Spanish property market continues recovery
The Spanish property market was decimated by the financial crisis with prices falling dramatically. But the recovery is now well underway.
Figures from the country’s statistical unit showed the number of new mortgages registered during June was 21,454. This represents a 26.3% rise on the same month in 2014.
The average loan size was 4.2% higher than a year ago, the agency said.
A separate report from Spanish property registrars found much of the recovery was due to foreign buyers returning to the country.
In total 12.82% of all sales were to non-Spanish buyers, with Brits leading the way. More than 2.5% of all property sales in the country were to British buyers, ahead of French, German and Belgian buyers.
This report said prices had returned to within 30% of their pre-crisis levels and that confidence was returning to the Spanish property market.
Earlier this year Your Mortgage reported how Spain remained the top destination for Brits buying a property abroad.
The strength of the pound against the euro and better economic conditions had tempted more people to the country, Conti reported.
Clare Nessling, director at Conti, said: “With the strong pound boosting buyers’ budgets, a little slice of life overseas is proving to be even more tempting, especially when you compare the cost with overheated parts of the UK market.
“Record low borrowing rates and bargain prices are also luring investors to overseas property markets, with a sizeable shift in interest for Spain in particular over the last six months.”