Housing sales plummet 16.5 percent in Spain

10th June 2009, Comments 0 comments

Housing sales hit its lowest point since 2004 as number of properties sold fell 16.5 percent in the first quarter of 2009 from the previous quarter.

Madrid – Housing sales in Spain plunged 16.5 percent in the first quarter from the last three months of 2008, the government said Tuesday.

A total of 104,703 properties were sold during the period, down from 125,419 in the previous quarter, the housing ministry said.

On an annual basis, the decline was 34.19 percent.

A study by Spain's second-largest bank BBVA last week predicted housing prices in Spain would fall nearly 30 percent between 2008 and 2011 before they start to recover from the collapse of the property boom.

Spain's economy entered into recession at the end of last year as the global financial crisis hastened a correction that was already underway in the construction sector. The slump in the building sector has spread to other areas, pushing the unemployment rate to 17.4 percent in the first quarter of 2009, the highest level in the 27-nation European Union.

AFP / Expatica

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