At Welex, we believe that it is important to keep our clients informed about the Spanish economy, particularly the gross domestic product (GDP) and mortgage interest rates.
This information was published by the National Institute of Statistics, an autonomous body of an administrative nature attached to the Ministry of Economy, Industry and Competitiveness.
The GDP in Spain
The annual growth rate of Spain’s GDP stands at 3.1% in the fourth quarter. The resulting change in GDP in terms of volume for 2017 is 3.1%. Spain’s GDP registered a variation of 0.7% in the fourth quarter of 2017 compared to the previous quarter, according to the quarterly GDP advanced estimate. This rate is 10% lower than that registered in the previous quarter.
Mortgages in Spain
In November 2107, the number of mortgages on homes registered in property registers in Spain was 24,882. This is 3.7% less than the number of mortgages in Spain in November 2016. The average value of these mortgages increased 10.7% over 2016 to €122,703.
The average value of Spanish mortgages registered in property registers in November 2017 (from public deeds made previously) was €145,769. This is 15.1% higher than the value of mortgages in the same month in 2016.
Interest rates on mortgages in Spain
The average interest rate of the mortgages established on properties in Spain in November 2017 was 2.77% (8% lower than in November 2016), and the average term of these mortgages was 22 years. Of the mortgages, 65.9% were at a variable interest rate and 34.1% at a fixed rate.
The average interest rate for variable-rate mortgages started at 2.44% (17.1% lower than in November 2016). Fixed-rate mortgages had an average interest rate of 3.63% (12.7% higher than in November 2016).
Regarding mortgages on homes, the average interest rate was 2.71% (14.3% lower than in November 2016), and the average term was 24 years. Of these mortgages, 63.5% were at a variable interest rate and 36.5% at a fixed rate.
Fixed-rate mortgages have experienced a 6.5% decrease in their annual rate. For variable-rate mortgages for homes, the average interest rate at the beginning of the mortgage was 2.54% (a decrease of 19.4%). Fixed-rate mortgages for homes had an average interest rate of 3.1% (a decrease of 3.2%).
Do you want advice about purchasing a property in Spain? Do you need legal or tax advice about obtaining a mortgage in Spain? Do not hesitate to contact Welex Law Firm in Marbella. Our lawyers and economists provide integral services and advice for our clients.