Market cooling as house prices up 16.2pc

20th April 2005, Comments 0 comments

20 April 2005, MADRID - House prices in Spain rose by 16.19 percent last year on average, according to latest figures.

20 April 2005

MADRID - House prices in Spain rose by 16.19 percent last year on average, according to latest figures.

The Spanish College of Registered Homeowners said 'used or second-hand homes' rose in price by 17.35 percent while new houses or apartments went up by 14.5 percent.

Analysts said the increase in prices showed a cooling in the housing market, but it was still very healthy

Investing  money in property was still four times better than putting cash into a savings account, they added.

Analysts pointed to the last quarter of 2004 when prices rose by 3.5 percent or to EUR 1,540 per square metre (psqm) on average.

New homes went up in the same period by 3.21 percent or to EUR 1,624 psqm. Used or second-hand homes rose in price to 3.8 percent or to EUR 1,477 psqm.

The most expensive areas of Spain to buy a house were Madrid where the average price psqm was EUR 2,561, followed by the Basque Country at EUR 2,523 psqm and Catalonia at EUR 2,209.

The cheapest parts of the country to find property were in Extremadura (EUR 711 psqm) Castilla La Mancha (856 psqm) and Galicia (EUR 997).

Second-hand or used homes were the most popular section of the market, with 57 percent of transactions involving buying someone else's property.

[Copyright EFE with Expatica]

Subject: Spanish news

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