Buying Property in Spain Report 2010

So where are we in 2010 with the Spanish property market?

According to Idealista, by the end of August 2010, prices fell in 13 of the 17 Spanish autonomous regions with the biggest drop of -2.4% occurring in Catalunya.  Murcia dropped by -2% and La Rioja by -1.6%). Prices increased in 4 of the regions with the biggest price jump (2.3%) occurring in the Balearic Islands. Navarra and Pais Vasco (Basque Country) rose slightly by 0.2% and Andalucía by 0.1%.

Overall, property prices dropped across Spain by the end of Aug 2010 by 1.1% with the price per m2 dropping from €2,365 by end July 2010 to €2,339 by end August.

Property asking prices by end August was the highest in Pais Vasco (Basque Country) at €3,531 per m2, followed by Madrid at €3,261 per m2 and Catalunya at €2,732 per m2.

The lowest asking prices were in Extremadura at €1,388 per m2, Murcia at €1,411 per m2, then Castilla la Mancha at €1,608 per m2.

By end June 2010, property sales had improved some 20% over the previous year yet had dropped by 30% over 2008 yet is only 56% of total sales volume achieved during 2007.

Supply at the lower end of the Spanish property market seems to be exploding as a glut of properties under €200,000 come onto the market in areas such as Madrid and Barcelona. Time will tell if the effort to ignite demand is successful or not.