NEWS

NEWS

 

Home sales increased 8.8% in July, adding up four months upward

Home sales reached 26,076 operations during June, representing a rise of 8.8% over the same month of 2013, and this economic indicator chained four consecutive months upward, according to data released today by the National Institute of Statistics (INE).

Until March, operations had fallen continuously for ten months, but since that month they have not stopped rising, according to statistics produced by INE with the registered broadcast on property records and therefore relate to intercompany transactions months earlier. However, in the year to date home sales have fallen 5.4%, and 7.3% if compared to May 2013, the report said.

Of the total registered households in June, 90.5% were free (9.9% higher than a year earlier) and 9.5% protected (1.4% less). Moreover, 37.7% of the buildings were new and 62.3% second hand, which means that in June the sale of new houses fell by 3% year on year, while that of second-hand houses rose 17.4%.

As for the evolution of autonomous regions, home sales rose in June in ten and fell in the rest. At the head of the hikes stood Madrid (with an annual growth of 30.4%), followed by Extremadura (25.7%), and Navarra (19.3%). Castilla-La Mancha (21.6%), La Rioja (12.8%) and Castilla y León (10.3%) led the declines.

During the sixth month of the year, the total number of plots borne on the Property Registry from deeds done previously was 125,817, which means a 8.8% less if compared to June 2013, and 8.3% compared to May 2013.

Property sales totaled 56,250, with an annual rise of 5.9%, while donations were down 14.5% (3,424), swaps grew 6% (534), and inheritance fell 1.2% (29,264). The land consolidation, horizontal divisions, joint ventures or mixtures of several titles transmission, transmissions Untitled acquisition, payment in kind, foreclosures, and judicial awards fell 28.2%, to 36,345 operations.

Source: El Confidencial

The brick gradually recovers lost luster

The brick starts to regain lost luster in Madrid after the thunderous burst of the housing bubble. In the first eight months of the current year, the capital’s City granted licenses to build 2,741 new homes, 35% higher than the same period in 2013.

Compared to the bulky figures of the decade of boom, the numeral can not take another appellation than modest. In 2007, for example, the building of 43,395 homes were allowed throughout the region, of which a large proportion was in the capital.

Nevertheless, if one considers that in the entire municipality there are still around 200,000 empty flats, and also that almost 50,000 people were removed from the population census, the fact that cranes keep being placed is encouraging news for a sector decimated by the collapse of the housing development, both for the real estate sector, and for the local government in charge of tax — linked to economic activity — collection.

This is the way Madrid City Council spokesman Enrique Nunez takes it, as he described the details of licenses housing as “positive and optimistic”. These numbers, he explained, “confirms a trend that began in 2011” which was hampered by the Supreme Court judgment of September of the following year, which declared illegal 22 developments until the local government managed to correct the mistakes in the planning, ten months afterwards.

4,000 MORE BESTOWALS BY YEAR-END

According to the calculations made in the Palacio de Cibeles, the pace of permit applications for the construction of new properties between January and August, could lead to a total of 4,300 bestowals by the end of the year. “In economic terms it would involve an investment of 258 million euros for the city of Madrid, and the creation of 10,750 jobs,” said the Consistory’s number two.

According to a study on the residential market in Spain, which has been published this week by the Department of Real Estate of Deloitte, the region tops the list of those provinces which will sooner recover the usual pace of housing construction, a fact that, according to Nunez, “reinforces the effort of the Municipality of the capital to implement policies aimed at reactivating the economic activity.”

“This same report indicates that Madrid is not among the cities with the highest rate of effort, ie, the percentage of household income devoted to mortgage payment. All these indicators show a sharp upturn in the real estate sector in the city, which is slowly moving away from the worst figures obtained during the crisis”, as remarked by Ana Botella’s — the current mayor — team.

What has not recovered, so far, is the main role of free housing: Traditionally, three of them per each public housing flat were built, but now those percentages have practically reversed in Madrid. According to municipal data collected so far this year, only 46 out of 54 applications for licenses for the construction of houses with some form of public subsidy ask for types that are accessible to all kinds of buyers.

Another recent report, prepared by the Institute of Economic Studies, linked to the Association of Real Estate in Madrid (Asprima), predicts that there will still be drops in house prices of between 5% and 10% this year and next year, but in 2016 they will again take the path of ascent.

The square meter of private housing came to be paid, on average, at 4,275 euros in Madrid city in 2007. According to the latest statistics from the Ministry of Public Works, for the first quarter of 2014, the cost had been reduced by almost half (2,375 euros).

Source: El Mundo

The City Council takes to contest twenty nine plots in El Canaveral to build subsidized housing

Madrid City Council will bring competition selling up to 29 parcels in El Canaveral, Vicálvaro district, to build social housing and provide a solution to the cooperatives from the southeast area, as reported by the Madrid City Council in a statement.

More than 2,100 families from cooperatives of housing developments in the southeast of the capital “may soon see their expectations fulfilled to access subsidized housing.” It will be possible through a “pioneering effort” of the City of Madrid, a public tender for the sale of city-owned parcels intended for social housing, so that they may be paid with land located in other areas.

Cooperatives that own land developments in the southeast of the capital’s areas, such as Los Ahijones, Valdecarros, or Los Berrocales, which development was planned for the 2001-2005 quadrennium, and that were affected by the economic crisis, may submit tenders to the competition.

The urbanized city-owned parcels were valued at 90,397,333 euros and have a floor area of 225,700 square meters. The City will receive in exchange raw land located in the Southeast of these developments, currently owned by cooperatives.

The tender documents which rule the sale of municipal plots provides that the sale was made through an open, aimed at cooperatives holding soil in those developments, and that the price of municipal plots alienated land may be paid with gross estate of the above mentioned cooperatives, which, as of April 1, 2011, had contributed to the respective ground Compensation Boards. They did it with a cap of 83 percent of the value of the sold plots. The rest of the price is paid in cash.

This contest, with the corresponding economic feasibility study that ensures protection of the interests of the locals, is in line with the commitment that the City acquired with those cooperatives affected by the time lag in the implementation of the new developments.

The announcement of the contest has been published today in the Official Bulletin of the Community of Madrid. This operation will also have an added benefit for the rest of the families involved in the housing Canaveral implement the development area and the creation of sustainable population centers from the perspective of service delivery.

Source: Europa Press