real estate sector

Spanish economy 14th June 2023

Bank of Spain warns there are half a million homes practically unsaleable but lack of developable land means prices cannot fall

A study by the Bank of Spain recommends that the government “review the procedures for managing land for development” to try to lower the price of housing in Spain, the high cost of which it attributes to the “mismatch between supply and demand”. The study, “El desajuste entre la oferta y la demanda de vivienda y su relación con los precios“, (“The mismatch between housing supply and demand and its…

Spanish economy 8th June 2023

Home purchases fall by 20.7% in April (to 49,639 units), average mortgage at €142,000

The number of home sales and purchases fell by 20.7% year-on-year last April, to 49,639 operations, according to notaries. Meanwhile, the average price per square metre stood at €1,622, 0.9% more than in April 2022, according to data from the General Council of Notaries published on Wednesday. By housing type, sales of flats fell 20.2% year-on-year to 38,269 units, with prices down 0.2% – to €1,787 per square metre –…

European economy, In Europe 1st June 2023

ECB warns of risks associated with liquidity in real estate and debt market

Banca March| The European Central Bank (ECB) continues to see “vulnerability” in the markets given the new interest rate scenario, which in its opinion poses higher financing costs for companies and households that could trigger a liquidity crisis, given the need for massive asset sales in a hypothetical panic scenario. This vulnerability would be concentrated above all in real estate funds and in the debt market, this being one of…

In Spain, Spanish economy 22nd May 2023

Spanish housing sales record second fall in March, down by 5.7%

Alphavalue/DIVACONS| Housing sales recorded a declining rate of 5.7% year-on-year in March to a total of 55,778 operations, in a context of higher interest rates to contain inflation, according to the National Statistics Institute (INE) on Thursday. With this year-on-year decline, housing sales are now showing two successive months of negative rates after declining by -6.6% in February. On the other hand, the Denaria platform branded as “abusive and arbitrary”…

In Spain, Spanish economy 18th April 2023

Rental housing stock down 5% while price up almost 8%

Bankinter : The supply of rental housing is sinking with prices at record levels. In the last year, the stock of rental housing has decreased -5%, while its price has increased by almost +8%. According to data from Idealista, in Q1 2023 the rental housing stock decreased by -5% year-on-year. Last year the decline was -37%. Analysis: It highlights the structural lack of supply in the housing market, which could…

Spanish economy, Spanish Politics 18th April 2023

Spanish Housing Law: end of CPI as reference index for annual update of rental contracts

Alphavalue / Divancons | On Friday, the Government reached an agreement with ERC and Bildu on the Housing Law which, among other measures, eliminates the CPI as a reference index for the annual update of rental contracts and sets a cap on rent increases of +3% in 2024 (which joins the +2% in 2023 already approved), extends the declaration of the so-called stressed areas and lowers the limit for being…

Spanish economy 20th March 2023

Housing market slowing down, but sharp correction unlikely

Caixabank | Housing sales remain elevated (649,000 units in 2022, the highest since 2008) but there are emerging signs of deceleration of housing demand: in December housing sales declined by 10.2% year-on-year and new credit for house purchases declined by 14.2% year-on-year. We expect housing sales to decline sharply in 2023 (-24% to 480,000) mainly due to the impact of the increase in interest rates and the impact of higher…

Spanish economy, Spanish Politics 15th March 2023

Doubts over Housing Law, which aims to cap rent rises, paralyses investment by large funds in Spain

Capital Madrid | There is no respite in the battle over the large print of the Housing Law or, more specifically, over the 3% cap on the annual rent increase in contracts. Unidos Podemos wants the bill to be permanent, while the PSOE only wants to extend it for the next year. The political deadlock is causing growing discontent among funds and companies in the sector. Meanwhile, the government complains…

In Spain, Spanish economy 10th March 2023

Spanish house prices fall -0.8% in 4Q22, first drop since 4Q20

Bankinter | House Prices fall -0.8% in Q4 (quarter-on-quarter) vs. +1.7% previously. It is second-hand housing that has suffered the most in this quarter (-1.4 q/q), while new housing continues to increase prices (+1.9% quarter-on-quarter). In year-on-year terms, prices have slackened to +5.5% in 4Q 2022 (year-on-year) vs +7.6% in the previous quarter. Analysis team’s view: This is the first quarter that prices have fallen in Spain since 4Q20 (a…

Spanish economy 21st February 2023

2022 closes with 650,000 home sales in Spain, up 15% on 2021

Bankinter | Housing Transactions fell -10% in December (year-on-year) vs +11% in the previous two months. This is the first fall since February 2021. Thus, 2022 closed with 650k transactions (+15% vs 2021). On the other hand, according to the Land Registry, Housing Prices fell -0.4% on average in Spain in 4Q 2022 (q/q) vs +0.1% previously. Those of used housing fell by -1.1%, while those of new housing still…

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