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Spanish property volume increases 15% on cash purchase in February 2015

Spanish property volume increases 15% on cash purchase in February 2015

MADRID: The latest figures published by Spain’s central statistics unit show a further consolidation of the property market, with the volume of sales registered in February up by 15.5% on the 1/3 of Spanish properties sold are cash purchases same month last year and a rising trend which has now lasted for twelve months.

One of the main factors behind this resurgence is undoubtedly the increased availability of mortgages, enabling purchasers to climb onto the property ladder by means of bank loans, but the current low prices and the fact that the market appears to have bottomed out are also currently attracting cash-down buyers, according to national newspaper El Mundo.

Complete figures for February are not yet available, but the newspaper reports that between August and January over a third of all purchases were made without any mortgage being involved: while 161,361 properties changed hands only 104,825 mortgages were granted. Many of the cash buyers are believed to be “socimis” (limited companies formed to invest in property), but another category includes individuals who have enough money to invest in real estate and believe that now is the most advantageous time to do so.