Overseas property news - Spain's shrinking stock of unsold homes

Spain's shrinking stock of unsold homes

Photo: C. Frayle

Spain's stock of unsold homes is continuing to shrink, according to new figures, as buyers snap up properties at low prices and favourable exchange rates.

All areas of the country apart from two have seen inventory decrease, the official data from the Ministry of Development reveals: Ceuta and Melilla saw supply surge 18.1 per cent as of December 2014.

Despite the annual increases, though, the provinces only make up a minority of Spain's unsold stock, accounting for a total of 744 homes. Other areas that have seen stock levels climb since 2013 include Vizcaya and Alava, also accounting for only 3,227 and 2,309 homes respectively.

Indeed, Valencia, Andalucia and Catalonia are responsible for the biggest volume of unsold inventory, together making up almost half (49.64 per cent) of the total.

Valencia, though, is also one of the most popular destinations for foreign buyers: the region recorded the highest number of sales per 100,000 inhabitantss in June 2015, according to figures from the National Statistics Institute. In real terms, only Andalucia generated more sales, with the two accounting for 6,129 and 4,659 transactions respectively.

The report shows that Spanish property sales jumped 17 per cent in June 2015 year-on-year to a total of 30,578. The leap marks a continuing trend in international demand, with sales now recording 10 months of annual growth in a row. Spain is now the most popular country on TheMoveChannel.com, with its share of enquiries on the portal up from 6.68 per cent to 9.36 per cent in July 2015 from June. In real terms, enquiries for Spanish property jumped 51 per cent.

Sales of new homes continue to stall, though, falling 30.6 per cent year-on-year, as the second home market saw sales rise 44.5 per cent.

Nonetheless, supply is slowly being consumed: the Ministry estimates that the country's total number of unsold homes is now 535,734, down 5 per cent since 2013. According to Idealista.com, meanwhile, stock has reduced by 17.5 per cent since 2009.

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