Mortgages and Spanish defense
In any self-respecting football match, the forwards play a fundamental role. But the same also applies to the defenders, who do not allow the other team to throw the ball into the goal, countering the offensive. Well, as in the football world, even in real estate we often talk about attack and defense. In particular, today we will try to understand how and if the defense of a country is sufficient against the pandemic attack. We are talking about one of the countries most affected by the health crisis in Europe: Spain. An enviable nation for its monuments and food and wine, and above all for the warmth of the population, it was the territory most hindered by the Covid emergency.
In order to obtain answers to the various questions we are asking ourselves, we have decided to analyze the first half of Spain, both in the micro sector of the real estate market, and at an overall economic level. We will focus in particular on the request for mortgages to be able to support a real estate expense. So, if you are ready, we can inaugurate our news today!
As for the average amount, according to statistical surveys, in the first half of the year the value was around 120 thousand euros. With a 1% change from the previous year. According to what was recorded, 2007 was the turning point. Year in which the average mortgage recorded reached an all-time high. For a total of 185,643 euros. From that moment on, a real collapse was monitored, which brought this value to reach 80 thousand. For a total value of -56 percentage points.
On the basis of monthly mortgages, on the other hand, the first half of Spain shows an average value of 460 euros. According to expert judgment, this value should be considered by virtue of the numerous risk indicators that have emerged in this period and which currently remain stable. In addition, banks continue undaunted to adopt a conservative credit policy. Which means that fewer and fewer people benefit from mortgages and that they have real guarantees. To speak in percentage terms, mortgages have been granted to individuals with a fixed-term employment contract, which however represent a very thin slice of the whole. The total is in fact about 7% of the applicants.
A really too low level, which makes us understand how critical and tiring it is to be able to reintegrate into Spanish real estate if you do not have a solid economic foundation. It is therefore not surprising that the Spanish property has suffered and continues to suffer from the Covid situation. We also consider that Spain has currently registered a new increase in infections, which leads to a sense of disorientation both for investors but also for the same experts in the sector who are unable to concretely realize long-term forecasts.
It is therefore evident that, after some time, the situation is not the best. But, of course, we hope that Spain with its energy can recover!
In order to obtain answers to the various questions we are asking ourselves, we have decided to analyze the first half of Spain, both in the micro sector of the real estate market, and at an overall economic level. We will focus in particular on the request for mortgages to be able to support a real estate expense. So, if you are ready, we can inaugurate our news today!
As for the average amount, according to statistical surveys, in the first half of the year the value was around 120 thousand euros. With a 1% change from the previous year. According to what was recorded, 2007 was the turning point. Year in which the average mortgage recorded reached an all-time high. For a total of 185,643 euros. From that moment on, a real collapse was monitored, which brought this value to reach 80 thousand. For a total value of -56 percentage points.
On the basis of monthly mortgages, on the other hand, the first half of Spain shows an average value of 460 euros. According to expert judgment, this value should be considered by virtue of the numerous risk indicators that have emerged in this period and which currently remain stable. In addition, banks continue undaunted to adopt a conservative credit policy. Which means that fewer and fewer people benefit from mortgages and that they have real guarantees. To speak in percentage terms, mortgages have been granted to individuals with a fixed-term employment contract, which however represent a very thin slice of the whole. The total is in fact about 7% of the applicants.
A really too low level, which makes us understand how critical and tiring it is to be able to reintegrate into Spanish real estate if you do not have a solid economic foundation. It is therefore not surprising that the Spanish property has suffered and continues to suffer from the Covid situation. We also consider that Spain has currently registered a new increase in infections, which leads to a sense of disorientation both for investors but also for the same experts in the sector who are unable to concretely realize long-term forecasts.
It is therefore evident that, after some time, the situation is not the best. But, of course, we hope that Spain with its energy can recover!
