Deceleration in Spanish house prices

Figures released yesterday by the Housing Ministry in Spain confirmed that during the last three months the trend of a slower rise in the price of houses continued, suggesting that the sharp rise in prices experienced by the Spanish housing market over the past few years has indeed reached its peak.

According to Ministry figures, house prices rose by just 9.7 percent during the last term, the first time in five years that prices have risen by under 10 percent and 1.1 percent less with respect to the first three months of 2006.

In some areas of Spain, for example some areas of Madrid, prices have actually started to fall, although this is not true in the case of new developments in popular coastal resorts. Properties most affected by the latest trend are resales in large urban areas where new developments and off-plan purchases prove an attractive option for first-time property buyers.

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