Statistics released from the Ministry of Housing have always been in the spotlight because they confuse buyers, property investors, and tend to be useless for marketers.
The best example is the latest data release: in the last 12 months the Spanish market has counted a total 495,684 transactions. It sounds like nearly half a million properties were sold.
At this pace, the country would reach 600,000 transactions by the end of the year and in two years’ time the demand would be equal to the number of offers -no more problems.
But unfortunately it is not that easy and not as good as it sounds. The figure of 495,684 transactions includes repossessed properties and houses that go from developer’s portfolios to banks. Also, it includes properties transferred from banks to their affiliate state agents.
In order to have an accurate index of property purchases, an expert from Bankinter recommends using only the transactions that are affected by newly built properties as a point of reference. That way, the number of property purchases would be between 55,000 and 60,000 units quarterly, according to the national newspaper El Mundo.
Foreigners’ property investment in Spain
It deserves to be mentioned that transactions done by foreigners who are residents of Spain totaled 8,765 during the last 12 month period, which means an increase of 31.8% compared to the previous 12 months. Also, it means that foreigners‘ purchases represent 6.2% of the total transactions.
1) There are not reliable official figures about the Spanish property market. Spain needs to find the right methodology for statistics according to the new market framework.
2) Despite the fact that 495,684 is not the number of units sold out to the final buyer, such an amount of transactions indicates that the market is quite alive. A lot is going on in Spain.
3) Foreigners still have their share in the market.
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