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Property in Spain: A weekly roundup of the latest news and updates

Property in Spain: A weekly roundup of the latest news and updates
The Balearics are the most popular region with foreign buyers. Image: Frank Meitzke / Pixabay
From home-sellers lowering property prices in Madrid to foreclosures being at their highest level in four years, and the Balearic Islands proving to be the most popular place in Spain for foreign buyers, here is the latest round-up of property news.

The Balearic Islands are the most popular place for foreigners to buy a property in Spain

The Balearic Islands have proven to be the most popular place for foreign buyers to purchase property, so far this year, according to data from the College of Registrars. 

British and Germans made up most of the foreign buyers on these islands, which saw an increase in foreign buyers of 29.8 percent.

This was followed by the Canary Islands, which saw a 23.9 percent increase in foreign buyers. The Valencian region came in third with a 19.5 percent increase in foreign buyers.

Home sellers lower prices in Madrid for the first time in 2021

August saw the first month-on-month decline of house prices in Madrid so far in 2021, according to the records of the largest national real estate website, Idealista.

Housing prices fell by 0.4 percent in the areas surrounding the capital, which historically record some of the highest prices. 

Throughout the region house prices fell by 0.1 percent, the highest monthly drop seen since the home confinement period in spring last year. 

Real estate giants Fotocasa explained that the demand for housing in the capital has decreased by 14.8 percent with respect to the previous year, so this could have something to do with the recent price drop. 

Property prices dropped in Madrid during August. Photo: c1n3ma / Pixabay

House prices in Spain return to pre-pandemic levels

House prices in Spain rose by 3.3 percent in the second quarter of 2021, the biggest rise since the end of 2019, according to the survey of the Housing Price Index (IPV) carried out by the Spanish National Institute of Statistics (INE), published on Wednesday. 

“The annual variation of the Housing Price Index in the second quarter of 2021 increased by 2.4 points since last quarter, meaning a rise of 3.3 percent, the highest level since the fourth quarter of 2019”, the INE said in its report.  

This quarterly increase confirms the recovery of house prices to pre-pandemic levels. 

READ ALSO: House prices in Spain return to pre-pandemic levels

Home foreclosures soar to their highest level in four years

In the second quarter of the year, from April to June 2021, 3,243 foreclosures were registered in Spain, the highest figure since the first quarter of 2017. 

This represents 253.2 percent more than in the same period of the previous year, according to the data published on Tuesday by the National Institute of Statistics (INE).  

The only region in Spain which did not register more foreclosures was Aragón.

The INE reported that of these foreclosures, 3,207 were habitual residences and the rest were non-habitual residences.

Did you know? 

The average price of a home in the Spanish capital of Madrid stands at €356,432, according to Fotocasa. 

Meanwhile, the average cost of a house in the rest of the municipalities in the region of Madrid stands €235,886. 

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If you want to read more about the latest property news, you can read last week’s property newsletter here


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