Spanish property prices 2011

According to the latest statistics supplied by the INE (Spain National Statistics Institute) Spanish house prices fell 11.2 percent in 2011 with new build suffering an 8.5 percent fall and resale’s a 13.7 percent fall.

In Andalucia, home to the Costa del Sol, house prices fell a more modest 8.4 percent in 2011 with new builds dropping 5.3 percent and resale’s 11.8 percent. If the province of Malaga (where nearly a third of all sales are done) were removed from Andalusian figures, the figures would have been dire. But once again, the attraction of Malaga as a destination has helped minimize the damage.

At peak (2007)-to-present, Spanish property prices are (according INE) officially down 20.6 percent (new builds 11.9 percent and resale’s 27.7 percent). On the other hand Andalucian property has decreased by 11.9 percent from peak, with new builds suffering a 2.5 percent drop and resale’s a 20.6 percent drop.

Although hard to judge how much the market has decreased since 2007, the figure for Andalucian resale properties is broadly accurate. Before anyone decides to write an angry email decrying me as a ‘liar’ please remember that the INE figures are based on actual transactions completed and not on advertised asking prices, which in the past tended to be more ‘ambitious’.

I would also agree with the annual change of 11.9 percent. Although prime properties are holding their prices quite well, this only applies to properties that appeal to certain cliente. As always prices are reflected by supply and demand.

Andrew Bellés

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