The property market hits record highs in prices and foreign purchases (16.05%), while sales and mortgages fall for the third straight quarter, showing a slowdown.
The presence of foreign buyers in the property market keeps growing. In the third quarter of the year, their transactions accounted for 16,05% of all home sales, the highest percentage in the historical series. In absolute terms, more than 26.300 transactions were completed, according to the latest data published by the College of Registrars.
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More than half of these purchases, specifically 54,7%, were made by citizens of the European Union, while a further 17,8% corresponded to buyers from the rest of Europe.
By nationality of buyers, British nationals topped the ranking, with 7,5% of all purchases by foreigners. They were followed by Moroccan citizens, with 6,4%, and Dutch buyers, with 5,8%.
The weight of international demand was particularly significant in island and Mediterranean markets. Balearic Islands topped the table, with 37,2% of sales in foreign hands, followed by the Valencian Community, with 30,4%. In the other autonomous communities, this percentage was below 30%.
House prices hit new highs again
The residential market continues to show strong pressure on prices. The College of Registrars Repeat Sales House Price Index recorded a year-on-year increase of 15,8% in the third quarter, while compared with the previous three months it rose by 5,2%. Both moves took the indicator to a new record high.
The average house price reached 2.512 euros per square metre. By type, existing homes stood at 2.462 euros/m2 after a quarterly increase of 0,6%. New homes reached 2.701 euros/m2, with a rise of 2,5%.
Despite these figures, the trend in average prices points to a moderation in the pace of growth. According to this methodology, the increase was 1% on a quarterly basis and 9,3% compared with the same period a year earlier.
By autonomous community, Madrid recorded the highest average price, at 4.565 euros/m2, followed closely by the Balearic Islands, at 4.502 euros/m2. Next came the Basque Country (3.693 euros/m2), Catalonia (2.989 euros/m2) and the Canary Islands (2.850 euros/m2).
The ranking by provincial capitals once again puts San Sebastián in first place, with 6.662 euros per square metre. Madrid is in second place, with 5.597 euros/m2, followed by Barcelona (5.124), Palma (4.408) and Bilbao (3.877).
Home sales post three quarters of declines
Against rising prices, activity in the residential market is starting to show signs of cooling. In the third quarter, home sales fell 5,9% year on year, according to data from the registrars.
The comparison with the previous quarter is also negative. Transactions dropped by 2,3%, making it three consecutive quarters of declines. Between July and September 164.148 sales were recorded, the lowest volume in the past nine quarters.
By segment, new-build homes saw 34.611 transactions, 0,9% fewer than in the previous quarter. Existing homes accounted for most of the activity, with 129.537 transactions, but they also posted a drop of 2,6%. Quarterly declines were seen in ten autonomous communities and 27 provinces.
Mortgages also fall in the third quarter
Mortgage financing followed a similar pattern. Between July and September, 124.145 mortgages on homes were registered, a quarterly reduction of 3,9%. This figure is equivalent to 75,6% of all home sales recorded in the period.
However, the balance over the past twelve months remains positive. In that interval, 519.388 mortgages on homes were taken out, 6% more than in the previous twelve months.
Andalusia recorded the highest number of mortgage transactions in the third quarter, with 23.635, followed by Catalonia, with 23.268. The Community of Madrid registered 18.240 transactions and the Valencian Community, 15.692.
As for the mortgage amount per square metre, Madrid was once again in first place, with 3.158 euros/m2. The Balearic Islands were second, with 2.987 euros/m2, followed by the Basque Country (2.392) and Catalonia (2.248).
The data depict a property market marked by an apparent contradiction: while prices continue to break records and foreign demand becomes increasingly prominent, the number of sales has been falling for several quarters.
