Property auctions in Asturias: discounted assets in Oviedo and Gijón

Asturias has one of the most interesting court auction markets in northern Spain for the investor looking for assets at a real discount. With a property market of moderate prices (€1,200-1,800/m² in Oviedo and Gijón in standard neighbourhoods) and an economy in transition from mining and steel towards services and rural tourism, Asturian auctions produce assets with starting prices between €50,000 and €140,000 and significantly less competition from bidders than in Bilbao, Zaragoza or the big Andalusian capitals.

The two main markets in Asturias

Oviedo: the administrative capital

Oviedo has 220,000 inhabitants and is the administrative capital of Asturias (seat of the Principality's government, the regional high court and the courts). It also has the University of Oviedo, with 25,000 students. Its prices were analysed in detail in the previous article in this series. The auction market in Oviedo produces assets mainly in the working-class neighbourhoods on the outskirts (Ventanielles, Contrueces, La Corredoria), with starting prices between €60,000 and €130,000 and discounts of 15-25% on market value.

Gijón: the industrial port

Gijón has 275,000 inhabitants and is the largest city in Asturias, although it isn't the capital. Its economy combines the port (the busiest on the Cantabrian coast, along with Bilbao's), the metalworking and chemical industry of the Polígono de Veriña industrial estate (ArcelorMittal, Química del Nalón) and an active beach tourism sector (the Playa de San Lorenzo is one of the largest urban beaches in Spain). Its prices are slightly lower than Oviedo's: €1,100-1,600/m² in standard neighbourhoods.

The neighbourhoods of Gijón with the most auctions

• El Natahoyo and Tremañes: Working-class neighbourhoods in the west of Gijón, close to the Veriña industrial estate. A high concentration of industrial workers from ArcelorMittal and the chemical companies. Auction starting prices between €45,000 and €90,000. Post-award yields of 8.5% to 11.5%.
• La Calzada and Jove: Working-class neighbourhoods in the north of Gijón. Starting prices between €50,000 and €95,000. Yields of 8% to 11%.
• El Llano: A working-class neighbourhood in the south of Gijón, densely populated and with active demand. Starting prices between €60,000 and €110,000. Yields of 7.5% to 10%.

The auction process in Asturias: the same BOE procedure

The auction procedure in Asturias follows exactly the same legal framework as in the rest of Spain (the Ley de Enjuiciamiento Civil, the Spanish Civil Procedure Act, and the procedure of the BOE Portal de Subastas, the auction portal of Spain's Official State Gazette). The courts of first instance with jurisdiction over mortgage enforcement in Asturias are those of the judicial district where the property is located: Oviedo, Gijón, Avilés, Mieres and the province's other judicial districts. The registration process and the prior deposit (20% of the auction value, minimum 1,000 euros) are identical to those in any other province.

The advantage of low competition: real discounts in Asturias

The pool of investors specialising in auctions in Asturias is shallower than in Bilbao, Zaragoza, Madrid or the capitals of the Mediterranean arc. That means assets without major peculiarities (complex charges, extreme deterioration) are awarded at discounts of 20-30% on market value because there are fewer bidders competing. For investors from outside Asturias who study the market remotely (the BOE portal doesn't require you to be physically present until the award), that lower competition is a real competitive advantage.

ITP in Asturias: 8% up to €300,000

Asturias has an ITP (Impuesto sobre Transmisiones Patrimoniales, the property transfer tax) of 8% for properties up to €300,000 (9% up to €500,000 and 10% above that), the same 8% as Galicia and below Cantabria (9%) and Catalonia (10%). For the investor, that 8% on the award price (not on the appraised market value) is a cost that has to be built into the calculation. If the asset is awarded at 70% of market value and the ITP is 8% of the award price, the total cost (award + ITP) is 75.6% of market value — still a discount of 24.4 points on the starting price.

Related resources: For the analysis of the direct-purchase market in Oviedo (the complement to the auction channel in Asturias), the article on cheap property in Oviedo has the full analysis. For the inventory of assets available in Asturias, see opportunities in Asturias. For the legal process of auctions applicable to Asturias (identical to that in the rest of Spain), the article on court auctions has the complete guide to the procedure.