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| The data continues to be good for the Spanish property market |
Official notary data for June in Spain has shown that the
rate of mortgage approvals for residential property increased at the highest rate
in a decade.
The statistics show that the 23,223 mortgages granted across
Spain in June of this year was 19.2% higher than in June of last year. The
figure means that almost half – 45% - of the properties purchased in June were
financed through mortgages.
An overall total of 51,477 homes were registered as bought
in Spain in June – an increase of 17.4% over June of last year, and the
second-sharpest monthly increase since back in 2007. The only month in the
decade since then that topped the sales from June was December 2012, when
property transactions were inflated for that month ahead of new rules for
income tax to be introduced in January 2013.
The remarkable sales figures from June are another marker of
the strengthening real estate sector of Spain, which has been boosted by
sustained demand from domestic and foreign buyers alike, along with the
increased generosity and less strict nature of lending criteria from Spanish
banks and the increasing prices across almost every region in the country.
The notary data showed there was a 1.4% price increase in
June of this year compared to last year, with the average square metre of
property selling at €1,358. The average size of mortgages reflected this
increase in house prices, as the average mortgage has increased 6% to €129,704
with data revealing that mortgages accounted for an average of 76% of the total
purchase price of houses bought via mortgages.
The market for new builds is also on the increase, with
sales of new properties rising 10.8% in June compared to June of last year.
