Figures for mortgage approvals for residential properties in Spain during the month of June were published last Friday by the National Institute of Statistics, with the number of mortgages granted in Andalucía predictably increasing (by 2.6% compared to June 2017)…
To be precise, 5,765 mortgage agreements were signed in the sixth month of this year, totalling 586.8 million euros in loaned credit, which in itself is more than 5% higher than the same time in 2017.
If you’re wondering why this was predictable, you only need to look at the growth in interannual residential property transactions in recent months to see that they, too, are on the increase and, as they say, there’s no smoke without fire.
In April and June this year, Andalucía was the most attractive Spanish destination for homebuyers – both Spaniards and foreigners alike – and so it follows that mortgages would increase in line with completed real estate transactions; despite the fact that a fair proportion of foreign buyers moving to Spain sell their asset back home to buy outright on the beautiful shores of the Costa del Sol.
On a national level, the year-on-year growth for mortgage approvals was 3.9% in June, with the average loan amount being calculated as 123,896 euros. To put this number into context, it is actually the highest median loan figure the real estate market has recorded since way back in December 2008.
Evidently, this is yet more good news for the Spanish housing market. Specifically, Andalucía and the Costa del Sol are seeing a return to pre-crisis levels in terms of increasing property prices, renewed investment in residential real estate – evidenced by an ascending number of overall transactions – and, consequently, more mortgage approvals.
Remember, if you’ve got any questions about mortgages – or indeed any other financial matter – don’t hesitate to contact our friendly VIVA Team or check out our website www.yourviva.com!