Property sales are beginning strongly in 2018: In the past ten years, January saw the best figures

Operations and transactions in the property market have been record high for 10 years


Property purchases began with record figures in the year. In January, 47,289 transactions were recorded, the highest figure since May 2008 and 23.1 percent annually, according to data from the Spanish National Statistical Institute (INE). Again, the sale of second-hand properties takes on most weight, reaching its highest figure since the boom years in the first month of 2018. for sale


Following the closing 2017 with over half a million property sales, a figure unknown since 2008, January 2018 kept up the residential sector's rising trend and normalization following the worst crisis. 47,289 operations were closed in the first month of the year, an interannual increase of 23.1% according to the National Institute of Statistics (INE). This total turnover is the best monthly figure since May 2008. (49,647).


According to property type, transactions on second-hand homes accounted for 82.5% of all transactions, compared with 17.5% for new buildings. Sales of used properties grew 23 per cent year-on-year, reaching 39,017 transactions in the middle of the property bubble, their highest figure since June 2007. As for new buildings, growth was 23.5%.


By regions, Asturias (55.7 percent), the Valencian Community (40.5 percent) and Murcia were the highest yearly increases in January (38.8 percent ). Extremadura (1.3%), Aragon (5.2%), La Rioja (both 8.2%) registered the lowest annual rate of fluctuation in January.


For Fernando Encinar, Head of Idealistic Research, "January is usually a good month for sales, but early 2018 was particularly positive, as regards the percentage of growth and the number of transactions closed, because these are the best figures since May 2008. At the outset of this year, a sector that adds to the strength of the normalization process is optimistic. It is also a sign of widespread recovery of demand even if it is at various rates that the number of operations has increased in all autonomous communities except in Extremadura. However, the data should warn against starting buildings in some cities immediately, where supply is decreasing significantly when demand increases or prices may begin to rise more rapidly and aggressively."


Take these things into account if you plan to invest in Spanish property


The interest rates of mortgage loans are low now, and if you invest in property in Spain you can earn more than 7 percent each year. But where should you invest and what are the fundamental things that you have to consider?

Rental


Choose the city very carefully because the prices and their future possibilities differ widely. Greater cities like Madrid, Valencia, Seville, A Coruña, Santander, Bilbao and Zaragoza, thanks to their size and attractive living spaces, make good investments.


That said, buying where you live always makes a lot of sense. The closer you come, the easier it is to find tenants and solve their problems.


Some of the neighborhoods in the city center may be more popular than others, although there may be more profits from other areas depending on the type of tenant you are looking for and on your budget. It is also worth looking at the emerging areas in order to plan for the future.


Fundamental considerations


It may seem obvious, but try to buy apartments below the average price of the market. Do a complete market study of all fields you plan to buy in order to ensure that you do not pay too much.


What are the cost of maintenance? In older buildings, costly repair work is quite common, while newer buildings can be guaranteed for damage for a number of years. How many neighbors in the building are there, too? Depending on this, common repair costs will have to be split between more or less people.

Similarly, renovation work may be required in the apartment itself. Find out carefully how costly this will be before you jump and buy, because it can set you back a long time and jeopardize your investment profitability.


For the purchase of a new property, IVA (the Spanish VAT version) shall be payable and ITP (the Capital Transfer Tax) shall be applicable to all purchases of used properties. Bear in mind, therefore, that between 6% and 11% of the purchase price, these extra costs take time to earn money.


The purchase on the shore is always a sure bet. The Spanish beaches will always be an attraction for both national and international tourists, so the purchase of a property can be very long-term investment, especially when well connected with many services in the immediate vicinity.


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