New law will raise house prices say developers
21 July 2006, MADRID — Property developers claimed on Friday a new law will push up house prices by up to 10 percent.
21 July 2006
MADRID — Property developers claimed on Friday a new law will push up house prices by up to 10 percent.
Instead of helping to reduce prices, the Land Law's have the opposite effect, say the Association of Spanish Property Developers (APCE).
The law means developers must hand over between 15-20 percent of land which has been classified for urban use, says the APCE.
They claim land makes up between 40-60 percent of a house's worth.
This will mean the new law will put more financial burden on buyers as developers would pass on the extra costs to them, says the association.
The housing ministry said house prices in the past year to June had risen by 10.8 percent, a fall from 11.8 in the 12 months to March.
[Copyright EFE with Expatica]
Subject: Spanish news