Spain Real Estate News

What's really happening in the real estate world in Spain? The EOS Team are going to be keeping you up to date with everything that's happening from a market perspective.

House prices down in Spain
Friday, January 16, 2009 @ 12:24 AM

MADRID, Spain (AP) — Housing prices in Spain fell 3.2 percent in 2008 in the first such drop in 15 years, the government reported Thursday.

The figure illustrates the dramatic decline in the Spanish real estate sector, which had been the main engine behind more than a decade of solid economic growth but collapsed over the past year or two.

During the market's heyday, prices rose as much as 18.5 percent in 2003, for instance.

The last time housing prices in Spain posted a decline for an entire year was in 1993, when they slipped 0.4 percent.

The new decline represents not a collapse in the market but rather a desirable moderation because prices had been so high they did not reflect the real value of homes, Anunciacion Romero, a senior official at the Housing Ministry, told reporters.

Spain's once-buoyant economy is on the verge of recession, and its 11.3 percent unemployment rate is the European Union's highest.

The housing fall has been devastating for the economy because construction and related industries accounted for up to 20 percent of Spanish GDP.

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5 Comments

Fraser Cameron said:
Thursday, January 15, 2009 @ 11:40 PM

Who is the Government trying to kid? Housing prices in Spain fell 3.2% in 2008? Don't they look at spanishpropertyinsight.com which provides a more accurate account of what has been happening to the Spanish property market?

SUSAN said:
Friday, January 16, 2009 @ 8:13 AM

Spain would have to give away property before i would spend another euro in the country. The more the british buyer is abused by bank guarantees, lawyers and developers the more Spain is getting its just rewards.

pcallard said:
Friday, January 16, 2009 @ 3:36 PM

if they cut the red tape and did something at the town halls people would be happy with there properties and be able to use them hence putting money into spain but the properties are empty awaiting town hall to grant LFO,S etc so no property no money !!!!!!!

come on just do it

rob in madrid said:
Saturday, January 17, 2009 @ 8:39 PM

Spanish numbers can´t be trusted, overall prices are down about 30% and expected to drop alot futher. You can´t have 3 million (and expected to hit 4 soon) plus a 10 year plus supply of new homes without serious consequences. The Spanish are slowly comming to the realization that prices are starting to fall. Another year and a drop will be a rote.

Mike said:
Monday, January 19, 2009 @ 11:12 PM

Depends on where you live, quality of property and not listening to estate agents talking down your property because they are desperate for any sale to pay their bills. They will tell you anything to get that sale. Most people I talk to are holding out but have made a modest adjustment.

In northen Costa prices are holding at about 15-20% below values of 3 years ago so its been a bad year. UK buyers are trying to recover the pound drop by offering stupid offers. But in Altea flat values have not moved at all.

To the south of Alicante may be bad due to the volume of poorly builts and quantity.

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