The decline in housing prices in Spain will soon be over

Created on 22.10.2013 22:49:06
The decline in housing prices in Spain will soon be over

At present cost on real estate in new buildings already decreased by 30%, but on it further falling of the prices can stop. About it to be spoken in the report of the analytical center EuropeG...

The reason of this fact is clear: in Spain simply there are no other sectors which could compete in productivity with housing construction which makes the whole 9% of gross domestic product of the country and is the highest rate in EU. Though, according to the remark of analysts, and in this sphere decrease in activity is observed. For example, in 2006 construction of 763 thousand objects, in the 2012th – 52 thousand was begun. In the last some years of real estate price considerably fell – to 35% as a whole and for 30% in new buildings. However, according to professor Oliver Alonso, this process will come to the end soon. The difficult situation in the housing market in addition is aggravated by big debt on the credits in the Spanish banks, and also high unemployment rate. Improvements at least in one of these factors can be an incitement to the termination of falling of real estate prices.