Conflicting opinions muddy Spanish house price waters

  • 14 years ago
  • Uncategorized

Are you considering buying in Spain? If you are, recent comments from Spain’s Prime Minister have suggested that the time to buy is now.  However, conflicting information in a report from Basico Homes has cast doubt on whether Spain’s property prices have bottomed out.

Economic crisis in Spain ‘is over’

Speaking on the American television station CNBC, Spain’s Prime Minister Jose Luis Rodriguez Zapatero claimed that the economic crisis in the country was over.  “Over the last two or three months, we’ve seen that [housing prices] not only have not fallen but have even risen in some areas of Spain where people are buying their first home,” Mr Zapatero told the news provider.

The Prime Minister told that the property sector was well on its way to recovery, with prices having fallen as far as they were going to and with the property industry improving.

His comments suggest that you shouldn’t delay if you are planning to buy in the country.

Report suggests Spaniards expect property prices to fall further

However, new research from Basico Homes, a Spanish house builder, has found that four in five Spanish residents are expecting further price falls in the country’s property market.

The report found that 53 per cent of Spaniards believe home values will fall slightly in the next year, while 30 per cent think there will be larger reductions in values.

Only one in seven people questioned believe that prices will stay at the same levels or increase, which contradicts the comments made by the Prime Minister.  Many Spaniards still believe that prices have further to fall before the sector fully stabilises.

So, if you are considering buying a Spanish property, it is a case of whether you believe the Spanish Prime Minister or this recent report.  Either way, prices in Spain are set to remain at low levels for the foreseeable future.

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