The Spanish real estate appraisal company, Sociedad de Tasación, has estimated that the market value of housing in Spain will fall to 1,160 euros per square metre by the end of 2013, which will represent a cumulative decline of 51.7% since its historical maximum registered in 2007, of 2,401 euros per square metre, just before the economic crisis began.
According to the agency’s report, ‘Trends in the Real Estate Sector’, presented by the CEO of the company, Juan Fernández-Aceytuno, the price of housing has fallen by 15.7% in value year-on-year, to stand at 1,256 euros per square metre on average in September 2013.
Fernandez-Aceytuno forecast that home values will suffer another fall of 7.6% in the last quarter, which will bring the average price per square metre to 1,160 euros at the end of 2013.
The report noted that the price of new housing continues its downward trend and reached 2,212 euros per square metre at the end of September. They also predict that by the end of December the price of newly built housing will fall to 2,000 euros per square metre, which would mean a further drop in value of 9.5% from September to December.
The Sociedad de Tasación has also estimated that housing prices will continue their descent, indicated by the acceleration of the decline of recent years, since the year-on-year values compared with the third quarter of 2011, 2012 and 2013, registered declines of 10.5%, 13.2% and 15.7%, respectively.
Fernández-Aceytuno stated:”housing prices may continue to fall, but that does not mean that the activity is not recovering. In fact, I consider that activity in the housing market in Spain will recover before the price”.
Prices are down in what is now a buyers market
The study also shows that, between prices of dwellings classed as high quality or ‘prime’ and lower quality or sub-standard housing, there is more than 1,000 euros per square metre of difference. Year-on-year, high quality homes have decreased in value by 14.3%, while poor quality housing registered the largest decrease with a fall of 22.8%.
As reported by El Mundo, the Canary Islands and Valencia are the two regions with above-average declines in their housing market values, with declines of 16.5% and 18%, respectively, comparing year-on-year values for the third quarter.
Andalusia and Madrid came next, both with losses in value of 15.4%, followed by Castilla la Mancha (-15%), Aragon (-14.6%), Catalonia (-13.6%), Castilla León (-12%), Galicia (-11.6%), Navarra (-11.5%), La Rioja (-11.2%), the Balearic Islands (-10.4%), Murcia (-10.3%), Asturias (-9.4%), Extremadura (-9.2%), the Basque Country (-8.7%) and Cantabria (-4.9%).
Since registering their highest values before the crisis, Valencia, Catalonia, Castilla la Mancha and Madrid are the regions which have recorded the largest declines, with drops in the value of private housing of 51.2%, 50.5%, 46.5% and 46.3%, respectively.
Article source: Kyero.com
