Double Good News on Spanish Property Prices

Good news for Spanish property buyers as the rate of increase for the properties reached to 13.4 percent, the slowest in the longest time, in the past 12 months – the beginning sign of an equity slowdown as the mark soared up to 25 percent in the Costa Calida region back in 2004 and averaged 18 percent in other home areas in the region.

The average cost per square meter for used houses and new houses between September 2004 and last month have begun to slow down in the long time “boom” of the Spanish property market, the government said.

Director-general Rafael Pacheco of the Spanish Ministry Housing “political architecture” section said the increase verified the long predicted slow-down had begun and the government’s efforts to lie low the housing market had immediately paid off. The only fear that Spain’s socialist government is the backlash if the property market bursts wiuth millions of euros in which they would not be able to return back. It was a rise to 5.7 percent of the price of protected and state properties in the past year, and on the other hand, an increase of 13.2 percent of the general index of property transpired.

House prices of some regions went down also, such as the Cantabria in the north, which went down to 0.7 percent and the Extremadura in Western Spain, which went down to 3.6 percent – regions that were generally not affected by the second home and holiday market on the Mediterranean coast.

And in some places such as Madrid, Navarra, the Canary Islands, Castilla y Leon, Murcia, Aragon, and Andalusia, prices also increased by no less than 1.5 percent of the national average.

It is quite expected that the decrease of house prices will likely grow an annual equity of 12 percent forecast over the leading banks, Caja Murcia and CAM Bank, which are both expecting the same growth for 2006.

Posted on: Spain

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Double Good News on Spanish Property Prices

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