Property Market News — Prices, Laws and Trends

A review of the latest property market news. Here you will find articles about prices, regions, legal matters and tips for overseas property buyers.

Los Menceyes to Build Resort in Tenerife for 100 Million Euros

Los Menceyes to Build Resort in Tenerife for 100 Million Euros Belgian group Los Menceyes has acquired a 150,000-square-meter plot of land in Tenerife from Catalan company Mimeisa Asset Management to build a multifunctional complex combining residential and tourist infrastructure. The transaction amount was approximately 20 million euros, while the total investment volume for resort construction is estimated by market sources at a minimum of 80 million euros.

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La Palma Volcano Damages More Than 1000 Homes, Lava Covers 709 Hectares

La Palma Volcano Damages More Than 1000 Homes, Lava Covers 709 Hectares Key Figures The volcanic eruption on La Palma, which began on September 19, 2021, has caused significant damage. According to data from the European satellite monitoring system Copernicus, as of Friday morning, October 1, 2021: 709 hectares covered by lava, including areas reclaimed from the sea since September 28 1,005 buildings affected 870 residential homes destroyed 30.2 kilometers of roads covered by lava (27.7 km completely destroyed) 3,172.9 hectares covered with volcanic ash New Lava Flow Scientists monitoring the island have recorded an additional lava flow emerging from a secondary cone and moving toward the sea parallel to the main flow. Luca D’Auria, director of the volcanic monitoring department at Involcan (Volcanological Institute of the Canary Islands), noted that while this flow appears less intense, it affects areas that lava had not previously touched. He emphasized that the behavior of lava flows largely depends on temperature fluctuations and cooling patterns: “flow superposition, breakouts” and directional changes are possible. D’Auria indicated that the situation represents continuous evolution that cannot be predicted in the short or medium term without constant aerial monitoring.

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Investment Boom in Hotels and Luxury Apartments in Spain

Investment Boom in Hotels and Luxury Apartments in Spain Investors will invest more than 2 billion euros in Spanish premium real estate and the hotel sector, considering the country one of the most promising destinations for capital investment. Belgian developer Immobel, Andorran fund Emin Capital, management company Terralpa and KKH Capital are just some of the players launching promotion and construction of premium-class properties in Spain.

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How much does it cost to buy an apartment, penthouse or villa in Madrid and Barcelona?

How much does it cost to buy an apartment, penthouse or villa in Madrid and Barcelona? The budget for buying secondary housing in Madrid has decreased by 15%, while in Barcelona it has decreased by 22% compared to the previous year. However, both cities have types of housing that buyers are willing to pay more for. This follows from the study “Analysis of Housing Demand in Spain”, based on average prices from the Fotocasa portal in the municipalities of Madrid and Barcelona provinces over the last three years.

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Housing supply for sale in Spanish provincial capitals fell by 4% year-on-year

Housing supply for sale in Spanish provincial capitals fell by 4% year-on-year The volume of available real estate in provincial capitals decreased by 4% in 2021 compared to 2020 due to the growth in the number of purchase and sale transactions. According to a study published by the Idealista portal, the volume of secondary housing on the market amounts to 187,000 homes compared to 196,000 in 2020.

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Housing sales grew by 11.9% despite a 7.9% price increase

Housing sales grew by 11.9% despite a 7.9% price increase The number of housing purchase and sale transactions in August 2021 reached 38,154, with the average price per square meter at 1,396 euros, increasing by 7.9% compared to the same month in 2020. This is evidenced by data published by the General Council of Notaries (Consejo General del Notariado). Apartment sales grew by 13.8% year-on-year and reached 27,599 operations, while individual house transactions increased by 7.1% compared to August last year — to 10,553 operations.

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Housing Prices Will Rise by More Than 4% in 2022

Housing Prices Will Rise by More Than 4% in 2022 Housing costs will finish the current year with a 2% rebound and will grow by more than 4% in 2022, confirming the sector’s return to normal functioning after the pandemic and the resilience of the Spanish real estate market. This is the forecast from the Pisos.com portal, whose head of analysis, Ferran Font, states that “housing has become one of the bastions of stability compared to other sectors that will still need time to return to pre-pandemic levels.”

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Housing Prices in Spanish Provincial Capitals — October 2021

Housing Prices in Spanish Provincial Capitals — October 2021 In Spain, the price of resale housing in the third quarter of 2021 showed quarterly growth of 0.4% and annual growth of 2.5%, with an average price of €1,892/m². However, price dynamics across the country were uneven. This is reflected in the Fotocasa Real Estate Index data, which also shows that the quarterly growth (0.4%) was the first after two years of decline.

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Hoteliers warn of tourist apartment boom as a way to circumvent rent control

Hoteliers warn of tourist apartment boom as a way to circumvent rent control In Barcelona, the number of apartments available for rent has drastically decreased, and more and more owners are considering switching to seasonal or tourist rentals. This is the formula they have found to circumvent the price control introduced in Catalonia. The Generalitat can intervene in regular rentals, but is unable to control tourist or seasonal rentals, where landlords have the right to raise prices without any restrictions.

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Home Sales Showed Best October in 14 Years with 22.2% Growth

Home Sales Showed Best October in 14 Years with 22.2% Growth Home sales in Spain grew by 22.2% in October 2021 compared to the same month last year (46,242 transactions) — the highest figure for this month since 2007. This data was published by the National Institute of Statistics (INE). Taking into account the annual growth in October, home sales have shown positive dynamics for eight consecutive months: +32.4% and +65.9% in March and April respectively, +107.6% in May, +73.5% in June, +53.5% in July, +57.9% in August, and +40.6% in September.

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Home Purchases Rise Amid Price Growth: 5 Indicators That May Signal a Real Estate Bubble

Home Purchases Rise Amid Price Growth: 5 Indicators That May Signal a Real Estate Bubble Spain’s real estate market is on the rise. Sales volume—over 50,000 transactions per month—is growing, and prices continue to increase. Is a new bubble approaching? Currently, there is consensus among experts: the market as such is not in a bubble. However, the Bank of Spain in its latest Financial Stability Report warns of the need to “closely monitor” the evolution of several indicators, “to understand whether they stabilize at current values or, conversely, begin to rise to alarming levels.” The regulator tracks four aspects: supply dynamics, demand, prices, and mortgage lending. At the international level, the continued placement of capital predominantly in residential real estate, rather than in more productive sectors, is causing concern.

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Home prices grew by 8.3% annually in September

Home prices grew by 8.3% annually in September Prices for new and resale housing grew by 8.3% annually in September, according to the Tinsa IMIE statistical index for the general market and large cities. Additionally, real estate prices increased by 1.6% compared to August 2021, demonstrating a trend of moderate growth. “The dynamics of 2021 show growth in housing prices, although quite moderate compared to annual fluctuations,” notes Andrea de la Hoz, senior analyst of the research department.

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