Spanish property market driven by foreign investment in 2017

Spanish Property

According to Premier Marbella news sources, a recent report on the Spanish property market shows that in the first quarter of 2017 foreign nationals purchased 15.000 properties in Spain, which represents a 13.1 per cent share of the total property sales.  Continue reading

High percentage of property sales in Spain without mortgages

Marbella property

Following on from recent news articles by Premier Marbellaregarding Spanish property sales in 2013, the president of Sabadell Bank Josep Oliu has indicated that 75% of the properties sold by this entity were paid for without mortgages as very few buyers nowadays are seeking credit.  Continue reading

Spanish property prices continue to slide

marbella_property

According to data just released by Global Property Guide, property prices in Spain continue to slide. In June 2012, property valuation company TINSA’s (IMIE) general property price index plunged by 10.8% from the same period last year. Continue reading

Seven out of ten buy property without a mortgage in Spain

A man waits in front of a BBVA bank branch in central Barcelona

According to Premier Marbella news sources, almost seven out of ten property transmissions were made without mortgage between January and March, according to a report by the General Council of Notaries. The leverage of banks, economic uncertainty and tightening conditions have led to this decline in the number of mortgages approved. Only 32.7% of property purchase transactions in April were with a mortgage.  Continue reading

The Euribor in June sits at 0.48%

EuriborAccording to Premier Marbella news sources, the Euribor over twelve months, the indicator most used to calculate the price of mortgages in Spain, ended the month of May at 0.484%, a record low which places it in monthly rate below 0.5%, which is price the ECB put the money in the euro area last April. Leading Marbella property specialist Romano Keogh is confident that this news will be most welcomed by property owners with mortgages.

Stringent banking requirements and property price reductions drive cash purchases without mortgages

images2012 accounted for more than 274,000 mortgages, but nevertheless there were a further 44,000 sales transactions (ie, 319,000). This means that 13.8% of home purchase operations that were conducted in 2012 did not require mortgage financing. By contrast, in 2011 there were more mortgaged purchases and specifically 11.9% more mortgages granted. The demands of financial institutions make a large number of young people unable to access mortgages.

According to the business director of Bankimia, Sergio Fernandez, “we are in an environment of strong credit crunch that makes financial institutions very demanding when granting a mortgage so a large number of young people who are unemployed or in temporary employment are excluded. Another barrier outlined by Bankimia for this group is having to contribute funds of up to 20% of the property value.

With this situation, Sergio Fernandez adds “the return of deposits and other savings products is not very attractive and the price of housing, especially in certain areas and for certain uses (second homes) has decreased considerably during the crisis” opening a door to cash rich investors who can find very attractive offers in the real estate sector.

Banks in Group 2 transfer assets to Sareb

N21155On Thursday, the group of banks in Group 2, composed of CEISS, Liberbank, BMN Box3 will transfer their bad assets, valued at 15,000 million euros, Sareb. The transfer of assets from Group 2 comes after the entity has increased capital by 1,200 million euros and has embraced the entrance as shareholders Iberdrola and Banco Caminos, which contributed 2.5 million euros and 800,000 euros respectively.

On 31st of December Sareb received damaged assets from the nationalized entities, Bankia, Novagalicia Bank, Bank of Valencia and Catalunya Bank, set at a value of 36,695,000 euros. The transfer of these assets and loans associated with property will be exchanged for bonds issued by the Sareb with the guarantee of the Spanish state. The Ministry of Economy expects that Sareb will bring together approximately 55,000 million euro of assets after the completion of the transfer process of two group entities.

El Euribor recupera su tendencia a la baja

The Euribor, the indicator that references most Spanish mortgages, has resumed the downward trend that continued in 2012, after the rise experienced in the month of January, which ended with 0.620%. The index yesterday recorded a daily rate of 0.604, compared to 0.622 at the start of the month, noting provisionally a general rate of 0,614. Positioning it at 1,062 points compared to February last year. Last Thursday, the Governing Council of the ECB decided to keep interest rates at 0.75%, which was the minimum set in July 2012.

Number of mortgages constituted drops again

MortgagesThe number of mortgages on homes continues to fall, continuing a two and half year trend of decline. In October the number had reached 19,105, representing a decrease of 14.4% over the same month in the year 2011 and marks a new low, according to figures released by the National Statistics Institute INE.

 

Albeit in its lowest level since the time records began in 2003, mortgages had moderated their year decline until September when they fell by 28.5%. In the first ten months of 2012, mortgages on homes fell by 33.2% over the same period in 2011, a decrease of 38.8% on borrowed capital and 8.4% in average mortgage value.

 

Spanish Mortgages hit a low

Spanish housing mortgages reach all-time lows, after falling 32.2% in September. The average interest on home mortgages stood at 4.12%, the lowest since June 2011. The number of mortgages on homes totaled 21,195 in September this year, down 32.2% from the same month of 2011, according to figures released recently by the National Statistics Institute (INE). September’s Inter-annual results show mortgaged homes have reached 29 months of consecutive falls.

National Statistics InstituteThe September year on year decline was more pronounced than that of August, when the mortgaged homes were down 28.5%. In addition, the total number of home mortgages is the second lowest in any month in the comparable historical series, which began in 2003. The ‘floor’ of mortgaged homes occurred last August, when 21,106 mortgages were set, 89 less than in September.