According to a new report released by the Catalonian Savings Bank (Caixa Catalunya), the price of new houses in Spain will have risen by 16.2 percent by the end of 2005. This means that housing prices have risen at the same rate this year as 2003-2004, contrary to the expectations of some financial analysts at the beginning of the year who predicted a slowing down in the growth rate of Spanish property prices during 2005.
The Caixa’s semestral report says that the figure is slightly below the record 16.8 percent growth in housing prices experienced in 2002 in what was a boom year for the property market in Spain.
According to the report, the price per sq. metre of new property in Spain currently stands at 1,777 euros, that is 247 euros more expensive than last year.
The Caixa expects the trend to continue in the short term, despite a marked increase in the number of new houses on the market. 708,000 new housing projects have been undertaken so far this year, compared to 687,000 last year which then was an all-time record.
The report also expects the strong demand for new property in Spain experienced in recent years to continue.