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Official Spanish property price index down 7.6pc

General index orange line, new build red line, resale grey line
General index orange line, new build red line, resale grey line

Spanish property prices fell 7.6% in the first quarter of the year compared to the same period last year, according to the official property price index published by National Institute of Statistics (INE). This is the biggest fall on record since the index started in 2007.

Broken down type of property, new build property prices dropped by just 2%, whilst resale prices fell a chunky 12.5%. This is the first time that new build prices have fallen since the index began.

In reality, the index has to be taken with a pinch of salt. Nobody in the business believes for one moment that new build prices are only down by 2% in a year. 20% would be a more accurate figure for both new build and resale prices.

Quarter to quarter, prices fell 2.7%, a slight improvement on the 3.1% fall clocked up in the previous quarter. This suggests that the rate of decline in prices might be slowing, having peaked at the end of 2008.

By region, prices fell the most in Catalonia (-13.7%), Madrid (-11.2%) and the Basque Country (-10.8%), all of them regions with the highest property prices in Spain. Prices fell the least in Galicia (-0.5%), Murcia (-1.6%), and Asturias (-1.8%), three regions with some of the lowest prices in Spain.

Year on Year % price change per region
Year on Year % price change per region
Summary table of index per region
Summary table of index per region

The INE compiles its index using data provided by notaries who witness most property sales in Spain. However, despite being present at the exchange of deeds, notaries do not, as a rule, witness undeclared cash payments, still a common feature of buying property in Spain. This distorts the data provided by notaries.

SPI Member Comments

3 thoughts on “Official Spanish property price index down 7.6pc

  • polaris-world says:

    We agree. Prices have dropped around 20%-25% from their peak. The official figures are distorted by the timing of off plan purchases. However, let’s look forward not back. We have noted a significant shift in the last two months for entry prices on the Polaris World resorts. Not to be taken as a general rise across the board but a clearing of the most distreesed sales, the first step to a healthier market. In the survey we ran last week twice as many participants believed prices would rise in the next 3 years as opposed to fall. Let’s hope they are right. You can view the results on our website: http://www.polarisworld.info

  • Spanish property says:

    Mark is on he money again but unfortunately there are stats within stats, have you tried buying prime location in Marbella recently ie an Apartment in Gran Marbella. there is hardly a drop at all. It second and third line where the real drops are from our experience anyway.

  • PW, I notice that you always put a positive spin on all the bad news!

    Lets be honest with ourselves Spanish property prices have a long way still to fall. A huge surplus of properties (growing monthly). A world-wide reputation for abuses of property rights; an artefact of the widespread corruption in virtually all towns halls. Unemployment skyrocketing killing any hopes of a recovery in the domestic market. And finally a global recession of an order never seen in 80 years kick-started by greed in the financial markets, the side effect which will be curtailing easy credit for many years.

    Don’t let your vested interests cloud what’s really happening out on the street.

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