The latest figures show that house prices in sunbelt regions fell by 15% in a year.
The website refers to the latest house price index from the appraisal company Tinsa, which shows that Spanish house prices declines are accelerating. Average national prices fell by 13.8% over 12 months to the end of January, by 14.9% in coastal areas, and 11.1% in the Islands. And from the peak to present, average prices have fallen 35.3%, and by more than 40% on the coast.
It also quotes data from Eurostat, which shows that Spanish house prices fell by 15.2% over 12 months to the end of September, compared with an EU-wide fall of just 1.9%. As such, Spanish property prices fell by the most in Europe.
As a result, experts argue that asking prices are now below replacement costs in many areas. Fernando Rodríguez de Acuña, from the analysts RR. Acuña y Asociados, said: “In more than half the country asking prices are now below the cost of construction,” in comments to the Spanish press.
Acuña also said that house prices will fall another 10% to 12% in annual declines of 5% for the next couple of years, and that some homes are now cheaper than they were in 2001, before the boom took off.
Bargain prices and historically low mortgage rates mean that there may never be a better time to buy a Spanish home, but it’s essential that clients seek the right advice and go through the same process that they would follow if they were buying a property in the UK. They should take independent advice from an English-speaking lawyer who is not connected to their seller, estate agent or property developer.
They should also choose very carefully and do their homework. There’s nothing to be gained, and everything to lose by cutting corners and failing to carry out due diligence.
