New house prices up 12.5pc – and it’s a ‘slowdown’

3 January 2005

MADRID-The price of new homes rose by 12.5 percent last year, according to a report.
 
Despite the increase, experts claimed it showed an overall slowdown in house prices.

In 2003, new house prices rose 15.8 percent in comparison with last year.

The report by the Spanish Valuation Society said the average price of homes, per square metre, was EUR 2,286.

Since 1985, the price of new homes  has risen seven times in Spain, on average by 10.8 percent each year.

The number of houses built has tripled from 222,300 in 1985 to 688,000 in 2004.
 
In Barcelona, Madrid, San Sebastián, Vitoria and Bilbao, the price per sq m was above average.

But in only three other cities did it dip below the average –  Badajoz, Lugo and Pontevedra ( on average to EUR 1,200).

The highest prices were in Barcelona at  EUR 3,442 per sqm.

In second place was Madrid (EUR 3,379  per sqm)  followed by San Sebastián ( EUR 3,358 per sqm) then Vitoria ( EUR 2,806 per sqm) in the Basque Country.

Lowest price rises were in Pontevedra ( 3.6 percent), Santa Cruz de Tenerife (2 percent) and Oviedo (1.7 percent).

The report predicted prices will continue rising this year but at a slower rate than in 2004.

[Copyright EFE with Expatica]

Subject: Spanish news