Real Estate Experts Say House Prices Won’t Fall Further

Posted on August 4, 2016 in Property

The Professional Association of Real Estate Experts (Apei), which currently brings together a network of some 1,300 real estate agencies throughout Spain, considers that this is a good time to buy a home because, in their opinion, second hand housing prices will not drop any further. However, they also warned of risks if the political uncertainty in the country persists, saying it will cause delays in the recovery.

Óscar Martínez, President of Apei, pointed out that the housing market has been ‘moving’ for two years and that the rise in prices has been widespread. According to Martínez, “there isn’t much new construction, and this will raise prices further”, and he believes that, after the summer, and if unemployment continues to fall, the recovery will continue, although at a slow pace.

Eurostat’s latest data shows that housing prices climbed in Spain by 6.3%, the highest rise registered since 2007, and by 4% in Europe. In line with these data, Martínez predicts that second hand housing prices will not drop any lower and that the trend will be that they will “remain stable or rise slightly”, especially in areas where housing is scarce because of the lack of new construction.

El Economista reported that, according to Apei, well appointed housing prices, in general, are somewhat higher than in 2013, when prices at the time were reduced by some 45% compared with the height of the housing bubble in 2007. The average price per square metre of free housing stands at around 1,600 euros, compared with 2,085 euros in 2007, which is very similar to prices recorded in 2004, according to data from the National Statistics Institute.