Monday, 23rd September 2019
LAND & PROPERTY Article
Advertisment

This Month's Magazine
Spanish Property News

Spanish Property News

A collection of iinteresting news items

Lower demand for mortgages.
According to a survey carried out by El Banco de España, we are informed that, after the notable increase reported at the end of 2004, Spain and Germany were the only two countries within the European Economic Monetary Union that recorded a reduction in residential mortgage demand in the course of this years’ first quarter.

Of the 10 Spanish banks and building societies that took part to the survey, two advised of a drop in the number of mortgage requests, giving as a reason the higher cost of property. The remaining eight entities did not notice a change in demand.

Twice as long to pay for a property.
A typical Spanish family now needs some 24 years to pay for the purchase of an average home, that is twice as long as it took in the late nineties, when the average repayment time was around the twelve years, which in turn was four to five years longer than registered in 1991. The information is supplied by the Banco de España in one of its latest economic bulletins.

Cheaper mortgages for the first time this year.
Euribor fell by a marginal 0.072% during the month of May. Only a slight decrease but a significant one as it happens to be the second consecutive drop and because the current level is the lowest on the last 13 months. Those, whose mortgage is revised in June, will benefit from a small reduction in repayment because the Euribor value is lower than one year ago, when the mortgage indicator was at 2.297%

Difficulty in repaying mortgages.
One in every 3 Spanish borrowers has experienced problems in maintaining the monthly repayments.
A survey carried out by the insurance group Carif, part of BNP Paribas bank, examining 14,000 cases in 14 different countries, advises that 31% of Spanish borrowers have had problems in keeping up with their monthly repayments on borrowings, further more another 23% confirm that they are experiencing severe problems in facing the daily costs of living.

(Perhaps the local authorities should not have been so greedy and eager in encouraging the price increases that now backfire with lower tourism (income) and higher costs to bear).

Madrid, lowest increase in 5 years.
New family apartments in the Madrid community have been subject of an increase of just 4% in the course of 2004 (13% within the city centre), this is the lowest increase recorded in the area in the last five years.
The average price of a 92 square meters apartment is around the 376,000 Euros.


Advertisment

The average price of homes purchased by immigrants increased by 20% in 2004.
The average price of a family apartment, purchased by immigrants to Spain, has undergone an increase of 20% in 2004, reaching a value of 142,000 Euros. One year earlier such value was around the 118.000 Euros.

The survey carried out last year by the Departmento de Estudios de Fincas Corral, also states that the major group of immigrants relates to Latin Americans.


The same survey also reveals that the Latin American population continues to be the primary purchaser, representing a 43.71% of the whole, followed by immigrants from Morocco.

The survey also highlights the areas of greater concentration of these purchases as follows: Catalunya 48,12% - AragĂłn 17,77%, followed by Madrid with 11.20, then the Valencia area with 8,24% and the PaĂ­s Vasco with 3,41%.

It could take 2.5 years to sell a house.
The average time it takes to sell a property in Spain could reach as much as 2.5 years according to the present climate.

This represents 28.9% longer according to “Anuario Estadístico del Mercado Inmobiliario Español” presented by the firm of economic and financial consultants Acuña & Asociados.

According to Rodrigues Acuna, the situation on the Spanish coastlines is even more delicate because, although the level of mortgage applications was high at the beginning of 2005, nevertheless the demand by foreign buyers has dropped by 9%. Furthermore the increase in values on the coastal areas is between 13% and 15% but the forecast for 2006 is between 7% and 9%.



Web Express Guide - Andalucia
Business Guide Costa del Sol, 29680
+34 952 891 773
More Information
Web Express Guide - Andalucia

Start Blogging:
Other related businesses