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Property prices in Spain rose in February as recovery takes hold
The prices of homes in Spain increased by 0.6% in February year on year, taking average values to €1,233 per square meter, according to the latest data from the General Council of Notaires. Prices are strongest in the single family home sector with growth of 3.8% year on year while the price of apartments fell slightly by 0.2% compared to February 2015. The average price for single family homes is now €1,007 per square meter, for second hand apartments it is €1,350, up 0.6%, and for new apartments it is €1,619 per square meter, a rise of 0.3%. At the same time sales are rising steadily, up 22.9% year on year with the growth being led by apartments with transactions in this sector up by 25.9%, the data also shows. Sales of single family homes also registered a significant increase year on year with growth of 22.6% but new homes are not as popular with transactions down by 5.1%. The report from the Notaires states that in general terms the figures reflect an underlying trend of recovery. The recovery is also being reported by estate agents. Barcelona based Lucas Fox International said it recorded a 33% increase in sales in 2015 and much of the growth is coming from Spanish buyers rather than from those from overseas. Property sales to Spanish buyers were up by 86% year on year, according to the company’s latest market report and it said this is a sign that the Spanish property recovery is well underway. International buyers, however, continue to dominate high end sales. Some 17% of prime market buyers in Barcelona purchasing property above €950,000 were to national clients compared to 11% the previous year, the majority of whom were purchasing primary residences. ‘The increased market activity by local buyers was the standout trend in 2015. Spanish buyers have been active predominantly at mid end of the market, attracted by property prices at an eight year low, a recovering economy and increased lending from Spanish banks,’ said Tom Maidment, partner at Lucas Fox. ‘For several years the market has been dominated by international buyers and whilst foreign investors still account for the majority of our sales, the number of local buyers is clearly on the rise and we expect this trend to continue apace throughout 2016,’ he added. Sales to the British were also up by 50% in Barcelona, and in Lucas Fox’s Ibiza office, UK buyers accounted for more than two thirds of home sales, primarily due to the strong Pound against the Euro during 2015. The Barcelona office also saw a significant rise in Dutch and US buyers during 2015. The number of Russian buyers has dropped substantially, however, and are being replaced by buyers from the Middle East. Sales to the Spanish were also particularly strong in Valencia where transactions to local buyers more than doubled. There were also significant increases in Maresme, the coastal area to the North of Barcelona, and… Continue reading
Demand for office space in London remained in quiet first quarter of 2016
Demand for office space in London remained robust through the traditionally quiet first quarter of 2016 with 3.1 million square feet leased by companies, a new report shows. This was marginally below the 10 year average of 3.2 million but despite fears that economic headwinds and the possibility of the UK leaving the European Union could dampen demand, according to the analysis from global real estate advisor CBRE. The largest deal in the first quarter of the year saw Thomson Reuters acquiring 315,400 square feet in Canada Square in the Docklands, lifting overall take-up for the quarter. The data from the report also shows that the amount of office space currently under offer remains unchanged from the previous quarter at three million square feet, having been above the 10 year average of 2.8 million square feet since the beginning of 2014. It explains that the development response has so far tracked demand, with supply increasing by 2% over the course of the quarter to stand at 12.2 million square feet, some 17% below the 10 year average. ‘Between a weak outlook for global economic growth and an upcoming vote on EU membership, businesses have had to contend with a heightened level of uncertainty,’ said Emma Crawford, head of Central London Leasing at CBRE. ‘That demand for office space has remained so resilient speaks volumes for London’s ongoing attractiveness as a global hub for those companies hoping to lay down roots or expand their footprint in the capital,’ she pointed out. ‘Whilst the high level of space under offer is particularly encouraging, we anticipate a more subdued second quarter as the referendum vote gets closer. We will be on course for a rebound in leasing activity in the second half of the year provided the UK votes to remain in the EU,’ she added. Continue reading
Residential sales in Hong Kong up 45% month on month, prices down
Residential sales in Hong Kong increased by 45% month on month in March from their lowest level in 25 years, reaching 17,106, according to the latest data from the Land Registry. The rise was attributable to a number of primary project launches after Chinese New Year and a reviving resales market, with some flat owners willing to cut prices, says the latest market analysis from international real estate firm Knight Frank. As a result, prices fell further, with official figures showing that home prices had decreased for five consecutive months, for a cumulative decline of 11%. But the market continued to polarise, with the luxury sector remaining relatively resilient, it explains. Reported landmark deals of the month included an en-bloc transaction at South Bay Close in Repulse Bay for HK$668 million, or about HK$30,000 per square foot and a unit in Cluny Park in Mid-Levels West, which sold for over HK$53,000 per square foot, the highest price in the development. With potential buyers expecting increasing supply and a further drop in home prices, residential sales are expected to fall to around 50,000 units this year. ‘Although luxury home prices overall are expected to drop 5% this year, prices of super luxury houses and apartments should remain firm. Mass market prices could drop up to 10% in 2016,’ the report says. In the prime office market a lack of available space continued to limit Grade A leasing activity, the report also shows. To avoid high rents in Central, some firms with a long presence in the area relocated to non-core areas as they became increasingly cost conscious, the report explains. It also points out that high office rents in Central have been supported by a lack of supply rather than strong demand as office leasing demand from both domestic and overseas firms has weakened in recent months. The Kowloon Grade A office leasing market saw a number of relocation deals involving insurance sourcing companies in March. Office rents in Kowloon East, however, have been under increasing pressure from the increasing supply coming on line, the report says. ‘Despite the economic uncertainties in Hong Kong and the mainland, office rents in decentralised areas could drop 5% in 2016 due to abundant supply in the pipeline. This polarisation trend is expected to continue until the new supply is absorbed and the market regains balance,’ the report adds. It also says that notable declines in retail sales and visitor arrivals continued to put pressure on retail property rents and adds that the retail property landscape will continue to evolve to cope with the downturn. Continue reading
