According to Sociedad de Tasacion, figures on the Spanish property market are falling. Spain has seen incredible growth of the last decade in terms of property. The numbers show that for the first time, the boom may be subsiding.
Figures released show that there is still a rise, but much lower. New home costs rose 5.1 per cent over the course of the year. Yet, the last quarter showed only an increase of 1.1 per cent.
Prime Minister Jose Luis Rodriguez Zapatero did not see a problem in these numbers. In fact, he talks of a strong economy in the country. His holding point is what he called record growth in earnings in companies last year. Still, he acknowledges the property sector's slip as a logical step for a market that has been doing so well, for so long. In statements made, he plays down the talk by economists around the globe and their claims that Spain is slipping in its economy.
The property market slowdown is very clear. In new unit forecasts, just 500,000 new units are estimated while this is compared to 900,000 in recent past years. Nevertheless, during this time, Spain has continued to outpace most of Europe. The property boom has been in place for the last decade.
In figures, the fourth quarter showed a slight drop, 0.7 per cent in Barcelona with a drop of 0.4 per cent in Madrid. This does not take into account the like price growth in location such as Costa Brava, Costa Calida and Costa Azahar for the coming 2008 year.
