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Spanish property market shrinks 20pc in 2011

The Spanish property market contracted by 19.8pc in 2011 after the feeble recovery of 2010 ran out of steam.

2011 was the worst year on record since Spain’s property boom turned to bust, as illustrated by the chart above (data from the INE).

There were just 313,637 homes sales in 2011 (excluding social housing), down 20pc on 2010 and 56pc (that’s right, more than half) on 2007.

In value terms, the market has shriveled up to 30pc or less than what it was in the go-go years.

If anything, the trend got worse towards the end of the year, with December down 26pc compared to the year before, considerably worse than the -17 YOY in November.

There was nothing about 2011 to suggest a recovery anytime soon. That said, it’s difficult to imagine that 2012 could be any worse. My guess is that prime segments will touch bottom in 2012, if they haven’t already, then track sideways for a year or more. That would be good news of a sort.

Non-prime will just carry on going down.

The following table summarise all the key transaction data for the last 5 years:


SPI Member Comments

5 thoughts on “Spanish property market shrinks 20pc in 2011

  • joanne ocarroll says:

    we have just returned from a holiday in Torrevieja and spent some time touring the area. what amazed me was the fact there is so much building activity and new build properties being promoted. What is going on? whay are the Spanish continuing to build when the exisating properties can’t sell? I don’t get it.

  • Reasons
    Got permission to build
    Got money from the bank
    Bank has written down as assets at the selling value not of the land but of the finished construction.
    This gives the bank more time until they finally decide what to do.
    In the meantime the directors milk the bank, get a golden handshake and like rats jump the sinking ship.
    What could be simpler!!??


  • Does this table include all Spanish property?
    Or a special property segment only (which than)?
    313637 – is the hole market for 2011 (total), incl. bank’s property also and all transactions?

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