'm based on the western Costa del Sol and I keep being told property is cheap here.  Decent 2 bed appartments (bank repos) are now going for 100K.  That seems cheap on the face of it, especially compared to the bubble prices of a few years ago.  However, rents have collapsed and these 100K properties would only rent out for 400 per month tops now.  Which only gives a rental yield of 4.8% assuming no voids (unlikely).

When I was back in the UK in April, I was checking my local market and you could buy good quality property on 7% rental yields.  So why is Spain so expensive still compared to the UK.  Spain has 1.6 million unsold properties, so why are yields better in the UK, which has no oversupply of property?

I still think prices could fall another 50% in Spain, especially as we have wage deflation now in Spain.



_______________________

Read my blog: Spain Money Saving Tips and Offers 

Use TransferWise to send money abroad. A lot cheaper than the bank and other online currency exchanges!.

 

 




Like 0      
09 Jun 2010 14:07 by georgia Star rating in Algorfa (As seen on .... 1839 posts Send private message

Vip Supporter

georgia´s avatar

 Hi Sanchez,

We are based in Algorfa, 15 mins inland from Guardamar and approximately 45 mins south of  Alicante City (30 mins from El Altet Airport).

When i first moved up here (originally was based in Granada area) you could not buy a property in the village, there was literally nothing for sale!!

Then they started to build for both the locals and the foreign buyers.

On the outskirts of the town they built approximately 16 blocks of apartments in 2 locations.

These were all sold off plan from approximately 80,000 to 142,000€

the cheapest one we have sold recently was for 37,000€

They rent for anywhere between 250€ and 350€ per month depending on floor and orientation, some of them have beautiful views of the mountains.

They are in a gated community with communal pool and gardens.

I think most landlords look for at least 7% yield, especially in the UK.

The people that are buying these are not neccesarily investors, they are people that want a little bothole or retirment home that is very inexpensive.

Don't forget these are not properties that are stuck out in the middle of nowhere, like some new urbs, these are within a Spanish village with town square,church, 21 bars and restarants, sports facilities, banks,bakers,butchers and on and on....so you don't have to compromise on location or wait for the facilities to be built.

The reason people are coming back now is that they can sell their property in the UK, buy a retirement place,stick the rest in the bank and suffer no harsh winters again.

Anyway,enough of the sales speel........

We have noticed a drop off in the last 2 weeks also, although we did sell a 3 bed 2 bath villa yesterday for 90,000€!!! (sorry,last bit of speel!!)

i think this has a lot to do with the forthcoming World cup as people do not want to come looking at properties as they are all looking forward to the looming dissapointment of our National side under performing once again.

The Euro/Sterling looks stuck at 1.21 at the mo but i can see it galloping on very soon, maybe this is another reason for the stall, maybe people think that they will wait and see what happens.

It would be interesting iof there are any potential buyers out there that could let us in on the secret.



_______________________
www.orion-ire.com info@orion-ire.com still here after all these years!



Like 0      
10 Jun 2010 13:52 by Sanchez1 Star rating. 852 posts Send private message

Hi Georgia.

Thanks for your reply.  Interesting stuff.

the cheapest one we have sold recently was for 37,000€

They rent for anywhere between 250€ and 350€ per month depending on floor and orientation, some of them have beautiful views of the mountains.

Taking the lower figure of 250/month, based on the 37K purchase price, that's a yield of over 8%!  A bit of a bargain by the looks of it.  I don't know why the Costa del Sol is still so overvalued.  There's a huge oversupply of properties here.  It doesn't add up.

The people that are buying these are not neccesarily investors, they are people that want a little bothole or retirment home that is very inexpensive.

I like to use rental yield as a way of comparing whether property is cheap/expensive relative to the rate you would get in the bank and the dividend yield available on the stock market.  It looks like the Alicante area is very cheap now, and the Costa del Sol very expensive.



_______________________

Read my blog: Spain Money Saving Tips and Offers 

Use TransferWise to send money abroad. A lot cheaper than the bank and other online currency exchanges!.

 

 




Like 0      
10 Jun 2010 15:23 by georgia Star rating in Algorfa (As seen on .... 1839 posts Send private message

Vip Supporter

georgia´s avatar

 In all honesty i think both the CDS and the CB were well overpriced in the past.

The supply and Demand simply inflated the bubble untill the well publicised pop!

I think reality has hit far quicker here and propbably the price drops have kicked in a lot quicker, that's why i feel we have hit bottom a lot quicker.

