House prices up 13pc in 2005 as boom slows down

20th January 2006, Comments 0 comments

20 January 2006, MADRID — House prices rose by 12.8 percent in 2005, showing a general slowdown in the property boom.

20 January 2006

MADRID — House prices rose by 12.8 percent in 2005, showing a general slowdown in the property boom.

It is the smallest rise in the price of new and 'used' homes in four years, according to the Ministry of Housing.

New government figures released showed the increase was still significantly lower than in 2004, when house prices went up by 17.2 percent.

Not since 2001, when house prices went up by 11.1 percent, has the average yearly increase been so comparatively low.

Figures showed that up to 31 December 2005, the average house price, measured in square metres, was EUR 1,824.

Rafael Pacheco, director general of architecture in the ministry of housing, said the figures were to be expected.

He added that more reasonable house prices should follow.

The official figures match similar reports by the Spanish Real Estate Society, which said recently prices rose by 10 percent last year.

The BBVA bank has also predicted a rise of six percent in 2006.

Valencia saw the highest price rise last year with 16.5 percent, followed by Galicia and Castilla-La Mancha where average increases were 15.1 percent and 14.6 percent respectively.

Cantabria saw the lowest increase of 6.6 percent, followed by Castilla y León with 7.5 percent, then Catalonia at 8.8 percent.

The most expensive place in Spain is Madrid, where average prices are EUR 2,748 per square metre.

In the Basque Country the figure is 2,585, while in Catalonia it stands at EUR 2,092 and in the Balearic Islands the price was EU 2,025.

[Copyright EFE with Expatica]

Subject: Spanish news

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