Spanish property market declines further in September 2011

Posted on March 2nd, 2012 in Real Estate in Spain by editor

TINSA’s latest General IMIE Index for Spanish property prices made for rather gloomy reading: the average house price declined by 7.4% compared to the same period in 2010.

Overall, seen in relation to the housing market’s peak in 2007, Spanish real estate sector has declined by an average of 24.1%.

Real estate in major cities and in capitals across Spain fared less well than the rest of the country, according to the General IMIE Index. In Spanish cities house prices fell by 8.9% last month alone, while at the costas property prices declined by 8.2%.

The Balearic and the Canary Islands have been fairly robust with regard to house prices and have fared far better than the rest of the country. Here property prices fell by only 6%.

Marc Pritchard, sales and marketing director at Spanish leading developers Taylor Wimpey de España, believes that things are looking up in the housing sector, with a small recovery having been experienced earlier this month in some Spanish regions. Alicante in particular had seen some positive sales transactions and an increase in enquiries, since the opening of a second airport terminal there would much improve access and therefore boost visitor numbers to the greater Alicante area.

This in turn, Mr Pritchard explained, should have a positive effect on the holiday lettings market, with an increase in rental incomes.

SOURCE: www.propertyshowrooms.com

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