Costa calida informer edition 606

Page 1

No 606

Tel: 96 673 0057

Monday 22nd February 2016

Tel: 676 820 588

Issue 320

GREAT NEWS FOR HOME OWNERS AS HOUSE PRICES RISE 6.6% According to the results published by the Spanish Land Registry, house prices rose by 6.6% during the last quarter of 2015 and the amount of properties that changed hands also rose substantially by 11.2%. The records at the Land Registry show that 354.538 properties were bought from October 1st 2015 to December 31st 2015, which represents an increase of 0.9% compared to the third trimester of 2015. These positive results will undoubtedly bring welcome relief to those who bought properties in the boom years between 2004 and 2007 and have since found themselves in negative equity since the onset of the crisis and the plummet in house prices in 2009. Thousands of property owners have been stuck in homes, unable to sell as the value of their property is nowhere near the amount still owing on a

mortgage. This being said it does look like there is hope on the horizon. Following 18 months of steady increases in real estate sales and property prices, the average property price has now reached those of September 2004.

A major contributor to the recovery of the Spanish real estate market is the investment from foreign markets. UK citizens are leading the way in this department and represent 23.9% of all properties purchased by non-Spanish nationals. The French are second representing 8.2% of foreign investment, closely followed by the Germans with 7.8% of purchasers. Luckily there appears to be plenty of Brits interested in buying a home in the sun and this is adding a helpfull dynamic to the Spanish property market. If this positive trend continues it won’t be long before the demand will once again exceed the supply, which will result in house prices increasing across the board. It is only to be hoped that the Spanish Local councils learnt from the property crash and will be more cautious before handing out copious planning permissions to developers that would once again lead to a flood of properties thus lowering the average prices.


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Costa calida informer edition 606 by The Leader - Issuu