Property market defies warnings of downturn
20 July 2006, MADRID — The Spanish property market is surprisingly strong despite repeated predictions of a slowdown, a reported published on Thursday said.
20 July 2006
MADRID — The Spanish property market is surprisingly strong despite repeated predictions of a slowdown, a reported published on Thursday said.
The study by the Banco Bilbao Vizcaya Argentaria (BBVA) said prices should rise by 8 percent this year – up from the 6 percent it had earlier predicted.
There had been an unexpected pick-up in the market, linked to factors like continued demand, the number of building permits, sales of concrete and ongoing price rises.
In the year up to April, the number of building permits rose by 6.6 percent and valuations went up 8 percent.
The number of new houses planned for this year were 850,000.
But the bank also predicted a "moderate adjustment" later on in what it said was an overheated market.
About 10 percent of house prices falling in real terms over the next year-and-a-half, the report said.
[Copyright EFE with Expatica]
Subject: Spanish news