There has been a sharp increase in the number of home sales in Spain, according to the latest figures from the National Institute of Statistics (INE).
Excluding subsidised housing, there were 39,625 residential property sales inscribed in the Land Register in June, up 19% on the corresponding month last year, having increased an annualised 25% in May.
Mark Stucklin, a Barcelona-based Spanish property market analyst, points out that monthly home sales have now risen on an annualised basis almost every month since March 2014, when the Spanish housing market began to recover after six years in recession. Sales have only dipped in two months since then, including an 8% fall in April this year - a decline that was due to seasonality.
“The INE’s figures are based on sales inscribed in the Land Register, not actual sales that took place in the month. As such they lag the market by about two or three months,” Stucklin explained.
According to the latest Spanish housing market data, new and resale home transactions both increased by 20% in June, the first time new home sales have risen by 20% since August 2010, which according to Stucklin was due to banks repossessing new homes from developers, not real sales.
“I expect new home sales to maintain a growth trend for the next few years, as off-plan sales lead to completions that show up in the official figures,” said Stucklin.
In terms of selected regions that foreigners tend to buy property in Spain, Catalonia is witnessing the best of the growth in sales this year, with residential transactions up 26% year-to-date in Tarragona province, home to the Costa Dorada, and Girona (Costa Brava) not far behind on +24%, followed by Barcelona up 22%.
The figures also reveal that home sales are also up in Asturias (25% ) and Cantabria (21%), the Balearics (20%), and Alicante (18%).
Commenting on the local market, Stucklin said: “Brexit has done little harm to the local housing market despite being the most popular destination for British buyers.”
Brexit may be having more of an impact on the Costa del Sol – the second favourite destination for British buyers – where sales are up 12%, which sounds good but is below the national average.
The Spanish property expert continued: “Malaga province, home to the Costa del Sol, was a star performer in the year before Brexit.
“Looking at annualised sales for June, Valencia City increased the most with sales up 43%. Other hot markets in June included Murcia [+27%], the Balearics [+23%], and the Canaries [+22%].
“Castellón province, home to the Costa del Azahar, is still shrinking both on a monthly and year-to-date basis compared to the previous year, which goes to show that some areas have still not put the crisis behind them.”