Housing purchase increases in August to wake up the Spanish housing sector
The Spanish housing market is recovering and it is increasing its purchase and mortgage loans, while prices have decreased up to four points in the last month of August.
Housing purchases have increased up to 17.4% in August with regard to the same month last year and the total amount of performed operations has added up to 22.267, according to the Spanish General Council of Notaries (CGN).
Furthermore, the CGN highlights that in the last month of August, 45.3% of purchased houses in Spain have been acquired through mortgage loans.
The Spanish notaries’ main body also highlights that the sale of apartments has increased a 17.7% annually. Thus, second-hand properties are leading this development with a 19.7% increase, whilst free-price houses purchases increase up to 16.6%, much like single-family homes.
However, the property prices have decreased in Spain up to 4%, this does not impede a 5.9% growth in the number of new loans since august 2015. The number of these mortgage operations amounted to 16.094, with an average sum of E125.162. On the contrary, these quantities have suffered a 5.7 points drop.
Specifically, the number of granted loans used to buy properties has increased annually up to 21.3%, up to 11.171 operations, whilst the average capital allocated for properties by buyers has decreased up to 1.7% up until E109.341.
The increase and development in property purchases is proof of a recovery and revival in the Spanish housing market. Additionally, the price fall of properties is further evidence that the market’s “bubble effects”are progressively being left behind.
At Del Canto Chambers we are specialized in tax and commercial law and we can be contacted at email@example.com
Del Canto Chambers’ Editorial Board.