The property sales statistics released today by the National Statistics Institute (INE) showed the highest increase of its history, whose first comparable data dates back to 2008 and has always reflected declines in the property market until this year. In total, 41,033 home sales were recorded in February, representing an increase of 18.7% over the same month in 2009 and consolidating the rebound experienced in January.
It is encouraging that this is the second consecutive monthly increase in property purchases and sales, rising 2.1% (year on year) in January, after two years of continuous decline. Last year ended with an overall fall in the sale of property of 24.9% over 2008, with a total of 414,811 transactions.
The month on month (January to February) figures for property sales also increased, by 7.1%, and the first two months of the year demonstrate an accumulated rise of 10.1% over the same period in 2009. The 18.7% year on year growth is represented by a 23.7% rise in resale property transactions (19,665), and an increase of 14.4% in new build property sales in Spain (21,368).
Of the 41,033 property sales transactions recorded in February, 87.1% were on general housing and 12.9% were social housing. This reflects a 16% rise in general housing sales compared to February 2009 and considerable 40.7% increase in social housing sales.
As is typical, there are substantial differences in property sales in different areas of Spain, with 60.6% of all home sales made in the second month of the year being recorded in only Andalusia, Catalonia, Valencia and Madrid.
In light of the positive results, the Minister of Housing, Beatriz Corredor, said today that 2010 “is one of the best years” to buy a house in Spain, but rejected calls to apply the super-reduced VAT (4%) rate to the entire Spanish housing market. The minister reaffirmed that only the VAT rate on social housing or from public promoters (municipalities and communities) will remain at the super-reduced rate (4%), while for the rest of the market the tax rate applicable is the reduced rate, which will soon increase from 7 to 8%.
Source: Kyero.com