|Property Pulse Issue 433 – 18th June, 2013|
This week's hand-picked Spanish property news
In last week’s Spanish property news, unexpected figures showed that overall property sales increased in April, compared to the same month in 2012.
Considering that these sales would have completed around February, the upturn is all the more surprising due to the removal of tax relief on property purchases since the start of the year.
If this trend continues it potentially indicates that the bottom of the sales curve has now passed, so results for the coming months will be closely monitored.
However, one of the continuing restrictions on the number of sales is the limited availability of credit. Less than a third of the sales registered in April were financed with a mortgage, almost half the number of mortgages (60 percent) that contributed to sales in 2007.
The average loan to value (LTV) percentage of these mortgages was 78 percent; a reasonably high figure considering the maximum LTV with most banks is 80 percent, although this is around 10 percent lower than 2007.
Tying in with transactions completed in February was news that year on year house price changes had their highest decrease of 11.6 percent in February, moderating to nearer 10 percent last month.
The main price stabilization is occurring in the areas most popular with foreign buyers, notably the Spanish islands which have experienced flip flopping results recently, increasing then decreasing by a few percent in the last two months.
Finally this week, for non-EU buyers looking to take advantage of the Spanish residency offer (for purchasing a property worth more than 500,000 euros), a few additional details for the residency permit have been revealed.
In essence, only temporary residence is obtained for five years following the purchase, before a permanent residency permit is given. And a significant clause is that if the property is sold during these five years, the residency permit will be rescinded.
Here’s the best of this week’s Spanish property news.
Saludos from everyone on the Kyero team!
The sale of homes rose 10.8% in April, over the same month of 2012, to 23,578 transactions, referring to sales closed two months earlier (February).
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Tinsa reported that the average house price in Spain registered a year-on-year decrease of 10.4% in May, an accumulated drop of 37.4%.
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The number of permits granted for the reform of houses was 5,266 in the first quarter of the year, a decrease of 13.1%.
‘Operation Summer’ to be launched on 1st July, to ensure the safety of the millions of tourists visiting Spain in the coming months.
8,938 new companies were created in Spain in April, representing an increase of 30.5% over the same month in 2012.
Banco Santander has reached an agreement with the Sareb to create a specific line of funding for the purchase of its real estate assets.
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