The biggest annualised fall in Spanish property prices since the crisis began.
Average Spanish house prices fell 11.5pc in March compared to the same time last year, according to the latest data from Tinsa, one of Spain’s biggest appraisal companies.
That represents the biggest fall in the index since the crisis began and since Tinsa started publishing this index.
Housing on the coast, where most holiday homes are located, fell 10,79pc, marginally less than the national average. Prices in the Balearics and the Canaries were down 9.71pc.
Peak (Dec. 2007) to present, average national prices have fallen 28.6pc and by 35pc on the coast, all according to the Tinsa Index.
news like this does nothing but perpetuate this crisis
Would you prefer to have bad news suppressed?
Bob, be assured it does not perpetuate the problem, it allows people with limited funds to use fair judgement to determine their buying strategy. A flattening of the fall in prices from the dizzying heights pre-crisis will herald a spate of new buyers and an end to the losses.
Apart from the reduction in VAT on new-build, the Spanish government offer no incentive to new buyers and current costs of ownership and taxation are definitely putting off those on the sidelines.
Quite right Mark. The more information people have about the true state of a market, the quicker it will return to realistic prices. In Spain’s case, as in other countries, it’s going to take a long time before things revert to ‘normal’.
Understandably, when prices are falling, property owners curse us journalists when we tell would-be buyers that values are dropping – but they are always quick to raise their selling prices when the press tells them that demand is soaring.
Property is a market for grown-ups. The tide lifts all of the boats in the harbour at the same time, then drops them all again as the cycle continues. If you can’t accept the economic tide, best stay out of the property market.
Your site is an invaluable source of information for investors in Spanish property. Keep on writing for the grown-ups.
I have a property in Spain, with no intention of selling, and I want accurate information about its value; thank you Mark for providing that.
I also think that a small part of the reason for the current disaster on the current property marketin Spain is the lack of trustworthy information. For a market to operate buyers and sellers need accurate information.
Hiding falls in value is perpetuating this crisis. If the Spanish banks had accepted true valuations we would have reached the bottom of the market some time ago. As it is its been a long depressing slide. Now though, the bottom is within sight as the banks are having to release their properties at prices at which they will sell. That’s going to reduce the values further, but as it levels off that should be the bottom. I foresee that being before the end of this year. When will it rise again? The best locations and best properties will start it and gradually pull the others along behind them. Going to take many years and not reach the previous levels in real inflation corrected value unless there is a major worldwide economic change. So live with it – the average property is no longer a speculative investment, given the costs of purchase and sale. Buy to occupy and enjoy.
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