Spanish property prices by annual salary

If you work in Spain, to buy a property it would take on average 8 years annual salary. At least according to a study published by the Foundation of Savings Banks (FUNCA) in the latest publications.

It appears that the article has taken into account the official drop in sales price (widely seen has not reflecting the true drops in price) and TINSA (valuation company) property valuations. So what does this mean, in 2005 you needed to dedicate 10.1 annual salaries to a property purchase and now in 2011 that figure stands at 7.86 annual salaries. Considering that property prices did not peek until 2007, I see this a quite a positive and seems to contradict the official price drop of under 20%.

Unfortunately no specific figures are given for the province of Malaga, but Andalusian Autonomous Community at 6.98 annual salaries. Considering the size of Andalucía and what a small percentage Malaga makes up of the total, plus the demand for properties by a range of buyer (yes even in this climate!) I would assume that Malaga properties would be above the national average.

Ever way I would take this information with a pinch of salt.

Regards
Andrew Bellés

One Response to “Spanish property prices by annual salary”

  1. Dear Nostromo,

    you are absolutely right, have corrected.

    Regards
    Andrew

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