A recent report reveals that the Spanish property market’s recent boom may be drawing to an end as sales figures in the country have fallen considerably for a second consecutive month.
The latest Central Statistics Unit release shows that the number of property transactions taking place across Spain in September 2019 was 12 per cent lower than it had been in the same month a year earlier. This follows on from a 21 per cent decrease in transactions in August 2019 compared to August 2018.
In total, 37,995 Spanish property transactions took place last month. Sales figures fell in 15 of Spain’s 17 regions, with only Aragon (3.7 per cent) and Murcia (3.1 per cent) recording increases.
The sharpest year-on-year decreases were seen in the Canaries, where property transactions were down 20 per cent, and the northern regions of Asturias, La Rioja, Navarra and Castilla Y Leon.
Experts note there are a number of possible reasons behind the fall in Spanish property transactions, with some predicting that the fall may be a blip rather than the start of another market crash.
The main reason is likely to be down to recent political uncertainty in Spain; uncertainty that is set to continue following last week’s General Election which returned a hung parliament.
Brexit could also be having an impact. Brits have traditionally been the largest source of overseas property buyers in Spain, but with uncertainty regarding the UK’s future relationship with the EU still rife, this could be affecting sales figures.
There has also been a slowdown in Spain’s economic growth in recent months – possibly linked to the political situation – and there are fears that unemployment figures could be set to rise again, having fallen considerably in the past few years.
However, despite the slowing sales, activity in the Spanish property market is still 71.9 per cent higher than it had been at the market’s lowest point back in February 2014.
Article published 18th November 2019