#Propertystatistics

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New Study of Spanish Property

A new study of the Spanish property market has brought to light some interesting facts about the Spanish rental market.

Average Spanish Rental Home: 90m² Apartment costing approximately €540 a month.

Spanish rental market will grow by 10% in 2016.

Rental prices in the Canary Islands, Cantabria, Madrid, Pais Vasco and Catalina are higher than the rest of the country.

37% of rental apartment tenants are single parent families.

28.5% of rental apartment tenants are single people.

23.9% of rental apartment tenants are a family of two adults or more with children.

Approximately 22.7% of Spanish residential property market is rentals.

Approximately 4.2 million primary residences in Spain were rented out in 2015.

The gross average return from rental properties in Madrid, the Balearic Islands and Cataluna is higher than in the rest of the country.

Gross average return from rental properties in Spain for 2015 was 5.4%.

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The Future Looks Bright

Most experts and official bodies now agree that the Spanish property market is set for a continued moderate and sustainable recovery during the rest of 2016 and perhaps also into 2017. The sale of homes will most likely rise by about 10% in 2016; new-builds will rise by 10-12.5% and the number of new homes on the market will fall by about 25% as the industry tries to balance the supply and demand. New homes are concentrated in areas where there is low demand while in cities like Madrid, the Balearics and Barcelona where there is a high demand there is a continued shortage of new homes. Prices are also set to rise by about 3.8% over the course of 2016 with the highest increase in prices concentrated in the Balearics, Valencia, Catalonia and Madrid. In Catalonia prices are predicted to rise by 4.4% over the course of the remainder of 2016.

The number of families living in rented apartments rather than in their own homes looks like it will increase and as the economy improves and mortgages are more readily available people will have more options open to them. In 2015 17% of all Spanish property sales were to foreign buyers with 39% of that being in the Balearics, 37% of the total number of foreign properties bought were in the Canary Islands and 34% were in the Valencia Region.

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Spanish House Price Index

 Figures for the First Quarter of 2015 Property Prices

This week the Housing Department in the Ministry of Public Works released statistics about the monthly house price index.  The statistics were compiled by the valuation company Tinsa. The overall impression of the gathered statistical information is that house prices in Spain are continuing to fall on a national level.

Continued Drop in House Prices

The Tinsa information released in May 2015 shows house prices down by 3.6% over the course of the last 12 months. Leading the price drop are major Spanish cities and provincial capitals where house prices are down 4.9%. Along the Spanish coast cities show a 2.3% drop and in property prices and in the Canary Islands and Balearics property prices are down 2.1%.

On average the price of Spanish property fell by 0.11% since the previous year and 0.36% this quarter. This figure is based on 92,563  valuations. Spanish property prices peaked in 2008 exceeding €2,100 per meter square and taking the inflation rate into account the prices have decreased by 36.3% since then. In the first quarter of 2015 Spanish property sold at an average of €1,458 per square meter. These statistics show that it is still a buyer’s market and that now is the time to invest in Spanish property while prices are still low or dropping.