Housing prices stalled

19th April 2007, Comments 0 comments

19 April 2007 , MADRID – Spanish housing prices rose only 7.2 per cent year-on-year in the first quarter of this year compared to the same period in 2006, the lowest such increase since 1999, Housing Minister Maria Antonia Trujillo announced.

19 April 2007

MADRID – Spanish housing prices rose only 7.2 per cent year-on-year in the first quarter of this year compared to the same period in 2006, the lowest such increase since 1999, Housing Minister Maria Antonia Trujillo announced.

This slight increase meant that rises in the price of homes have been reduced by 60 per cent since the ministry was established by the ruling socialist government when it took office three years ago.

It was the ninth consecutive quarter of easing home prices on a year-on-year basis since late 2004.

According to Trujillo, the average price of a home in Spain in the first quarter was 2,024 EUR per square metre.

Analysts said the new figures support other indications that the Spanish property market is continuing to slow after almost two decades of impressive growth, including the once booming vacation home sector.

A recent report by the Bank of Spain said that real estate spending by foreigners dropped 11 per cent in 2006 to 4.9 billion euros. 

[Copyright Expatica with EFE]

Subject: Spanish news

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