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Full Terms and Conditions apply to all Subscriptions. Learn more and compare subscriptions. Or, if you are already a subscriber Sign in. Close drawer menu Financial Times International Edition. Search the FT Search. World Show more World. There were also declines in Madrid In contrast, Ceuta registered the biggest sales surge of a whopping The modest decline might be due to the fact that home sales reached almost , units in , up Home sales to foreigners were 4.
Foreign investors started to return to the Spanish property market in In , foreign homebuyers bought over 65, homes in Spain, up 7. Other buyers include Swedes, Belgians, Italians and Chinese. The Golden Visa scheme, fully applicable since 30th September , has increased interest not only from the Middle East but also Asia and Russia. In the first half of , there were about approved Golden visa applicants , up An overwhelming majority of applicants choose real estate acquisition as a qualifying investment.
The Balearic Islands are especially attractive to foreigners with about one third of total demand coming from foreigners, mainly due to its white-sand beaches and sunny Mediterranean landscape. Of the autonomous regions and cities, Galicia registered the biggest increase in foreclosures of In contrast, foreclosures continue to decline in La Rioja Foreclosures were almost steady in Castilla y Leon , Balears , and Cantabria. Residential building permits averaged , annually from to With home sales of about , units per year from to and completions of just 51, annually, it is believed that the housing glut has been finally corrected.
In fact, some allege there is now a growing housing shortage. However construction activity is slowing again, after reaching a seven-year high in In November , the average mortgage rate in Spain was 1. However, there has been a continuous decline in the share of adjustable rate mortgages in recent years. Despite ultra-low interest rates, the Spanish mortgage market continues to shrink. It contracted to about New home mortgages increased by a minuscule 0.
Average apartment rents in Spain rose by 2. By autonomous region, Cantabria recorded the highest rent increase of In contrast, La Rioja 1. In March , a new government decree regulating rental dwellings in Spain went into effect, in an effort to limit rent increases and expand tenant protection and rights.
Among the major changes, the measure caps annual rent hikes at the rate of inflation within the contract period; extends the duration of the rental contract from 3 years to 5 years or 7 years if the landlord is a business entity ; and introduces a state benchmark index for rental prices that will be used to gauge the current state of the market.
The new law will be applied to new lease agreements signed on March 6, onwards. In January 23, , Spain became the second euro zone country to exit its international bailout program, after Ireland. The Spanish economy has consistently outperformed much of Europe since.
However, it has been a long, hard slog. The economy shrank by 1. In , the economy grew by a meager 0. The European Commission is even more pessimistic, projecting the Spanish economy to grow by just 1. Spanish unemployment fell to The total number of unemployed is 3.
Inflation is expected to remain low at 1. Spain narrowed its budget deficit to around 2. The deficit is expected to fall further to 2. I know it might be quite early to tell but do you have any data about how the Spanish housing market is standing after Q1 and the COVID lockdown effects?
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