As the property market in Spain gradually emerges from its seven-year slump one of the main motors driving increased sales figures is of course the availability of mortgages from Banks, and the data published on Tuesday by the country’s central statistics unit confirm that the upward trend of recent months was maintained last November.
During November 2014 exactly 15,900 mortgage loans are reported to have been granted by Spain’s banks on residential property, an increase of 14.2% on the same month in 2014. In the Comunitat Valenciana, meanwhile, the 1,743 operations carried out represent an even more impressive increase of 16.4%, and at the same time the average loan capital rose slightly to 89,758 euros.
Surprisingly, though, the figures reported for the province of Alicante and the Costa Blanca actually fell slightly. The 634 loans reported in the province were 13 fewer than in November 2013, perhaps indicating that although there is more sales activity in the province this is due largely to interest from cash buyers. The increased number of mortgages in the region as a whole is due entirely to the 905 loans registered in the province of Valencia (33% more than in November 2013).
Apart from the banks being more willing to loan money for property purchases the climate is also friendlier for lending due to the extremely low level of the Euribor, on which most Spanish mortgage interest rates are calculated. Over the last year the average rate being imposed on mortgage loans has dropped from 4.29% to just 3.49%, and in this climate the banks are even competing with each other to attract mortgage business, a situation which not so long ago would have been almost unthinkable.
It should be noted that the number of mortgages being taken out on property is minimal compared to the levels reached during the boom years of the last decade. In 2006 an average of almost 16,000 mortgages a month were constituted in the Comunitat Valenciana alone.
However, in general terms the increase in mortgage activity throughout Spain is undeniable, and adds further weight to the notion that moderate prosperity is on the cards for the property sector this year
All Text and Images are Subject to Copyright