Friday, 7 March 2014

2013 another year of price decreases in Spain

INE Indice de Precios de Vivienda 


Issues today for the 7th year was the house price index showing what has happened to house sale prices both regionally and nationally in Spain.

For those considering when buying in Spain is the right time the data does show some slowdown in the level of decrease being experienced at least in some pockets of Spain.

Post the property boom due to a large oversupply of housing stock, economic difficulties within Spain and Europe and well reported lack of legal protection due to rogue local authorities prices in Spain have been falling.

How far have prices fallen since the boom years.

2007 was the last year of growth showing an increase of 9.8%. Sonce then house prices have fallen by 41.9% as a national average. Areas like to Balearics, Canaries and other tourist destination have held up slightly better. The Murcia region home of UK advertised Polaris World has seen some of the highest falls in Spain.

In 2013 house prices dropped by 10.6% in comparision to the 13.7% fall in 2012. The third quarter of 2014 showed some small growth but this fell back again in the fourth quarter.

Split of property type

Over the last couple of years new build prices have held up better than resales but this trend now appears to have halted with the average drop across both types of purchase being in line with each other. This may be a reflection of Banks being willing to sell developments they have taken over at more realistic prices and developers themselves being more pragmatic in order to encourage sales.

What can we expect for 2014

With Spain recovering slowly, higher levels of legal protection, and strong currency exchange rates for countries outside the Euro International Buyers are starting to look more seriuosly at Spain as a good place to buy. These factors along with a recovering national market may mean we see prices stabilising  and possibly showing small levels of growth toward the back end of 2014.

Read full article : buying in Spain yearly house price index for 2013

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