Spanish House Prices Up 7.2%
Despite concerns that the mainland housing market may be on the brink of a slowdown, or even a reversal, figures just released by the Spanish government reveal that house prices across the country have risen by the annual equivalent of 7.2% in the first three months of 2007.
However, this is in fact the smallest quarterly increase recorded since 1999 and is some way below house price inflation figures for previous years – such as the 18.4% rise recorded in 2004. Suggesting that the market is still growing, but slowing.
This scenario would seem to be supported by other recently released figures from the Sociedad de Tasación – one of Spain’s largest mortgage lenders. Which show that new build prices in provincial capitals rose by 7.4% over 12 months to the end of June 2007.
Estate Agent Regulation on Horizon
According to Spain´s Housing Minister, Maria Trujillo; “You need more qualifications to sell a lettuce in Spain than a property, and that won’t do.��?
And as a result her government are developing plans to reverse the liberalization of the market affected by their conservative predecessors, the Partido Popular. Who did away with official qualifications and the registration of real estate agents in 2000.
Proposals currently are solely at draft stage and there is no date set yet for the introduction of any legislation. However new regulations are expected to include an entry level minimum qualification for all agents, alongside an official register and measures to ensure professional indemnity.
Latest Lanzarote Property For Sale
Lanzarote Guidebook now features over 1200 properties for sale across the island. With new listings being added daily. As well as hundreds of long term rentals.
Amongst the pick of the bunch this month in Playa Blanca is a great value bungalow (pictured), which is just a few minutes walk from the beach at Playa Flamingo and the harbour. Given its location this property offers excellent rental potential and is available at €169,000 (currently around £115,000) through Freedom Properties.
You can also browse a big selection of properties for sale in the other key resorts of Puerto del Carmen and Costa Teguise. Such as a fantastic 3 bed villa – with a one bed cottage attached – close to the new golf course in Tias. The villa has 3 bedrooms, 2 bathrooms, very large kitchen, lounge, outdoor dining area, dining room and covered terrace. As well as a lovely mature garden with it’s own irrigation system. The property also boasts a swimming pool and sauna, and is available at €475,000 with Puerto del Carmen based estate agent My Home In Lanzarote.
Cost Of Mortgage Borrowing Increases
The cost of Spanish mortgage borrowing rose for the 21st consecutive month in June and now stands at 4.506% – it’s highest level in over seven years.
Figures complied by the Spanish Mortgage Association reveal that the cost of servicing an average variable rate mortgage of €147,268 now stands at €863 per month. An increase in monthly repayments of around €95 per month versus this time last year.
This is still a more advantageous mortgage rate than can be currently secured in the UK. But Spanish lenders also appear to be taking a leaf out of their British colleagues books by increasing ancillary costs – such as arrangement and administration fees. Which in combination with repeated rate rises is slowly starting to reduce the number of mortgage applications being made by prospective purchasers.
The Euribor rate is based on the base interest rate of the Eurozone, which has risen from 3.5% in March 2007 to 4% in early June. Many market observers, including some of Spain’s biggest banks, expect this rate to rise by at least a further 0.5% by the end of 2007.
