Property in Spain “best ever” investment

It has been a downgrade for the increase of house prices in Spain as it slowed down to 13.4 percent in the past twelve months – the first obvious slowdown as equity growth rose to a record high of 25% in the region of Costa Calida in 2004 and an average of 18 percent in other second home coastal areas.

Average prices for properties in Spain for new and “used” homes between September 2004 and last month showed a meltdown has begun for the first time as the “boom” market in Spain suddenly took a downward twist, the government claimed.

According to the director general of the Spanish Ministry Housing, “political architecture” section Rafael Pacheco, the increase verified that the long-predicted slowdown had already begun and that the efforts of the government to pacify the housing market had generated the desired results. The fear that the Spain’s socialist government is that they will not be able to pay back all ten thousands euros to millions if the property bubble bursts. The general index of property increased by up to 13.2 percent in the past year while the cost of state or “protected” properties inched its way to 5.7 percent during the same year.

The past three month already saw a decline in the house prices in some regions, decreasing to 0.7 percent in the Cantabria in the north and 3.6 percent in Extramadura in western Spain – places that do not get affected by the second home/holiday market exclusive only on the Mediterranean coast.

The cost prices of houses also event went up by less than the national average of 1.5 percent in some places in the region – Aragon, the Canary Islands, Madrid, Murcia, Navarra, Castilla y Leon, Andalusia.

With more figures still to come, the breakdown will most likely result to a final annual equity growth over the 12 percent prediction by the leading banks, CAM Bank and Caja Murcia, who are both actually expected the same growth in 2006. Both banks provide real estate developments and mortgage providers to Spanish and foreign investors.

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Property in Spain “best ever” investment

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