Spain's Property Market shows double digit rise in October

There were 22,489 house sales in October, 14% up on the same time last year but 1% down compared to the previous month, according to the latest figures from the National Institute of Statistics.

So yet more evidence that the Spanish property market has found a floor, and is starting to stage a recovery, as illustrated by the chart below (2012 in red).

On an annualised basis the Spanish property market has now grown for three months in a row, having fallen continuously since March 2010 before that.

This comes after data from the Department of Housing showing that the Spanish property market was almost steady in Q3. So data from two different sources is telling a similar story.

The real test will come in the first months of 2013 with tax incentives being phased out and IVA (VAT) on new homes possibly to be increased to 10%. The Spanish Developers Association forecasts that the year will end with 325,000 home sales, down 7pc on last year.

With thanks to Spanish Property Insight.