Tecnotramit reacts to numbers provided by the Spanish National Statistics Institute (Instituto Nacional de Estadística, INE) regarding foreclosures and the average property price recorded during this year’s third term. This firsthand information is in our possession since we are one of the main companies in Spain and Portugal to service the most important financial entities and property agencies.
In this sense, a 16.5% year-on-year decrease on foreclosures on individuals’ properties is positive news that aligns with previous statistics and confirms a smaller property burden inherited from the 2004-2008 ‘bubble’. Meanwhile, the amount of foreclosures started on legal persons’ property declined a significant 43.9% yearly, a macroeconomic KPI that encourages optimism and suggests the financial health and property assets of Spanish companies are on the right track.
Financial institutions have done their job very well when it comes to property, since they learnt from their mistakes and have reduced, year after year and in a controlled manner, excess stock stemming from a period in time marked by a lack of rigour and by incorrect decisions. By no coincidence is the Spanish banking system offering record results for its profits, rising stock exchange values, and a sustainable and healthy financial situation that dismisses scenarios similar to those in 2008, in spite of the turbulent context in and out of Spanish borders. However, the risk of increasing loan defaults is in the air.
As for price evolution, which experienced a 4.5% year-on-year increase between July and September, we notify macro-statistical data are inspiring, taking into account Spain’s economic and political contexts. The property purchase market has been highly affected by European Central Bank (ECB) measures to tackle inflation, as well as the Housing Law coming into force, meaning price stability will allow a market that needed cooling down to deflate and recover buyers’ interest in the short-term.