House prices rise by over 10 percent in 2005

2nd January 2006, Comments 0 comments

2 January 2006, MADRID — House prices rose in Spain by 10.1 percent in 2005 and are expected to keep going up this year.

2 January 2006

MADRID — House prices rose in Spain by 10.1 percent in 2005 and are expected to keep going up this year.

But the increases will not be so spectacular during the next 12 months, experts said.

The values of new homes across Spain have risen eight times in the past 20 years.

The average price of a new home measuring 100 square metres is now EUR 251,600, according to the Spanish Real Estate Society, a company which specialises in house price values.

In a study carried out by the company, it emerged that cities or towns with lower population densities showed higher property price rises.

So in places where there were less than 25,000 people, the average rise was 14.9 percent with prices per square metre (sqm) of EUR 1,593.

But in cities where there were more than 100,000 people, the increase was on average was 11.8 percent, with prices at EUR 2,078  psqm.

The study found prices should carry on rising, but by less, in 2006.

Barcelona was the most expensive place to buy a new home, with prices per square metre now at EUR 3,700, followed by Madrid at EUR 3,629 psqm, then San Sebastián at EUR 3,585 psqm and Vitoria in the Basque Country at EUR 3,013 psqm.

[Copyright EFE with Expatica]

Subject: Spanish news

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