Tuesday, 9 December 2014

Decline in property prices seems to have halted in Spain.

Quarter 3 house price data.

Whilst the data out from the INE in Spain today shows that there was a small decline in house prices over quarter 3 to quarter 2 the decline is minimal and relates specifically to resales rather than new builds.

The quarter broadly sat flat with the previous quarter and after two quarters of small but significant increases the trend seems to be one of general stabilization.

Unlike the TINSA house price index which has a base year of 2002 and has run for longer the NIE takes its base from 2007 and gauges not valuations but actual sale price from Land Registry.

The two reports have their own merits and measure slightly different things over different periods of time but both are now reporting at the very least a slowing in the drop of property prices and in many areas small increases.

Good time to buy in Spain

Owning a property in Spain, apart from the costs of purchase which remain high in Spain due to property transfer tax and legal costs, now looks to provide good value for money. After 7 years or so of declining prices at a time when other countries have continued to rise the price of real esate per meter square is now very attractive.

House prices and level of sales seem to have reached the bottom and should slowly but surely start to increase. Buyers from both the home market who now see prices much more in line with salaries and buyers from the international market whose confidence in Spain is growing should all help form part of an overall economic recovery.

Improving access to Spanish loans and better job prospects for unemployed Spanish are positives. factors likley to keep unsustainable increases at bay include oversupply of property and general Eurozone concerns.

Read the full article:- are property price declines finally stabilizing in Spain


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