Property prices down 5.6% in Spain

Wednesday, November 09, 2011

Property prices down 5.6% in Spain

The price of property in Spain has fallen by an average of 5.6% over the last 12 months, according to the Official House Price Index from the country's Department of Housing.

Prices fell the most in the Costa Dorada where they were down 9.1% followed by Madrid (down 8.5%) and Murcia (down 8.3%)

Only two regions reported price rises and even these were small - property in Tenerife saw a price of 1.7%, while house-hunters searching in land-locked Extremadura in western Spain will see a small increase of 1%.

The falling prices come despite increased investment in many of the regions. Murcia in particular is undergoing extensive regeneration, with a Paramount branded theme park being built, a new international airport being constructed at Corvera and the imminent arrival of the AVE train network extension looking set to boost the area's economic and tourism prospects.

Chris Mercer, director of Murcia based agents Mercers comments: “Murcia will be viewed as a secure investment, particularly for rental income with the considerable job creation in the area. Paramount alone is said to require 22,600 construction workers, great news for the region and of course this influx of workers will require accommodation, so our investment clients are looking forward to a profitable near future.”

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