Mortgage approvals rose 33% in Spain in summer

Mortgage activity throughout the summer has been very brisk in Spain.

Data from Spain’s National Statistics Office (INE) published last week has shown that the number of mortgage approvals granted in the month of July was 32.9% higher than over the same month last year…

The INE data shows that, in total, some 24,863 home mortgages were granted nationwide in that single month, with the average mortgage value also increasing by 3.8% year-over-year to €119,613.

Overall, the amount of capital loaned by Spanish banks in July reached €2.97 billion, which is an increase of 38% on July 2016.

Curiously, when compared to the previous month of June, the number of mortgages granted in July was 15.8% lower – although this is most likely due to July being peak holiday season when many would-be buyers had their mind on the beach, rather than their next investment.

The highest number of home mortgages granted by region was found in the Costa del Sol’s Andalucía, which saw 4,577 mortgages signed off in July, surpassing both Madrid (4,379 mortgages) and Catalonia (4,348 mortgages), respectively.

Andalucía’s popularity is perennially boosted by the likes of Marbella, which is one of the most popular second home investment destinations in Spain and a hot favourite among British, Irish, German and Scandinavian buyers.

In Catalonia, uncertainty over the independence ‘referendum’ does not appear to have scared away investors: real estate consultant Sotheby’s International Realty said that it is hitting record sales in Catalonia this year, with no investors displaying any nervousness about a potential secession.

Data for Barcelona house prices collated by Idealista show that the average home in the city has risen in value by 9.2% in 2017 – another sure sign that the political rumblings are having no ill-effect on investment activity.