Mainland Spain's property market struggles whilst The market in Tenerife appears to be on the up once more.
The volume of new mortgages approved in Spain in April dropped by 42 per cent to 50,288, compared to the corresponding month in 2008, illustrating the extraordinary fall in demand for property in Spain, according to data compiled by the country’s National Institute of Statistics (INE)…
On a monthly basis, new lending fell 4.1 per cent between March and April, while the average value of a new residential mortgage has fallen by 18.4 per cent to £98,324, possibly to reflect the fact that Spanish property prices have fallen, while buying budgets have unquestionably dropped.
The low new lending figures further demonstrates the weak nature of the Spain property market but the latest reports suggest that Tenerife may be over the worst as the pound stregthens against the Euro and prime property is available at bargain prices on the island
INE’s figures suggest that the housing downturn in Spain may still have some way to go on the mainland until the market eventually bottoms out.
The data further shows that the average mortgage interest rate agreed in April to buy a property in Spain was 4.7 per cent, owed largely to low Euribor base rates.
