Monday, 4 December 2017

Mortgage Approvals Increase 33% in Spain in Summer

The banks in Spain are slowly relaxing there rules and giving
mortgages again 
Mortgage Approvals Increase 33% in Spain in Summer

The latest data from the Spanish National Statistics Institute (INE) shows that mortgage approvals during July increased 32.9% compared to the same month in 2016. 

The data shows that some 24,863 home mortgages in total were granted across Spain in one single month. The average value of the mortgages also increased 3.8% year-over-year to €119, 613. 

Overall Spanish banks loaned out a total of €2.97 billion in July, an 38% increase on the July of last year. 

Things get interesting when comparing it to the month of June, as mortgage approvals dropped 15.8% in July compared to June. The likely cause for this is that July is the peak of the holiday season, when many potential buyers are focusing on spending time on the beach rather than spending their money on investments. 

Andalucía in the Costa del Sol saw the most home mortgages granted, as 4,577 mortgages were approved in July. This was ahead of Madrid and Catalonia, which saw a respective 4,379 and 4,348 mortgages approved. 

The popularity of Andalucía is kept high thanks to places such as Marbella, which has become one of the most popular choices for second homes in Spain. British, Irish, German, and Scandinavian buyers alike can’t get enough of the area. 

It looks like the uncertainty of an independence “referendum” has done nothing to deter investors in Catalonia. The real estate consultancy firm Sotheby’s International Realty said that they have seen record sales in Catalonia as it appears investors are not nervous at all about the potential secession of the region. 

Idealista collated data for house prices in Barcelona that showed the average property in the city has increased in value by 9.2% across 2017, which is another sign that politics is having little to no effect on investment.

One thing is clear, buying property in Spain continues to be very popular.