Home buyers in Spain typically offer 20 per cent below asking price, reveals new research.
Data from Idealista.com shows that buyers continue to negotiate for significant discounts on Spanish property, with the average reduction requested reaching as high as 20.9 per cent. This, however, is an improvement from the 21.6 per cent requested in July 2015, which suggests that buyers are becoming happier with housing market conditions.
Indeed, the area where buyers are offering to pay the closest to asking price is Madrid, with the typical difference between asking and offer price 16.5 per cent, down from 19.3 per cent in August 2015, an indicator of how much sentiment surrounding the capital’s real estate has improved. Madrid is followed by Navarra and the Basque Country, where discounts reach an average of 16.5 per cent and 19.7 per cent respective.
The greatest gap is in La Rioja, where buyers demand an average discount of 23.6 per cent, followed by Cantabria (23.5 per cent), Murcia (22.7 per cent) and Valencia (22.6 per cent). The latter two are also some of the most popular house-hunting hotspots for British and other overseas buyers, with the regions notably still renowned for the bargains available on the attractive Costas.
Spanish property selling prices up 20pc
9th August 2016
Selling prices for new-build Spanish properties have risen by more than 20 per cent in the last year.
The increasing average amount being spent on new properties indicates a “revitalised confidence” in the market that the developer predicts will continue in the coming months, with valuation firm Tinsa also showing that the average price of a home in Spain grew 0.8 per cent during Q2 2016.
Javier Ballester, Managing Director for Taylor Wimpey España, comments: “A growing number of buyers are purchasing properties at higher prices, which emphasises the fantastic news that the Spanish market is on a positive trajectory. The strength of our order book continues to build and we would expect the second half of 2016 to be just as exciting and rewarding, if not more so.”
Indeed, the homebuilder’s order book has risen 29.5 per cent in the year to July 2016, with Ballester saying he is “cautiously optimistic” aboutthe future of Spain’s real estate landscape.
Good news for buyers as asking prices dip in Spain
11th July 2016
Asking prices for Spanish property dipped in the run-up to summer, reveal new figures.
Idealista.com’s latest price index shows that asking prices for resale homes in the country fell 1.4 per cent in the second quarter of 2016 compared to the first three months of the year. That fall takes prices to 3.1 per cent lower than they were a year ago, with houses now priced at an average of €1,531 per square metre.
The figures arrive as the pound weakens against the euro, following the UK’s vote to leave the European Union in June. While some have feared a reduced buying power, though, Spain’s lowering prices suggest that there are still strong opportunities for Brits looking to buy abroad, and that Spanish sellers are becoming more flexible and realistic in their pricing to secure sales.
Not all areas saw values decline, though: four of the regions enjoyed an increase in asking prices. The Balearic Islands led growth with prices up 0.7 per cent, quarter-on-quarter, followed by Andalucia (0.2 per cent), Madrid (0.1 per cent) and the Canary Islands (0.1 per cent).
Spanish property prices continue uneven recovery
19th February 2016
Spanish property prices are continuing their uneven recovery, as the market gradually rebounds from the recession.
Two new reports out this week highlight the changing fortunes of the country’s real estate, albeit one at a faster speed than the other.
The latest statistics from the Property Registrars show that prices increased 6.6 per cent in 2015, the same rate of rise the prices recorded in the third quarter of 2015. On a quarterly basis, price growth hit 0.9 per cent, moderating the market’s fall from its peak highs of 2007 to 28.4 per cent.
The latest figures from Fotocasa, though, show that prices actually fell 0.8 per cent in 2015. Nonetheless, this is still a marked improvement upon previous years: in 2014, prices fell 5.7 per cent, while in 2012, they fell 10 per cent. Indeed, 2015 marked the smallest annual decline in prices since the crisis, notes Spanish Property Insight.
The Balearic Islands led the climb from the bottom, with prices up 3.3 per cent over the year – followed by La Rioja (2.4 per cent), Madrid (1.4 per cent) and Andalusia and Galicia (both 0.7 per cent).
Beatriz Toribio, head of research as Fotocasa, explains that the market is now moving at two separate speeds: “Whilst there are parts of Catalonia, Madrid, and the Balearics, where prices have bottomed out, in places like Castile-La Mancha and Extremadura, there is still plenty of room to fall.”
Even within city areas, price performance is varied, with Madrid and Barcelona enjoying strong recovery, despite more unequal growth on their outskirts.
“Prices look to be more or less stable, but still slightly negative at the end of 2015, with little sign of upward pressure on the horizon,” comments Spanish Property Insight.
Nonetheless, conditions have still made a marked recovery compared to the state of prices in recent years. With the Euribor at recent record lows, Spanish real estate is now at the point where it is both affordable and on the cusp of tangible, long-term capital growth.
Indeed, Fotocasa also highlights an increase in mortgage lending in the country, which is helping to boost the market.Google+