Wednesday, July 04, 2007

Further indication of Spanish housing market slowdown

The housing market in Spain is slowing down according to recent studies carried out by 2 internet property-selling sites in Spain. Both studies show that there has been a drop in price rises for used housing in Spain during the last year.

The study by Facilisimo highlights that prices rose by just 1.8% until June 2007, and that prices have infact dropped in 4 Autonomous Regions and 15 provinces in Spain. Their statistics show that in Madrid prices dropped by 1.98% to 4,151 euros per square metre and 1.85% in Barcelona to 4,900 euros per square metre.

Best places to buy in Spain according to current trends in the property market

According to Facilisimo's report, other parts of Spain are also showing signs of being affected by the slower rising prices in the used property market. The provinces with the biggest drop in prices so far in 2007 are Palencia (8.22%), Soria (7.43%), Valladolid (3.31%), León (2.89%) and A Coruña (2.58%). In Extremadura prices dropped by 1,9% to 1,288 euros per square metre and prices dropped by 0.4% to 2,712 euros per square metre in Navarra. In the Rioja, Catalonia, Galicia and the Valencian Region, prices rose by less than 1%. The biggest price rises were registered in the Balearic Islands (7.1%), Cantabria (7.01%) and in Andalucía (6.73%). The report expects the stagnation in property prices to continue for the rest of the year.

Another report by Idealista analyses prices in just 3 Spanish cities - Madrid, Barcelona and Valencia. Prices in Madrid were found to be stagnant and there was a small fall of 1.3% in Barcelona. This report claims that the slowdown in the Spanish housing market is increasingly evident given the new data of prices in Madrid and Barcelona since these two cities usually set the trend for the overal real estate market in Spain and are usually 5 or 6 months ahead of other cities.

Between April and June prices in Madrid remained stagnant with just a slight rise of 0.1% whereas in Barcelona the first drop in prices since 2001 was registered. Valencia, on the other hand was helped by the hype surrounding the American Cup and prices increased by 1.2% in the second quarter of this year. The report found that used property prices in every neighbourhood in Barcelona dropped slightly and that the price of a square metre in more than half of Madrid’s districts has also dropped. Idealista has admitted that their predictions at the end of 2006 that prices would rise by 1 or 2% this year turn out to have been over optimistic.
posted by Euroresidentes at 1:47:00 PM

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