Spanish property prices reaching 2002 levels

The cost of the typical home in Spain now has nearly reached the same price guides set in 2002 according to the latest figures released by the Spain’s housing department.

While there have been price rises between 35 to 37% in this quarter, after these figures are readjusted for rising cost of living and other economic values, costs have actually only risen by an average of 4.5 %, returning them to practically the exact same level as a years ago.

In numerous locations property costs are continuing to fall. The overall sales values in Spain fell by 9.5 % in September compared with 2011. Since the peak 2009 of the market prices have actually fallen by over 25%. Nevertheless, hard hit beach and coastal locations have seen even more dramatic property price drops, with the overdeveloped Costa del Sol seeing harsh decreases and a wide range of cheap bank repossessed properties flooding the market.

Present market conditions consisting of the fact that home mortgages are 40 % more affordable than they were in 2008 which Spanish rental yields are rising, imply that now could be the ideal time to purchase a Spanish holiday residence or investment property.

The average Spanish property prices today are around 1,500 euros per square metre (depending on location etc)… Costa Blanca is seeing a revival ‘albeit a small one’, but it’s heading in the right direction Quotes Jan Jackson from Overseas Property Shop. We, like other agents are realistic about the recovery in the area, but encouraged as are seeing more clients month on month.

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