Accommodation in Spain at the end of 2013 will cost two times cheaper than before the crisis

Created on 29.10.2013 02:35:00
Accommodation in Spain at the end of 2013 will cost two times cheaper than before the crisis

According to the report "Tendencies in the real estate market", prepared by the estimated company and presented by its director general Juan Fernandez-Aseytuno, the cost of housing decreased by 15,7% for one year. In September the 2013th price of one square meter on the average made 1256 euros.

Proceeding from it, Fernandez-Aseytuno predicts that the prices in the secondary market of real estate should endure one more recession for 7,6% in the last quarter years, thus, average cost can make 1160 euros for square meter at the end of 2013.

In turn, the cost of new housing also continues to show a tendency to decrease, by September 30 already reached 2212 euros for square meter. In the report it is said that by December 30 the housing price in new systems can make 2000 euros that assumes depreciation for 9,5% from September till December.

The head of department of the estimated company believes that housing prices will keep such tendency to decrease that confirms observed acceleration of their falling in recent years. So, if to compare average annual cost in the third quarter 2011, 2012 and 2013, the registered decrease made 10,5%, 13,2% and 15,7% respectively. Despite such data, Fernandez-Aseytuno considers that "housing prices can continue to fall, but it doesn't mean that activity isn't restored". "I consider that activity in the housing market in Spain will renew even earlier, than the prices", - he explained.

Research also shows that between the housing, considered high or quality "Prime", and housing of poor quality or slums there is a difference in more than 1000 euros for square meter. If to consider changes in a year, the quality real estate decreased in the price by 14,3% while the greatest falling of the prices is observed in the market of housing of the lowest quality and makes 22,8%.

Estimating the macroeconomic changes influencing supply and demand of housing in Spain, in the report the conclusion is drawn that they stimulate both activity, and reduction of prices which are the real condition displaying a situation in the market.