Spanish Property Records Biggest Price Fall Since Records Began

News Date: jueves, 09 de julio de 2009

Property News in Spain
Spanish Property News

The official property price index, published by the National Institute of Statistics or the INE, has revealed that Spanish property prices have fallen 7.6% in Q1 of this year, in comparison to the same period last year, the biggest fall since records began in 2007.

If we break these figures down into property types, resale properties dropped by some 12.5% whilst new builds dropped by a mere 2%, the first time on record, according to the index.

These figures however, will not hold much weight with most in the Spanish property business, who would not believe that new builds are down by just 2% in a year. Experience in the business would suggest a figure closer to 20% would be more accurate for both resale and new build Spanish property.

On the brighter side, prices fell on average just 2.7% a quarter which is a fair improvement on the previous years 3.1% decline. This would suggest that there has been a slow down in the rate of price decline, which peaked at the end of 2008.

Prices by region fell the least in the three regions with the lowest priced property - Galicia (-0.5%), Murcia (-1.6%), and Asturias (-1.8%) and fell the most in the regions with the highest priced properties - Catalonia (-13.7%), Madrid (-11.2%) and the Basque Country (-10.8%). With Andalucía maintaining a much lower 3.9% decline.

Spanish Rental and Property News by News Desk

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