House prices showing signs of a slowdown 02/01/2007 00:00

2 January 2007

MADRID — Houses price rises showed a small fall last year compared with the year before, according to figures released on Tuesday.

New homes went up by 9.8 percent on average, compared with 10 percent in 2005, said the Valuation Society, a company which specialises in property prices.

Analysts said this showed signs of the much-vaunted slowdown in house prices.

It was particulary marked in the second half of the year, when homes rose 3.3 percent in value, compared wth the previous six months when they rose 6.6 percent on average.

But the Society said the market remained "very active" in 2006.

In terms of prospects for 2007, the Society said house prices will continue to increase but by less than in 2006.

The average price per square metre is EUR 2,763 making the cost of a home of 100sqm around EUR 273,000.

But in most cities prices rose by up to 15 percent last year.

In order of ranking, the most expenseive cities were Barcelona, Madrid, San Sebastián, Bilbao, Vitoria and Zaragoza.

On average house prices in cities across Spain went up 12.3 percent.

[Copyright EFE with Expatica]

Subject: Spanish news