In important cities in Spain, flats are being sold at full speed. Some time ago, in this blog, we wrote an article about the price increase of urban land. We pointed out that Madrid boasted of the highest purchase price in Spain. This fact is logical if we take into account the speed with which property is sold in this city. According to Tinsa, a real estate value assessor firm, Madrid is the city where property is sold within a shorter time frame. In another article, we stated that some areas in Madrid have even reached 2007 prices. In that year, real estate prices reached the highest peak. This fact strikes us because it means that in Madrid the purchase of property is in great demand. Let us take a look at the Tinsa report.
MADRID: IT TAKES LESS THAN THREE MONTHS TO SELL A HOUSE
It is an undeniable fact that at present, Spanish real estate is going through good times. Spain has known lean times regarding real estate and now, at last, the market has revived. Tinsa demonstrates this in the report carried out in the last term in 2017. It reveals that the average period of time in selling residential property is less than 9 months, being exactly 8,6 months. Facts and figures show the reduction of the time because in the previous term it took more than 9 months. We can clearly see that housing in Spain is sold at an increasingly quick pace. However, it is remarkable when we compare the national average with Madrid. According to Tinsa, in Madrid the average period of time to sell property has become less than three months, exactly 2,8 months during the last term in 2017. This fact is very informative: property in Madrid is sold at a very quick pace. Moreover, if the property is located in the centre of the city, sometimes the sale is carried out only after a few days or maybe even after some hours it was put up for sale. This is due to the shortage of housing supply in the area. In a recent article, we wrote about the lack of building land in Madrid. This fact has greatly shortened the period of time that a real estate property is on the market and hence, the buyer has to make quick decisions. In Barcelona the situation is similar because property on sale lasts for a short time even though political instability can be felt. According to the Tinsa report, Barcelona has suffered a decrease regarding real estate deals in the last term in 2017 with regard to the previous one: the estimated time for deals to be carried out has increased from 3,4 to 4,3 months.
GOOD FACTS AND FIGURES IN THE REAL ESTATE SECTOR
According to the Tinsa report, if we take into account the number of mortgages that have been raised during the last term in 2017, Madrid is in the lead with an average of 160.062 €. Madrid is followed by the Balearics ( 153.117 € ) and Barcelona ( 145.848 € ). The highest average amount of mortgages raised has been in the last term in 2017. If we add to this general price increase a rise in buying and selling as well as the concession of more building licences, then we can state that the Spanish real estate sector is booming.
Picture 02: Ánglea Ojeda Heyper