The Spanish property market shrank by 29% in 2008, according to the data released today by Spain’s National Institute of Statistics (INE).
Not including social housing, the number of properties sold in Spain fell from 715,244 in 2007 to 508,494 in 2008.
Transactions involving resale properties fell by 39%, whilst sales of newly built properties finalised by developers fell by just 14%.
The new build sales figures are misleading, suggesting that demand for new property has held up better than for resales. In reality, demand for new homes from developers slumped in 2008, but this won’t show up in the INE’s figures until later this year, for which you can blame long lead times in the construction business.
The following table shows property sales figures (not including social housing) per region for 2007 and 2008.