<< Back to Main Valencia Press Releases73% of Spanish Property Experts Consulted by CB Richard Ellis predict Spanish Property Price Rises
Added: (Thu Mar 15 2007)
73% out of a total of 342 company directors working in the property sector
in Spain predict price rises of up to 10% for 2007 according to a recent survey
conducted by CB Richard Ellis and published in the Spanish investment portal
Invertia*.Just 7.9% of the directors consulted believe that there will be a
drop in property prices which is a drop of 5% compared to the same time last
year.
According to Spain's Ministry of Housing property prices increased on average
by the following amounts over the last 6 years:
2001 11.1%
2002 17.3%
2003 18.5%
2004 17.2%
2005 12.8%
2006 9.1%
In 2004, 24% of company directors consulted by CB Richard Ellis believed that
there would be a drop in property prices compared to 12.5% in 2005, 13% in
2006 and now in 2007 just 7.9%.
The following is the breakdown of the figures re the opinons of the property
directors who were consulted re possible price fluctuations for this year:
36.2% believed property prices would increase up to 5%,
37% believed property prices would increase between 5 and 10%,
5.5% believed property prices would grow by more than 10%,
13.4% believed property prices would just hold at their 2006 levels,
7.9% believed property prices would drop.
56.7% believe that demand for new property will drop which is 8.5% less than
a year ago.
Adolfo Ramirez-Escudero, head of Capital Markets with CB Richard Ellis believes
that the correction between offer and demand will be absorbed by light price
increases above the rate of inflation combined with a drop in the construction
of new housing.
He also firmly believes that second-hand residential property normally copes
well with market changes without prices actually dropping.
This latest piece of property news from CB Richard Ellis is heartening both
for existing Spanish property owners and those thinking of taking the plunge.
As always one should search out the best available property in your choosen
location within your purchasing budget by using an established property search
company such as Valencia Property Hound Ltd.
*http://www.invertia.com/noticias/noticia.asp?idNoticia=1711123
