Bank of Spain Sees Market “Adjustment” Drawing To A Close

Photo credit: ajgelado / Foter / CC BY-NC-ND

Photo credit: ajgelado / Foter / CC BY-NC-ND

The adjustment in the Spanish property market “is coming to an end”, after a cummalitive fall of 43 per cent in prices since the peak, claims the Director of the Bank of Spain’s Research Services, José Luis Malo de Molina.

“We’re currently in a stabilisation phase of the property market,” the bank executive stated, basing his views on data showing a rebound both in prices and number of property sales.

He emphasised the Spanish Statistical Institute (INE) house price index showing that property prices have been rising for two quarters after a price adjustment of 43 per cent from the peak, according to bank data and in real terms.

Malo de Molina also pointed out that the purchase of Spanish properties by non residents was growing again. The executive highlighted this group as a leading indicator since “they were the first to leave the Spanish property market as soon as they saw signs of a bubble”.

“The adjustment in the property market has been long and intense, but the good news is that this adjustment is coming to an end,” the Director of the Bank of Spain’s Research Services said. “We’re now in a stabilisation phase of the property market,” he claimed during his speech at a conference for financial directors organised by APD (Spanish Association for Management Progress).

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