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Spain New build sales rise: bucking trend?

The number of homes sold in Spain in June experienced a 6.4% decline compared to the same period last year, amounting to 53,999 transactions, as reported by the National Institute of Statistics (INE).
This marks the fifth consecutive month of declines in the housing market.
The sale of resale properties saw a significant decrease of 9.7% during the sixth month of the year, with a total of 43,532 transactions, while transactions for new build properties increased by 10.7%, reaching 10,467 operations.
On a month-on-month basis, Spanish property sales fell by 3.8% in June, and the year-to-date decline reached 4.5%.
Only three regions saw increased transactions (Navarra, Asturias and Comunitat Valenciana), while the rest experienced year-on-year declines.
The drop in property sales in Andalucía and the Balearics was higher than the national average, with -9,3% and -12,6% year-on-year.

Fast Facts:

  • Home sales -6.4% year-on-year
  • Resale property sales -9.7%
  • New build property sales +10.7%

Before we get too excited by the new build figures being up last year, remember that with off-plan properties there is always a delay before the projects are completed and ownership registered at the land registry, so in a way much of that figure represents past activity, at least in the way we understand it to mean as far as sales are concerned.

Spanish Property Insight owner and top expert for all things related to market data Mark Stücklin explains “The INE get their data from the registrars (MITMA gets it from the notaries). New build sales completions today reflect contracts signed in the past. There’s a lag reflected in the data. If the data existed in aggregate for new contracts I suspect you would see a decline in line with the resale market, though maybe not as pronounced as I assume the limited stock of new homes for sale off plan / under-construction get a slightly bigger slice of the market at times like this.”

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