Spain home sales up 19.4% yoy in June
Housing sales in Spain increased by 19.4% year-on-year in June to 36,856 units, the largest figure since January 2013.
real estate sector
Spanish banks’ exposure to bricks and mortar is still worrying
Spain’s banks currently have on their books something close to 213 billion euros in property risks (assets and loans). Is that a lot or not? Judging by the recent reports from the Bank of Spain or Moody’s, the total is rather worrying: and we are not talking about small change but about the fact that our lenders still have an amount of property on their balance sheets equivalent to 20% of GDP.
The “Fine Post-Brexit Rain” Has Already Dampened The Property Sector
After Standard Life announced on Monday that it had suspended withdrawals from its UK Real Estate Fund (2.9 billion GBP in assets), yesterday the whole sector (property funds), with assets under management of approximately 9 billion GBP, decided to follow suit. The two funds which stand out by size are: M&G Property Portfolio (4.4 billion GBP, the biggest) and Aviva (1.8 billion GBP).
Spain’s Property Crisis About To Pass Into History
Eight years after the real estate bubble officially burst, all the existing indicators point to the sector’s crisis being over, although there are still some loose ends and some kind of legacy, such as the banking sector’s non-performing loans. But the data shows we can definitively put behind us an enormous problem which was a threat for the economic system for too long.
From Metrovacesa To Merlin Via The Crisis
Before the crisis, Metrovacesa was one of the five big Spanish property companies, born out of Madrid’s expansion with the construction of the underground in the first few decades of the XXth century.
Spain 3rd Most Attractive European Property Investment Hub After Germany, UK
Spain is the third most attractive European country for property investment in 2016, while Madrid is the continent’s second favourite city to invest in after London, according to the CBRE report “Global Investors Intentions.” The report also highlights the increasing sustainability of the European property sector, in comparison with last year’s performance and with other regions across the globe.
Spain M&A Grows 185% To 5.305 Bln Euros In February
M&A transactions in Spain soared 185.56% in February to 5.305,23 billion euros from a year earlier, according to consultancy TTR’s monthly report. The real estate sector has been the most active so far this year, with a total of 61 operations, followed by the Internet and technology sectors, with 20 and 17 transactions respectively.
What will happen with housing prices in Spain?
According to Bankinter’s analysts, there will be a moderate increase in housing prices (around 3-5 % between 2016 and 2017), and it will only happen in certain places. So Spain’s property prices will not return to the pre-crisis record highs, but will reach levels similar to that in 2004.
Increased Demand For Spanish Property Still Not Reflected In Prices
Spain’s property market is consolidating its recovery in the residential segment, while commercial real estate is clearly in an upward trend. But the fact that Sareb still has a substantial amount of property assets to dispose of, some of them with discounts of over 50%, will keep a lid on prices for the time being.
Spain Property Investment Up 67% In 2015; But Lack Of Opportunities Could Now Weigh
Investment in Spain’s property sector rose 67% to a record 11.7 billion euros in 2015, according to a study by consultancy firm BNP Paribas Real Estate. This figure is 25% higher than the total investment recorded in the pre-crisis years. But the consultancy predicts that the scarcity of adequate investment opportunities will see investment stabilising at around 8.5 billion euros.