Home construction in Spain to recover in 2013?

May 21, 2012 – 8:30 am

Construction in Spain and Tenerife set to improve in 2013

Home construction in Spain will begin to recover in 2013, according to the
Corporate Practise Institute.

The IPE’s Real Estate Pulsometer has predicted that the country’s inventory
of unsold will decline by 23.6 per cent this year, with up to 611,250 homes
being snapped up.

The report also notes an increasing trend for purchasing Spanish property
with cash, predicting that mortgages taken out will amount to just
one-third of the level seen in 2006.

However, while the market’s outlook is promising for the next 24 months,
“the report stresses that current construction activity has been reduced
to 20% of that achieved in 2007″,  Spanish rents rose by 0.7 per cent in April.

Figures from the National Statistics Institute showed that rental rates
increased compared to April 2011, with only two regions recording a
decrease in price: Murcia and La Rioja, where prices fell by 1.2 per cent
and 0.3 per cent respectively.

Rents increased by the highest amount in Catalonia, 1.4 per cent, followed
by Asturias and the Basque Country, where rates jumped by 1.2 per cent.
Rents rose by 1.1 per cent in Castilla y Leon and 1 per cent in Galicia.

Increases of less than 1% occurred in Andalusia (0.8%), Melilla (0.7%),
Ceuta (0.7%), the Canary Islands (0.6%), Extremadura (0.5%), Castilla-La
Mancha (0.5%), Cantabria (0.4%), Aragon (0.4%), the Balearic Islands
(0.4%), and Madrid (0.2%).

Source: Kyero

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House sales fall in Spain,though the islands fair better.

January 20, 2011 – 9:44 am

Spanish house prices fall in November

Spanish house sales fell in November for the third straight month, official data showed on Wednesday, reversing eight months of gains as the country’s ailing property sector struggles to recover.

House sales dropped 6.2 percent in November from a year earlier to 32,746 units, after falling 17.7 percent in October, though rose 20.4 percent month-on-month, the National Statistics Institute said.

Spain’s housing crisis has turned a decade-long economic boom into a prolonged bust, forcing the country’s network of savings banks into a costly consolidation process and leaving millions of construction workers without jobs.

Housing prices, which have not fallen as sharply in Spain as in the United States or Ireland, are expected to continue to fall gradually for several more years, aggravating economic stagnation. However, the islands such as Tenerife have largely faired better during the current difficulties.

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Spain’s property prices fall again

January 12, 2011 – 2:07 pm

Spain's property prices falling

There are between 700,000 and 1.1 million unsold homes in Spain, a figure that could drag the property prices in the country down further this year, according to the Central Bank in Spain.

A spokesperson from the financial body said property values are likely to continue their downward trend due to tax changes in the country. The banking regulator said: “We will see a process of gradual absorption of accumulated excess supply, which will be slow and mean that housing investment will not contribute to the growth of activity in the near future.”

House values fell by about 13% from the peak seen in the first quarter of 2008, according to government statistics. There was also a decline in new-home construction. Only 137,000 homes were built in the year to September, down from the 2007 peak of 750,000 units.

Perhaps with the fall in the value of the Euro, more overseas purchasers will be tempted back to buy in areas such as Tenerife and The Canary Islands, which have been popular in the past.

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