Property prices in Spain can only go up from now on.

By | December 8, 2014

Property prices in Spain can only go up from now on. According to the Financial Times, Spanish house prices are rising for the first time in more than six years, suggesting that the country’s economic recovery is gaining traction even in sectors that were hit hardest by the recent crisis.

Permits issued for building new homes in Spain have increased dramatically this year with 2,883 handed out in September alone, says the ministry of public works. By the end of the third quarter of 2014, a total of 27,598 new build licences were granted by the College of Technical Architects, compared to 22,817 in the same period last year. And the amount of permits issued in September this year was up 31.6% on the same month in 2013.

Although these figures are encouraging in terms of the housing market recovery, they remain a far cry from their peak in 2006 when over 600,000 were issued in the first nine months of the year. But the ministry says the upsurge of 20.6% so far this year is a positive sign that interest in buying property in Spain is on the up.

In addition to this, the number of new mortgages signed in September this year reached 19,323, a 29% increase on the same month in 2013. According to figures published by the National Institute of Statistics, the September figures confirm a tendency that began in June 2014, with two-figure year-on-year increases being posted every month for the past four months.

June 2014 saw an almost 19% rise in the number of new mortgages being signed compared with the previous year. This was followed by a 28.8% year-on-year increase in July, and a 24% rise in August. The average value of the mortgages being signed in September was 107,850€, a 10.6% increase on the same month in 2013, whilst the total capital loan increased by 43.5% compared with the previous year, topping the two billion euro mark.

Courtesy: The Financial Times

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