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Index shows Spanish property prices rose by 1% in 2015
Nationally residential property prices in Spain increased by 1% last year with the market having bottomed out and now on the way to recovery, new index figures suggest. The data from appraisal company Tinsa shows that the overall rise in prices was boosted by an increase of 2% in the regions of Catalonia, Madrid, and the Balearics. It is the first time since 2007 the Tinsa index has end the year higher than it started. The index, based on the firm’s own figures relating to new and resale properties, shows that prices rose the most in Catalonia with growth of 5.3%, followed by Madrid up 3.3% and the Balearic Islands up 2.7%. But not all regions did well. Prices fell by 8.5% in Navarre and by 4.3% in Murcia. The Tinsa report pointed out that there are considerable regional variations. ‘It’s important to remember the market is tremendously heterogeneous and evolves at different speeds according to area. Prices are rising in some areas, but still falling in others,’ the index report says. Some 21 provinces and 15 provincial capitals saw price increases in the final quarter of 2015 compared to the same quarter in 2014 but there were falls of more than 5% in nine provinces and 10 capitals. The firm expects 2016 to be a year of stabilising prices rather than a sudden recovery. ‘Prudence invites us to interpret rising prices in terms of stabilisation. The incipient change in the trend is based on market values currently at minimums, so a progressive normalisation of the market can mean large percentage change increases, which can be expected to moderate in the coming months,’ the report adds. Mark Stucklin of Spanish Property Insight believes this will be the case. He forecasts prices to rise by a fraction but showing no signs of taking off. He also pointed out that figures from another appraisal company, Sociedad de Tasación (ST), show that new property prices rose 2.9% in the course of last year, the first time that has happened since 2007, and up from a fall of 2.2% a year ago. The data also shows that new home prices rose 6.2% in Madrid and 4.8% in Catalonia and the firm reports rising sales, especially demand from overseas buyers. Meanwhile, the latest data from property portal Idealista shows that the fall in prices in the second hand homes market moderated in 2015 with values down 0.7% in the final quarter of the year. The Balearic Islands led the way with year on year price growth of 3.3%, followed by the Canary Islands up 1.9% and Madrid prices up 1.6%. However prices fell 6.4% in Extremadura, 6.6% in Castilla La Mancha and 6% in Asturias. Continue reading
Call for owners of British estates to release land for new homes in the countryside
Local authorities should work with rural estate owners to create new affordable homes, according to a new report into issues affecting the UK’s land and countryside communities. Major estates should be encouraged to release land for eight or more affordable homes and the Government should extend its city devolution agenda to include rural market towns, says the report from the Royal Institution of Chartered Surveyors (RICS). It is urging landowners behind England’s 5,000 largest rural estates to release land for affordable housing and the report sets out a number of recommendations as to how central and local Government could better manage rural land and support countryside communities. These include offering measures to encourage large landowners to release space on their estates for eight or more affordable houses and that this might include partial inheritance tax exemptions, allowing heirs to avoid paying taxes on any affordable properties within the estate. It points out that at the turn of the last century, owners of Britain’s largest estates took a more patriarchal approach to the provision of affordable housing. This wasn’t entirely philanthropic as there was a common sense business motive as it resulted in a settled and readily available workforce. But affordable rural housing is fast becoming a thing of the past, the report explains, pointing out that there is a reported 76% shortfall in rural affordable housing. It argues that if rural towns and villages are to thrive, there needs to be action to ensure that workers are available to drive local economies. ‘Without becoming rose tinted, there are elements to the philanthropic approach to estate management that could benefit future generations of workers and apprentices,’ the report says. It also points out that there are some countryside communities where the average cost of a house can outstrip average annual wages 11 times over and rural poverty is a serious issue that threatens to hamper regional growth. ‘We would like to see local authorities work sympathetically with estate owners to encourage the release of land for eight or more affordable houses, based on long leaseholds, which would allow estates to retain long term interests,’ said Jeremy Blackburn, RICS head of UK policy. He explained that a similar scheme has been pioneered this year in East Devon, where Lord Clinton, the largest private landowner in the county, worked with Cornerstone Housing Association to develop 19 affordable homes in the town of Budleigh Salterton, made up of both rental and shared ownership properties. ‘To provide affordable housing for local people is an important step towards building sustainable communities. From the outset we worked with the Exeter based housing association, Cornerstone to provide the right mix of affordable homes for rent and shared ownership to enable young families to stay in Budleigh Salterton and allow this seaside town to thrive for generations to come,’ said Leigh Rix, head of property and land for Clinton Devon Estates. Blackburn added that the report also calls for a further boost for… Continue reading
Property market in Cyprus is stabilising but recovery unlikely yet in coming months
Residential property prices in Cyprus appear to be stabilising but experts are divided on how the market will pan out over 2016. The most up to date figures from the Cyprus Central Bank’s index covering the third quarter of 2015 shows that prices fell by 0.3%, consistent with the 0.4% and 1% falls during the previous quarters. Year on year prices are down 3.7%, an improvement on the previous quarterly fall of 5% and a breakdown of the figures suggest that apartment prices in some locations, most notably Limassol, Larnaca and Paphos are rising, a further sign of stability in the market. The biggest fall in prices quarter on quarter was in Famagusta with a decrease of 1.6%, followed by Nicosia down 1.3% and Limassol down 0.1%. While prices in Larnaca and Paphos rose by 1.2% and 0.2% respectively. Apartments are showing signs of more resilience. While quarter on quarter apartment prices fell 1.5% in Famagusta and 0.6% in Nicosia but increased by 2.1% in Limassol, 1.5% in Paphos and 0.3% in Larnaca. According to Daryl Fitzgerald, director of Fitzgerald Estates Agency in Paphos, pointed out that sales are also improving. They increased by 64% in Nicosia, by 30% in Paphos, and by 28% in Limassol in October. But fell by 1% in Larnaca. He pointed out that the statistics show that 96% of total property sales in Nicosia were registered to Cypriot nationals whilst only 4% were bought by overseas buyers, suggesting that international buyers are not yet coming back to the market in the city. But in Paphos, which has the largest number of holiday homes registered to overseas owners in the whole of Cyprus, there has been a 103% increase in sales to Cypriots in October. ‘From the brink of the financial and banking abyss, Cyprus is steadily emerging a stronger economy and a stronger nation. The financial restrictions are but a memory, our banks have been upgraded and almost given a clean bill of health, the title deeds issue is being dealt with and the buyers have more and more tools to fight the good fight to get the deeds,’ said Fitzgerald. He believes that what is happening in Paphos is interesting as it was the centre of the property bubble on the Mediterranean island. ‘The sudden interest by Cypriot buyers signals that the prices have reached bottom and are stabilising. Cypriots know this and are taking advantage of this once in a lifetime opportunity,’ he explained. However, the latest report from Resolute Asset Management in Cyprus suggests that 2016 is not set to see a revival of the real estate market. It says that while sales increased by 9% in the first 11 months of 2015 compared to the same period in 2014, compared to 2007 sales are still down by 79%. The firm believes that sales volumes will remain low in 2016. Its report suggests that foreigners who are tempted to buy in Cyprus will be concentrated on… Continue reading
