House prices in surprise 16pc rise

27th July 2004, Comments 0 comments

27 July 2004, MADRID – The price of new homes rose 16 percent in 2004 compared with the first six months of last year, according to figures released Tuesday.

27 July 2004

MADRID – The price of new homes rose 16 percent in 2004 compared with the first six months of last year, according to figures released Tuesday.

The Housing Valuation organisation (Tinsa) said the average price of new homes was EUR 1,726 per square metre in June.

Analysts said the rapid rise in house prices showed no sign of slowing down despite predictions to the contrary.

In fact, compared with the first six months in 2003, prices have risen faster.

In 2003, the average new house went up by 15.27 percent compared with 2002.

New flats have increased in price even more. So far this year, flats went up 17.18 percent compared with the same period in 2003.

The price per sqm is EUR 2,299 in major cities, while in the countryside, the average price was 1,420 per sqm - an increase of 15.43 percent compared with 2003.    

In the 'used house' market, prices rose more sharply. In the last 12 months, prices went up 18.85 percent until the average price was EUR 1,458 per sqm across Spain.

The housing along the Costas in Spain showed the sharpest rise because of speculation along the coasts and holiday home developments.

So-called 'second hand' homes showed the biggest price hike in Madrid (EUR 3,061 per sqm) Barcelona (EUR 2,658 per sqm), Bilbao (EUR 2,370 per sqm) and Pamplona (EUR 1,946 per sqm)

The lowest houses prices were found in Lugo (EUR 693 per sqm) Leon (EUR 996 per sqm), Badajoz (EUR 1,004.5 per sqm) and Ourense (EUR 1,009 per sqm).

[Copyright EFE with Expatica]

Subject: Spanish news

0 Comments To This Article