topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2132 0.59
DAX 6376.7 0.58
IBEX 30 6501.3 -0.64
CAC 40 3067.11 0.63
FTSE 100 5389.56 0.71
AEX 295.08 0.79
DJIA 12454.83 -0.60
Nasdaq 2837.53 -0.07
FTSE MIB 13166.81 0.09
TSX Composite 11576.47 0.09
ASX 4120.2 0.96
Hang seng 18800.99 0.47
Straits Times 2788.47 0.57
ISEQ 20 503.61 0.53
You are here: Home News Spanish News Spanish house prices to fall by 25 percent by 2011

Spanish News

archive
Enlarge font Decrease font Text size


22/12/2008Spanish house prices to fall by 25 percent by 2011

Prices of houses are expected to fall drastically during the next three years, predicts BBVA.

MADRID – House prices in Spain, which have posted one of the steepest rises in Europe over the last decade, will fall by about 25 percent in real terms by 2011, Spain's second-biggest bank, BBVA, said on Friday.

"The biggest adjustment (in prices) is expected during the next three years," BBVA chief economist Jose Luis Escriva told a news conference called to present the bank's latest study on the Spanish real estate market.

Spain has one million unsold homes and the glut of unsold properties will continue to rise in 2009, leading to the drop in prices, he said.

After a decade-long building frenzy, home sales dropped this year due to rising interest rates and the international credit crunch which have put mortgages out of reach of a growing number of people.

The subsequent crash in the property sector has helped push the unemployment rate up to 12.8 percent in October, the highest rate in the European Union, adding to the slump in home sales.

"Demand will be weak throughout 2009," said Escriva.

Home sales in Spain dropped by 36.4 percent during the third quarter over the same time last year to 118,533 units while the number of new housing starts fell during the period by 49 percent to 75,268 units, the housing ministry said on Thursday.

The sharp drop in home sales has so far only led to a slight drop in prices.

House prices fell by 1.3 percent during the third quarter over the previous quarter, the housing ministry said in October. It was the second consecutive quarter of declining house prices.

[AFP / Expatica]


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating



0 reactions to this article

Be the first person to add a comment
Discussion Forums

Technology in Spain

Sat phones/internet links

English in Spain

What is the best travel insurance cover to Spain?

American in Spain

U.S. citizens, plan to vote in 2012? Did you know...

Relocation to Spain

thinking of moving to madrid

Jobs in Spain

Job Agencies or how to find work.

participate in the forums

Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.