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: