By: polaris-world

polaris-world — Thu, 18 Mar 2010 20:29:58 +0000

Off plan property taking two or three years to complete will distort the figures, certainly on the costas. Prices in our market in Murcia are around 30% below their 2007 peak and have at this point in 2010 stabilised. Maybe the official figures will underestimate any recovery in the coming years.

By: Surveyor

Surveyor — Thu, 18 Mar 2010 18:26:23 +0000

My belief is that the reason for these statistics being completely wrong relates to the information being supplied by the registrars and ‘black’ money. Traditionally, it is reputed that approximately 30% of the price for any property was paid in cash and not recorded. With the strengthening of money-laundering discipline the prices being recorded are now closer to the full price being paid. In a level market this would have shown an increase of prices of up to 30%. However as the market has fallen by approximately 40%, it is only the difference that is showing i.e. approximately 10%.
The other answer could of course be that the figures are being deliberately manipulated to avoid the assets of the Spanish banks being decimated and many being shown to have failed in the same way as others have done in other countries.

Comments on: Official Spanish house price index invites ridicule

By: polaris-world

By: Surveyor