Spanish real estate market: declining sales and a reduction of construction

16.11.2010 17:53
Real Estate Market Analysis | Spanish real estate market: declining sales and a reduction of construction After eight months of growth in the property market in Spain has suspended its development. In September, fell and prices: greater in just the last few years. And it happened immediately after a significant increase in August.

In September there were 31.763 homes sold, down 19% than in August and 4.5% over the same month last year. According to the Spanish Property Insight, compared with last year, sales in September fell by 28% in Estramadure, 27% in Castell?n, 25% in Granada and Cadiz. On the other hand, sales rose 49% in Teruel, 25% in Huelva, and by 18% in Tarragona.

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Deals on new and old housing in this month there was not much, but sales of new buildings were disappointed, especially those that have fallen by 10% compared to last year.

The situation is exacerbated by an excess amount of residential buildings. But it has already reached its peak value and now begins to fall, thereby eliminating one of the biggest obstacles to the development of the industry. According to independent analyst Mark Staklina, an excess of new construction will decline by 20% by 2011 as rising demand simply absorb all the excess floor space. In spite of everything, from the beginning of the year the market grew by 10,3%, and we need to wait a couple months to see whether after September continued failure or begin to rise.
Content tags: Overseas property
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