House prices rise by 12pc, but slowdown goes on

30th June 2006, Comments 0 comments

30 June 2006, MADRID — House prices went up by an average of 11.9 percent in the past year, according to figures released on Friday.

30 June 2006

MADRID — House prices went up by an average of 11.9 percent in the past year, according to figures released on Friday.

This represented a rise of 1.2 percent compared with the 12 months between June 2005 and the same month in 2004, when house prices rose by 10.7 percent.

The Spanish Valuation Society said in a study on the first six months of the year that homes increased by 6.3 percent – or 1.8 percent more than in same period the year before. 

In 42 provinces of Spain, the cost of a new home rose by an average of 5 percent, but it only rose by less than 4 percent in three other areas.

The most expensive cities to buy were Barcelona (EUR 4,034 per square metre (psqm), Madrid (EUR 3,788 psqm) and San Sebastian (EUR 3,786 psqm) – showing rises of 9 percent,  4.4 percent and 5.6 percent respectively.

The cheapest cities in Spain are Lugo, Pontevedra and Badajoz, where the average price per square metre was EUR 1,400.

The areas of the country which showed the highest rises in house prices were Catalonia (8.8pc), Aragon (7.7 percent), Castilla-La Mancha (7.5 percent), Andalusia and Valencia (both 7.4 percent).

The report said there was a steady slowdown in price rises, partly as more families are becoming laden with debt and cannot afford to buy a new home.

[Copyright EFE with Expatica]

Subject: Spanish news

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