Lowest increase in flat prices since start of boom

20th July 2007, Comments 0 comments

20 July 2007, MADRID - The price of flats went up 5.8 percent in the past year - the smallest increase since the building boom began in 1998.

20 July 2007

MADRID - The price of flats went up 5.8 percent in the past year - the smallest increase since the building boom began in 1998.

According to the latest figures from the Housing Ministry, in the past three months house prices have risen 1.5 percent.

The average price per square metre in a new home EUR 2,054 -  EUR 261 more than the year before.

The director general of housing, Rafael Pacheco, said: "House prices were in the clouds but now are coming down slowly." 

He said the deceleration of the market was necessary but did not represent a danger to the economy as a whole.

In the past 11 months, prices in Madrid, Navarre rose 3 percent, Murcia (9,5pc), Extremadura (9,5pc), the Balearic Islands (7,8pc), Galicia (7,5pc) and Ceuta y Melilla (10pc).

Increases in other areas were lower: Aragón (5,9pc), Catalonia (5,8pc), Cantabria (6,5pc), the Basque Country (6,7pc), Canarias (6pc) and Castilla y León (6,pc) and Asturias (7,2pc.

[Copyright EFE with Expatica]

Subject: Spanish news

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