Newly built homes’ values to fall further this year

Posted on April 19th, 2012 in Real Estate in Spain by author

Cincodias.com reported that the Spanish government predicts the asking prices for newly built homes will fall further in 2012, bearing in mind that nearly 65% of all housing surplus is located at the Spanish costas. The lack of available credit and stagnant labour market has made it more difficult to reduce the number of empty new homes on the market.

The most dramatic price adjustment will be reserved for the 800,000 purpose built holiday and second homes, which are mainly located at the Mediterranean coast.

A recently published study conducted by Cataluña Caixa suggests that two thirds of unsold, and seemingly unwanted housing stock were constructed in coastal areas, ore more precisely, some 65% of such homes were built in Andalusia, the Balearic Islands, Catalonia,  Murcia and Valencia.

The latter is the worst affected region with nearly 210,000 unsold homes still on the market at the end of September 2011, which reflects 25.6% of the total unsold housing stock. Seen in combination with 137,000 unsold homes in Murcia and 107,000 unsold properties in Catalonia, this represents a 55.4% share of the overall unsold surplus.

Worrying still, while the overall availability of new housing stock may have reduced down over the past couple of years, in the Basque Country, Catalonia and Valencia more newly built homes have come onto the market.

Seen on a province by province basis, Castellón is showing a volume of almost 114,000 empty homes, whereas Alicante and Barcelona recorded 57,000 unsold newly build homes respectively. Murcia recorded another 52,000 unsold properties and Valencia registered some 40,000 newly build, unsold properties.

SOURCE: http://news.kyero.com

Are property prices rebounding from the summer slump?

Posted on March 2nd, 2012 in Real Estate in Spain by author

Real estate portal Casas.facilisimo.com reported that the average price for a second-hand home in Spain fell by 4.28% during the summer quarter, the largest recorded drop in the last 4 years. September, however, saw a slight increase of 0.21% compared to the previous month. This was the first increase seen in this sector since November 2010.

The dual inducement of a reduction in Value Added Tax (VAT) on new builds and holidays being affordable once more has caused investors to act and as a result, the fall in house price has come to an end – for the time being. “This rise does not mean that prices will begin to rebound, considering the depressed economic situation of banks and individuals,” warned a spokesperson for Casas.facilisimo.com.

Taking into account the price drop this summer, property prices accumulated a 7.43% fall in a year-on-year comparison. At the end of September the average price for a 70 sqm second-hand home was around €133,490, which represents an average of €1,907 per square meter.

The region with the cheapest second-hand homes was named as Extremadura, where a 70 sqm apartment costs on average just €74,620. The Basque Country was named as Spanish most expensive area. Here a second-hand home still costs around €230,580.

The situation is not unified across Spain and some areas fare worse than others. According to Cinco Dias, property prices continued to fall in Andalusia (a 0.92% drop), in Aragon (a 0.05% drop), in Castilla y Leon (a 0.54% drop) and in Madrid (a 0.74% drop).

Current winners in the property game are La Rioja, where the average price of a second-hand home went up by 2.79%, beating even the favourites, namely the Balearics, where prices rose by just 2.76% during September compared to the previous month. In Galacia a small increase of 1.74% was recorded, Castilla-La Mancha saw an increase of 1.92% and a 1.96% increase was recorded for Navarra.

SOURCE: http://news.kyero.com

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