Decline in property prices in Spain in the I quarter of 2011 accelerated. This happened due to the abolition of tax benefits for buying a home, writes the business portal BFM.ru.
According to the Spanish National Statistics Institute, in January-March, prices fell by 3.5% decline for the year was 4.1%. This is the highest in the IV quarter of 2009.
Tendency to confirm the data published in April by the Ministry of Economic Development of Spain. According to his estimates, for I quarter house prices fell by 2.5% and for the year - by 4.6%.
House prices in Spain began to fall in 2008 after several years of construction boom and rapid price growth. Investment in housing at that time was approximately 10% of GDP.
Spanish State Secretary for Real Estate and Urban Beatriz Corredor, has recently visited Moscow as part of the government delegation, at a press conference stated that there was now the most favorable situation for investment in Spanish real estate. Compared with the beginning of the crisis in 2008, prices in the country as a whole declined by 20%. The most significant drop in prices was noted in the resort areas, for example, Marbella real estate fell by 40% in Torrevieja (popular among the Russian investors in the resort province of Alicante) - 31%. At some resorts the Balearic Islands (in particular, in Minorca) price reduction of 50%.
Corredor suggested that prices could begin to rise later this year. However, experts of the Bank of Spain Research Center believe that real estate in the country will continue to fall in price until the end of 2012 - the beginning of 2013, the correction may take up to 10%.