housing sales

The Catalan economy grew by 1.3% from July 2013 to June 2014. However, the economic recovery has particularly sped up and got stronger over the second quarter of 2014, when it grew by 0.6% in quarterly terms, according to data released on Wednesday by the Catalan Statistics Institute (Idescat) and the Catalan Finance Ministry. The GDP growth between April and June was higher than the one registered during the first quarter of the year, set at 0.4%. With the 0.6% registered at the end of June, Catalonia has achieved 5 consecutive quarters of posting positive figures, leaving the recession more than a year behind. Regarding economic sectors, services have led the economic recovery, posting a 1.8% annual growth at the end of the first half of 2014.

The sale of homes in Catalonia rose 13.1% this April, compared with the same month last year, according to the Spanish Statistics Institute (INE).  April 2014 saw the sale of 3,724 properties in Catalonia, 3,334 of which were free (89.5%) and 390 protected (10.5%).  Of these transactions, 32% corresponded to newly-built flats and 68% were of existing homes.  Across Spain, sales have increased by 5.3% in annual terms, with a total of 24,968 transactions registered. Thus, Catalonia sits comfortably above the Spanish average, but was surpassed by eight other Autonomous Communities, including the Basque Country, Cantabria and the Balearic Islands, where purchases increased by 48.8%, 41 6% and 28.5%, respectively.

Sales of residential real state in Catalonia increased by 42.8% in March compared to the same month in 2013, according to data released on Tuesday by the Spanish Statistics Institute (INE). In the whole of Spain, housing sales grew by 22.8% in the same period, with 27,047 transactions. In Catalonia, 3,944 residential units were sold: 1,267 were newly-built houses (32.12%) while the remaining 2,677 were second-hand (67.88%). 3,567 (90.44%) were open market while the remaining 377 (9.56%) were subsidised housing units. Catalonia is the Autonomous Community with the second highest percentage increase in sales, coming after the Balearic Islands, which registered 71% increase.

The Catalan Minister for Territory and Sustainability, Santi Vila, who is also in charge of housing policies, presented on Tuesday the draft of a new tax bill on empty flats and houses owned by financial institutions in Catalonia. During a press conference, Vila explained that such a tax is looking to be an “incentive” for banks to make available their 15,000 flats spread across 70 municipalities with “proven demand” for housing, mainly around Barcelona, Tarragona, Lleida and Girona, and which have been empty for more than 2 years without a justified cause. The amount of the tax will be based on the total number of square meters owned by the banks and will include significant accumulative bonuses if the institutions decide to rent their properties, notably for social housing. The Catalan Government estimates that banks own around 40,000 empty flats, including in areas with housing demand.

Housing sales in Catalonia have reached 45,064 units in 2013, representing a 4.8% increase on the previous year, according to data published on Wednesday by the Spanish Statistics Institute (INE). Such figures are the highest since 2010, when 55,857 transactions were registered. Besides, in monthly terms, in December 2013, there were 3,014home sales in Catalonia, amounting to a 2.6% increase on the same month last year. At Spanish level, residential property transactions dropped to 311,414 in 2013, meaning a 2.2% decrease. The December figures reveal a similar trend, with the number of sales falling to 22,723 units in the entire country, a 3.6% decrease compared to the same month last year.

The Catalan Government put 4 buildings up for auction this Friday, following a plan to rationalise the spaces it uses, reduce spending and increase revenue in order to reduce public deficit. The headquarters of the Catalan Finance Ministry, located in a 8,000 square metre Art-Nouveau building in Barcelona’s Rambla Catalunya, has been bought by an Italian pharmaceutical company through FINAF 92 for €23.2 million. The other building, with a surface of 7,200 square metres, was used by the Catalan Police and is located in front of Barcelona’s Ciutadella Park. It has been bought by the German hotel company MO Düsseldorf Immermannstrasse GmbH & CO. KG for €14.1 million. On Thursday, the Catalan Government announced a plan to reduce its office space by 45% in the coming year by concentrating services. The plan includes selling the most attractive buildings.

Housing prices increased by 0.8% in Catalonia during the third quarter of 2013, which is the first quarterly increase in the last three years. However, despite the positive figures, in annual terms prices at the end of September were 8.1% lower than those registered 12 months ago, due to the price falls registered in the second half of 2012 and the first 6 months of 2013. Between July and September 2013, prices of newly-built flats and houses in Catalonia rose by 5.7%, while those of second-hand housing were still decreasing (-0.3%). However, overall figures suggest that the real estate market may have reached the bottom and that its recovery might be about to start. In the whole of Spain, housing prices rose by 0.7% in the third quarter of 2013.

