The slowdown that is beginning to be felt in the Spanish property market is a far cry from the bubble threats looming over other major economic powers, but many hope that this slowdown will be the start of a sharp fall in prices. Unless there is a surprise, the forecasts do not envisage such a scenario and reality does not point in that direction either.
House prices in Spain continue to rise. They rose by 7.6% in the third quarter of the year, according to the INE’s Housing Price Index (IPV), and although their growth has slowed compared to previous quarters, the average cost of houses in our country is close to the maximum recorded in the 2008 property bubble. Specifically, they are barely 5.2% below that level after having risen by 51.1% since the minimum of the cycle, according to an analysis from banks Ibercaja’s.
The rise in prices is more extreme in the case of new homes, which have not only recovered the ground lost due to the financial hecatomb of 2008, but are already 12.8% above the peak of the previous cycle. The strong demand from buyers in the wake of the pandemic and the lack of sufficient supply to cover it have combined in the last two years, coinciding with a new golden age for Spanish property, and the result is a tension in prices that makes it even more difficult for some citizens to access property ownership.
From elmundo.es
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