Fall in value of Spanish property

API estimates that property prices have fallen by up to 40% due to slump in sales
According to Santiago Baena, the chairman of the association Agentes de la Propiedad Inmobiliaria de España (API), the price of property in Spain has fallen by 40%. This figure is far from the official figure of -3.2% provided by the government. Furthermore, the fall in sales has led to the closure of 50,000 Estate Agent’s in Spain.

During the opening of the fifth national conference of API which is taking place in Logroño this week under the slogan ‘The Key to the Future’ Baena said that prices had adjusted enormously and that now was the ‘moment for buyers not for sellers’.
Cristina Thomas, the general secretary for the Ministry of Housing, also spoke at the conference. She said that property sales had fallen by 32% in 2008 but that she was confident that these figures would start to get better over the next few months.

She said that the government was trying to ease the effects of the slump in property sales by combining the interests of constructions companies and property promotors with thousands of citizens who aspired to own their own homes through the State Housing and Rehabilitation Plan 2009-2012.

She also asked the financial sector to help the Ministry of Housing put their plan into actions. So far no agreement between the government and the banks has been reached over the availability of finance for those wishing to take out mortgages under the government’s proposed Housing Plan.