Strong increase in home sales in the first quarter
Home sales rose 13.4% in the first quarter
Favorable winds are blowing for the house market, and not only in the rental section. This situation is reflected in the latest Real Estate Registry Statistics, prepared by the Colegio de Registradores de España, which shows that the price of housing increased by 9.4% in the first quarter of 2018.
According to the same study, home sales between January and March stood at 128,990 operations, 13.4% more on yearly basis and 15.3% more than on the previous quarter. Since 2008 there hasn’t been similar sales figures.
Autonomous communities that registered the highest number of home purchases in yearly rate were Andalucía (24,208), Catalonia (20,756), Community of Valencia (19,876) and Community of Madrid (18,855), while the largest quarterly increases happened in Basque Country (36.27%), Murcia (31.88%) and Navarra (21.43%).
In the last 12 months, 479,475 operations were registered, which is the highest yearly result since the first quarter of 2009. The provinces that registered the highest number of home sales were Madrid (72,131), Barcelona (54,462), Alicante (36,447), Malaga (30,530), Valencia (27,609), Baleares (16,211), Seville (15,320), Murcia (14,251), Las Palmas (12,386), Tenerife (11,952) and Cádiz (11,483).
22,229 operations were registered in new housing, and 37 provinces have increased the number of registered sales. The greatest increases were achieved in Castellón (180.49%), Álava (115.08%), Teruel (69.09%) and Vizcaya (64.31%). In addition, 28 provinces have achieved quarterly increases of two or more digits.
Regarding second-hand housing, 106,691 transactions were registered, which is the highest figure since the second quarter of 2007. In this line of growth, 43 provinces have increased the number of purchases. In this case, the highest growth rates were in Guipúzcoa (38.95%), Vizcaya (31.95%) and Murcia (30.35%).
The British continue to lead, but the ‘Brexit’ wreaks havoc
The purchase of housing by foreigners decreased subtly from 13.6% to 13.1% of total operations in the first quarter of 2018, but with an increase in absolute terms due to the increase in the general number of transactions, since in the fourth quarter of 2017 some 15,000 transactions were registered, and from January to March 2018 the number was around 16,500.
The nationality of buyers maintains the normal positions. The British continue to lead with 14.6%. “This figure is very low and the cause is ‘Brexit’, since this percentage represents only a third of the sales that happened before the UK decided to leave the European Union.”, the Colegio de Registradores de España points out. The second and third place are for Germans (7.9%) and French (7.6%). In the last year, foreigners have carried out close to 63,000 home purchases.
The provinces with the highest purchase rate by foreigners during the first quarter of the year were Alicante with 41.05% and Tenerife with 40.78%. After these two provinces are the Balearic Islands (31.72%), Malaga (30.57%) and Girona (26.94%). These are the five provinces that present the highest rate of purchase of housing by foreigners during the last years, with superior results when compared to the rest of the provinces.