The real estate subsidiary of Catalonia’s second largest financial entity, Solvia, increased sales by 56% compared to last year’s same period. The company posted its provisional results for the first half of the year, although it has decided to extend its seasonal sales campaign until the 15^th of August due to the high demand. Banc Sabadell made €1.27 billion from the sale of 7,747 properties. The forecast for the whole year is to sell 16,000 properties. Statistics released by the bank show that 15% of buyers are non-resident foreigners while 33% purchase to invest.

The Catalan Government will continue to occupy the facilities as a tenant, annually paying €16.2 million in rent over the next 20 years. The decision to sell Catalan Government properties had been taken to ease the difficult financial situation and obtain liquidity. The initiative is part of the austerity measures adopted to reduce the public deficit and increase revenue. Taking this last sale into account, the Catalan Government will have sold 17 properties for a total of €266 million since 2012. The Catalan Minister for the Presidency, Francesc Homs, emphasised that the revenue generated by these sales will allow the Government to undertake fewer budget cuts.

The Wealth Transfer Tax, which is levied on sales of second-hand housing units and any other used real estate, will be raised from 8% to 10% as from the 1st of August. The Catalan Government expects to earn an additional €50 million in 2013 and €150 million in 2014. The Catalan Finance Minister, Andreu Mas-Colell, argued that the rise in the tax rate is equivalent to the VAT charged on sales of new housing units and that both taxes should be “parallel”. He also added that other Autonomous Communities had previously raised this tax to similar levels.

In March, 2,750 flats and houses were sold in Catalonia, 13.9% less than a year ago in the same month. 32.5% were newly built homes and 67.5% were second hand ones. The previous worst month of the economic crisis had been December 2011, when 2,778 housing units were sold. However, the results from March represent the lowest level of housing sales since January 2007. The reasons behind this drop are the economic recession and the crisis of the real estate sector. In the whole of Spain, housing sales dropped by 12.6% compared to a year ago, with 22,086 flats and houses sold. However, at a Spanish level, the worst month in the last few years is still April 2012, when 21,551 housing units were sold.

The new tax would not affect individual citizens neither would it be implemented in areas without housing demand. The tax aims to put apartments and houses, owned by banks and real estate companies that remain empty despite being in areas with a demand for housing, back on the market. The expected effect is an increase in the amount of housing on offer in those areas and to make renting cheaper. The Catalan Minister for Public Works, Santi Vila, announced the new tax on Monday morning. A few hours later, the Catalan President confirmed they are considering it, although no final decision has been made. The Left-Wing Catalan Independence Party (ERC) stated that the measure was part of the agreement reached with the Centre-Right Catalan Nationalist Coalition (CiU).

The increase is the highest one registered in Catalonia over the last year. 3,751 home mortgage contracts were signed in January. At the end of 2012, the fiscal benefits for purchasing houses were diminishing and were non-existent by January. Despite this fact, there was a peak in the number of mortgage loans taken out. For the whole of Spain, the number of mortgage loan contracts signed in January reached 25,447, a 44.7% increase in relation to December last year. This is the highest increase since January 2007. Furthermore, the average price of the mortgages signed in January in Catalonia reached €110,418. In year-over-year terms, the number of mortgages signed in Catalonia in January 2013 was 18.58% lower than those signed in January 2012.

The 2,885 housing units sold in Catalonia during December increased by 4% compared to the figures from a year ago. The main reason for this rise is that, in January, the Spanish Government’s tax benefits applied when purchasing a house – approved to reactivate this economic sector after the collapse of the real estate market – will no longer exist. 66% of the houses and apartments sold were second hand, while the other third were newly built. For the whole of Spain, housing sales increased by 2.3% in December. In 2012, house sales dropped by 11.3% over 2012.

The Catalan savings bank, which the Bank of Spain intervened in last September, is selling part of its real estate stock. During the first seven months of 2012, the bank has commercialised 6,700 housing units, 40% more than last year’s same period. Around 90% were sold and the rest were rented. 56% were newly built houses and 44% were second hand properties. Regarding the location, 54% were in Catalonia, 12% in Valencia, 12% in Andalusia and 8% in Madrid.