You can now get a 3 bed 2 bath detached villa with pool for just over the 100k mark, this will give a monthly rental of around the 600€ mark, so the figures are starting to come back in line.

I have recently moved myself and picked up a property for the same price as it was purchased 10 years ago.

This is the only reason the market is stuttering into life.(around here)

If we get an increase in the pound/Euro, the world settles down financially i could see a half decent return to the market.

It will take a little convincing as i think a lot of people think that every house in Spain is illegal and comes with the a bulldozer looming....

I would prefer a blanced view and a settled moderate housing market.

10 years ago the TV told us we couldn't go wrong and now the it tells us that it is inevitable that we will be landed with problems.....the truth is somewhere in the middle.

 



_______________________
www.orion-ire.com info@orion-ire.com still here after all these years!



Like 0      
10 Jun 2010 17:59 by Patty_1 Star rating in Hertfordshire. UK. .... 1063 posts Send private message

Hi Georgia,

Have you read the Evening Standard today . The money page saying Brits are looking to buy in Spain because of the euro!!!! 

Survey by Rightmove

Pat 



_______________________

  




Like 0      
10 Jun 2010 18:51 by cazzy Star rating in Inland Andalucia. 185 posts Send private message

Our viewings are increasing slightly, but customers know that they can get a bargain now! Their 'wish lists' are very exact. We are finding that village houses under 40k seem to be selling well. Also rentals are picking up especially ones under 250 euros a month.

Caz





Like 0      
18 Jun 2010 14:06 by scambuster Star rating. 144 posts Send private message

Is the backlog of 1.6 million unsold new homes being cleared first and who is buying them?

Thought it was interesting that Fred, an agent was sent the article from Taylor Woodrow a developer with problems worldwide and then posted the header, the two don't sit comfortably.

Anyone know the figures for those Brits who can't sell their properties on the Costas? 

There will be better bargains to come later in the year or next methinks! 





Like 0      
18 Jun 2010 16:21 by claire T Star rating in Torremendo, Orihuela. 689 posts Send private message

EOS Supporter

A lot of the unsold new properties here on the Costa Blanca are being repossessed by the banks and they can be very difficult to deal with.  It has taken a whole week for Bancaja to get me a set of keys for a property on their books and 6 weeks to give me an answer to an offer!

Some builders who have managed to hang onto their stock are discounting and hence selling, but others are still way overpriced so they won't sell. 

The biggest problem here for owners trying to sell is that the prices are too low - they cannot clear their mortgages if they reduce their asking price to current market values, and any unpaid debt would pass to the buyer, so they are stuck.  Their only choice is to hang on and try to pay the mortgage or hand the keys back.

Many properties here are about 50% of the peak price, when many Brits bought, so I don't see them reducing much more.  There are still properties on the market way over price so this makes generalisations impossible - eg I have a 3 bed quad for 116,000€ and the one next door is with another agent for 195,000€.  Which price is quoted when people say the market still has further to fall?

 



_______________________
Claire



Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

Supermarkets in Mazarron/Puerto de Mazarron - 2 posts
Garden Furniture - 5 posts
Spanish catholic query - re 'encapuchado de la Santa Cena' - 3 posts
CAR HIRE CHARGES.......yet again!! - 7 posts
9th of May. Europe Day. Costaluz offers a 1 year free service to entrepreneurs - 0 posts
what is the best web site advertising jobs in spain - 5 posts
Pleas join our efforts regarding proffessional liability of Banks regarding off-plan deposits - 1 posts
Any Guitar Players? - 10 posts
Administrator dictating who is used for Community works - 12 posts
Roberto, congratulations! - 12 posts
Sewing Machines and Crafting - 0 posts
Opticians in Spain - 15 posts
Describe Terrazas de la Torre - 1 posts
I'm in Heaven - 8 posts
A little word of warning - 4 posts
A little word of warning - 0 posts
Office furniture - 0 posts
Car Insurance Claim - 4 posts
anyone got a badminton raquet to sell - 1 posts
Costaluzlawyers sponsored garden designer, Maria Luisa Medina winning in Malvern - 0 posts
Going rate for cleaner or cleaning agency? - 9 posts
Constructive problems in your new home - 5 posts
Grundig digi box - 0 posts
property transfer tax percentage? 7% or 9%? - 3 posts
Easyjet - Flights released to March 2011 - 5 posts

Number of posts in this thread: 14

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x