Are property prices rebounding from the summer slump?

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

Real estate portal Casas.facilisimo.com reported that the average price for a second-hand home in Spain fell by 4.28% during the summer quarter, the largest recorded drop in the last 4 years. September, however, saw a slight increase of 0.21% compared to the previous month. This was the first increase seen in this sector since November 2010.

The dual inducement of a reduction in Value Added Tax (VAT) on new builds and holidays being affordable once more has caused investors to act and as a result, the fall in house price has come to an end – for the time being. “This rise does not mean that prices will begin to rebound, considering the depressed economic situation of banks and individuals,” warned a spokesperson for Casas.facilisimo.com.

Taking into account the price drop this summer, property prices accumulated a 7.43% fall in a year-on-year comparison. At the end of September the average price for a 70 sqm second-hand home was around €133,490, which represents an average of €1,907 per square meter.

The region with the cheapest second-hand homes was named as Extremadura, where a 70 sqm apartment costs on average just €74,620. The Basque Country was named as Spanish most expensive area. Here a second-hand home still costs around €230,580.

The situation is not unified across Spain and some areas fare worse than others. According to Cinco Dias, property prices continued to fall in Andalusia (a 0.92% drop), in Aragon (a 0.05% drop), in Castilla y Leon (a 0.54% drop) and in Madrid (a 0.74% drop).

Current winners in the property game are La Rioja, where the average price of a second-hand home went up by 2.79%, beating even the favourites, namely the Balearics, where prices rose by just 2.76% during September compared to the previous month. In Galacia a small increase of 1.74% was recorded, Castilla-La Mancha saw an increase of 1.92% and a 1.96% increase was recorded for Navarra.

SOURCE: http://news.kyero.com

  • Comments Off