Spain’s Economy Data Boost for Property

Because of a persistent rise of 2.7 percent in the fourth quarter, the economy of Spain grew by 2.6 percent in 2004 compared with the year before, as told by the Bank of Spain and property growth for 2004 is being projected at over 16 percent, after certain figures from the College of Property Registrars.

With the following data and the following positive figures, there will now be a shift in paradigm as offplan properties are then to be boosted in the Spanish Costas region as buyers traditionally renew their Spanish dreams at the start of the new year. According to registrars’ records, there has been a continuous climb of a yearly 3.90 percent in the third quarter of last year, diminishing from a growth rate of 4.46 percent in the second quarter. Last year has been one good year too as property prices were up by 12.2 percent for the first nine months of the year. According to the appraisers society, Sociedad de Tasacion, there has been a recent estimate of a persistent growth in house prices in provincial capitals which actually slowed to 12.5 percent last year from 16 percent in 2003.

Spanish property prices have more than doubled in the last four to five years, caused by the economically low interest rates in the eurozone, a higher disposable income and a buoyant job market. There are actually talks that house prices are ready to start to increase by 10 percent of this year, according to some analyst, with the European Central Bank not allowed to start the increase of official interest rates before the second half of this year. But in places which are considered the region’s hot spot, Spanish prices are set to increase by as much as 25 percent more than the national average.

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Spain’s Economy Data Boost for Property

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