No end to property boom as prices rise 16pc
6 September 2005, MADRID — Spain's seemingly never-ending property boom appears to show no signs of abating, according to a new study.
6 September 2005
MADRID — Spain's seemingly never-ending property boom appears to show no signs of abating, according to a new study.
The report for the Caixa Catalunya bank said prices are expected to rise 16 percent in 2005, for the fourth year in a row.
Analysts said prices would rise 16.2 percent to an average of EUR 1,777 per square metre.
This is a slight fall from the rise of 16.8 percent in 2002, but still almost the same as during the 2003-04 period.
The upward trend is expected to increase despite a sharp increase in supply, with 708,000 new homes coming on to the market, compared with 687,000 the previous year – also a record.
Demand is expected to remain strong with a growth in mortgage lending forecast at 18.7 percent . This does, however, represent a slight fall from the increase of 21 percent in 2004.
The savings bank said the strength of demand was due to a rise in the country's population, low interest rates and a buoyant job market.
Analysts have been predicting slowdown in the property market for some time now.
[Copyright EFE with Expatica]
Subject: Spanish news