Quarter 3 – 2015 – Spanish & Tenerife Property Market Update
Christmas is coming and the geese are getting fat…let’s see if property purchasers and estate agents in Tenerife have got any fatter over the last 3 months…
As we’re closing in to the end of 2015, Quarter 3 showed increases in many areas not only through the last quarter but also the previous year…so yes, in answer the question above, estate agents have generally put on a little weight…
As always, whether here or in your home country, there will always be a difference of opinions regarding exact figures.
Different methods of calculating sales prices and housing data in general will always result in differing opinions…anyway, that aside, let’s crack on and see what the general consensus was for Quarter 3 of 2015.
The General Council of Notaries reported that not only did total sales rise during the quarter but according to their figures, they noted that house prices rose too in September, notably the first time that they’ve managed to report a rise in almost 12 months.
Ignacio de la Torre, (I hope you’ve been paying attention as I’ve mentioned him before in previous articles) – he’s a partner at the financial advisors called ARCANO – has given 10 reasons why he thinks that the crisis in Spain has finally come to an end.
He cited the following as having influenced his reasoning behind his comments:-
- Rising house prices
- Rising land prices
- More affordable housing
- Mortgage lending on the up
- Sales of property rising
- Falling unemployment
- Shrinking new home inventory
- Room to grow for new development
- Rising population
- Rising consumer confidence
As I mentioned at the start of this article though…all of the above are open to discussion, depending upon which data provider you’re talking to, so he can pretty much say what he likes and not be argued against however; he’s not where he is just for blowing out a load of hot air for no reason.
Foreigners bought a total of 12,535 homes during the third quarter this year, bringing the total properties sold to foreign buyers during the first 3 quarters of this year to 34,758.
Clearly, this year’s continual surge in Sterling – above €1.40 as I write, last seen in 2007 – has of course helped keep the British buyers at the top of the “Foreign Buyers” table for Spanish properties, where they’ve been for many years.
With Brits having bought 2,895 homes during Quarter 3, this puts them well ahead of France, Germany and Belgium with those countries being 2nd, 3rd and 4th respectively in the table of foreign buyers.
Recent data from mortgage company Conti suggests that 46% of mortgage enquiries between January and September this year from British clients were for property purchases in Spain as well, so it looks like the typical expat-British buyer aged between 45 & 64 with a cash budget of €200.000 may be morphing to a younger profile with a mortgage.
As sales climb and foreigners buy more and more, there’s been a noticeable decline in Russian buyers, reported by some to have collapsed by 46% – likely due to their well-documented home affairs.
What’s happened in Tenerife during the 3rd quarter of 2015?
Tenerife has been no slouch either during July, August and September this year. Rising prices and sales have been the order of the day along with a clear increase in cash buyers from the UK taking advantage of the fantastic exchange rate and quite an obvious rise in Russian owners selling up.
With the property data proving positive here and also exciting news from AENA, the Spanish airport agency, that has recently had confirmation from the Canarian Government that the south airport has had its plans for a new airport terminal granted, everything looks positive and rosy.
Yes, looking nice and rosy but with news of more than 1 million new properties in unsold stock affecting the country, Spain is maybe not looking as good as it should for its size and potential however, generally speaking, with each passing month and most data points showing a positive movement, I think we can safely assume that the crisis has now come to an end.
Now, where’s the Champagne…???