Category Archives: Lawyer services

Property purchases in Spain showed some glimmer of light for January 2013. After the end of 2012 when for the 5th year running overall sales fell considerably, January by contrast gave some rare respite to negative news.

After stripping out other properties the number of urban house sales in Spain for January 2013 increased by 18.9% from January the previous year. Sales of Rustica properties dropped by 3% but overall numbers of sales for dwellings increased by 9% year on year and was some 59.2% more than the month of December 2012.

The statistical institute in Spain today released the full year figures for house sales and property transfers in 2012.

Total annual Spanish property transfers dropped from 2.228 million in 2008 to 1.598 million in 2012; of these residential dwellings totaled 552.1 in 2008, in comparison to 319.1 in 2012; total property transfers including sales, donations, swaps and inheritance for 2012 was 698.226 a decrease of 3% from 2011.

TINSA released its official house price index for Spain today.

January 2013 showed the biggest single January year on year drop in average price per meter square since the crisis began. Whilst there are variations across Spain in the coastal areas prices per square meter dropped by 14.9% in January 2013 against Jan 2012 prices. This excludes the islands who have held up much better than mainland Spains coastal areas.

The definition of a self fulfilling prophecy is

“A prediction that directly or indirectly causes itself to become true”.

Yet again Spain is hitting the headlines:
“Red Cross starts its first campaign in history to feed the starving in Spain”

“S&P downgrade Spain to just above Junk and put on negative watch”

“Moody’s anticipated to downgrade Spain to Junk Bond status”.

Many buyers are asking this question. For many years it has been normal practice when buying in Spain for a buyer to be requested to pay over a sum of money to remove the property from marketing activity until such a time as a purchase contract can be signed. These sums range between 3k to 6k.

Back when this general practice started it was true that there were more buyers than property and to not put down a reservation fee would certainly risk the property being sold to another individual as everyone stampeded to buying their dream home or investment in Spain.