Mortgage approvals in Spain up 20%.
Evidence that the Spanish property market is continuing on an upwards trajectory—and that confidence in the country’s economy is also rising—comes with the news that there was a 20% increase in the number of new mortgages granted in 2015 compared to the previous year. When the ‘credit crunch’ hit Spain in 2007, the numbers of home loans approved plummeted as banks that were overexposed to debt closed the financial taps. EU rescue funds were released in the hope of encouraging lending, but banks in the main didn’t pass these on to customers, instead preferring to reduce their own exposure until the financial and property markets picked up. This had a further dampening effect on the real estate sector, as in effect it limited the market to cash-buyers, making it a challenging environment for the property industry as a whole. However, in hotspots like Marbella the top-end luxury real estate market has been on an upward curve for several years—a trend that has now filtered through to the Spanish property market generally, with all data showing increasing sales and prices across the country in 2015, along with positive economic indices such as a rise in GDP and fall in unemployment. Bright future for Spanish real estate market As a result, major financial institutions have forecast a brighter outlook for Spain. The banking sector has stabilised again and returned to normal levels of lending activity. Indeed, Spain saw 244,827 mortgages approved last year compared to 204,302 in 2014, with Andalucía leading the country in terms of the number of loans given—the 45,971 mortgages approved in the region were worth a combined €4.159 billion. Across Spain a total of €25.934 billion in property loans were made, providing liquidity to the real estate market and spurring on the positive sales figures for 2015. According to the Ministry of Development, last year saw property sales rise by 9.8% to 401,281 units. A significant proportion of sales are still going to cash buyers, but there is no doubt that mortgage availability is improving and broadening the range of buyers. Altavista Property has long recognised that a lack of finance has had a constraining effect on many potential homebuyers. By utilising our considerable experience and contacts in all aspects of the real estate industry we have been able to offer a range of finance packages that have been very popular with our clients. This is something that we continue to do, especially for the purchase of new developments. Should you need any advice on this matter do not hesitate to contact us. We are confident that we can help you finance the purchase of an apartment or villa in one of our exclusive projects.
