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73% 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

Article by Dermot Quinn, Valencia Property Hound Ltd