Property prices in Spain hit record low

June 4, 2014

Property prices in Spain hit record low

Fotocasa index shows that the decline in property prices in Spain continues. In May 2014 asking price reached €1,699 per sq.m, which is 0.7% less than in April, and 5.3% lower than a year earlier, reports ee24.com. Compared with the record levels in May 2007 the price of square meter has fallen by 42.5% or €1,253.

The good news is that the decline of 5.3% is the lowest in the last three years. Beatriz Toribio, head of research in Fotocasa, says that "the fall in housing prices in Spain continues to slow down because of the interest from foreign investors and improving economic situation." According to the expert, prices will become to grow after the recovery of domestic demand, which will happen with improvement in the labor market and facilitation of access to finance.

Of the 17 autonomous communities of Spain property gone up in value only in two from April to May - in Navarre (+0.5%) and Madrid (+0.1%). Property prices in the Balearic Islands remained unchanged. Among the other 14 communities the largest decline in prices occurred in Extremadura (-2.1%), in the Canary Islands (-1.8%) and in Murcia (-1.2%).

Basque Country remains the region with the most expensive housing in Spain (€2,913 per sq.m). It is followed by Madrid (€2,299 per sq.m) and Catalonia (€2,034 per sq.m). Cost per meter in Castile - La Mancha and Extremadura, in contrast, does not exceed €1,200.

Recall that we are talking about initially appointed prices (asking prices). According to recent data from notaries, in March 2014 the average transaction price was €1,248 per sq.m which is by 4.8% less than in March 2013.