Spanish mortgage approvals surge 19.2% in June

June is always a strong month in Spain for property sales, and this year has proven particularly bullish.

Official notary data from Spain for the month of June has shown the sharpest increase in a decade in the number of mortgages granted on residential property.

According to the statistics, the 23,223 mortgages granted in Spain in June this year was 19.2% higher than the same month last year. This figure means that nearly half – 45% – of all properties bought in June were financed this way…

Overall, a total of 51,477 homes were registered as bought in Spain for June – a 17.4% increase on the same month last year, and the second-sharpest monthly increase since 2007. The only month in a decade that topped June’s sales rise was December 2012, when transaction volumes were inflated for one month ahead of new income tax rules that were introduced in January 2013.

June’s excellent sales figures mark yet further confirmation of Spain’s strengthening real estate sector, which is being boosted by sustained foreign as well as domestic demand, loosened and generous lending criteria among Spain’s banks, and steadily increasing prices across almost all regions of the country.

The notary data revealed a 1.4% price increase in June compared to June 2016, with a typical square metre of property now costing €1,358 as a national average. To reflect this stable price increase, the average mortgage capital rose 6% to €129,704, with the data revealing that where a mortgage was the mode of purchase the loan capital amounted to 76% of the total purchase price.

As reported, the new build property market is also beginning to grow significantly, with sales of new homes rising 10.8% in June when compared to the same month last year.