Real estate boom: Home sales continue to rise in Spain along with property prices and mortgage numbers

HOME property purchases in Spain went up by 3% in May compared to a year earlier with prices rising by 1.3%, according to figures from the General Council of Notaries.

Despite high interest rates, the notaries said there was an increase of almost 10% in the number of new mortgages granted.

The figure continue the upturn recorded in April which was a busy month due to the Easter holiday period.

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In May, 62,485 home sales were recorded with flats increasing by 2.9% year-on-year, to 48,081 units; while family homes went up by 3.2% year-on-year, reaching 14,404 units.

House sales grew in 13 regions but fell in the remaining four, namely: Navarra (-30.8%), the Balearic Islands (-11.9%), the Canary Islands (11.1%) and Murcia (-1.6%).

The biggest sales rises were in La Rioja (63.8%), the Basque Country (17.8%), Extremadura (15.6%), Galicia (14.6%), Asturias (9.6%), Castilla y Leon (8.1%), Aragon (8.1%), Cantabria (7.1%), Madrid (5.1%) and Castilla-La Mancha (3.1%).

The number of mortgages granted in May grew by 9.8% year-on-year, to 28,909 loans with the average amount rising by 1.8% year-on-year, hitting €150,219.

The percentage of home purchases financed by a mortgage stood at 46.3% and the size of the loan accounted for an average 71.9% of the price.

The average price per square metre stood at €1,681/m² in May, which is 1.3% more than in the same month a year earlier.

Apartment prices rose by 3.4%, to 1,890 euros/m²; while those of family homes stood at 1,300 euros/m²- 3.3% less.

The biggest price rises were in Galicia (21.3%), Cantabria (11%) and the Valencian Community (10.1%).

Price falls were recorded in Castilla-La Mancha (-11.6%), the Basque Country (-7.8%), Asturias (-5.7%), the Balearic Islands (-5.4%), Murcia (-2.4%) and Extremadura (-1%).

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