Insurance News Archive

'Spanish property demand has plummeted'

Demand for Spanish property has fallen sharply, statistics show.

According to figures published by the country's National Statistical Institute (INE), the number of property deals decreased by 27 per cent in January, compared to the same time last year.

Futhermore, there has also been a fall of 25 per cent in the number of mortgages issued - the largest since 2004.

Meanwhile, the Spanish Ministry of Housing (MVIV) has recently revealed that the number of property resale transactions to foreign buyers dropped by almost 18 per cent between the second quarter of 2006 and the same period in 2007.

Martin Dell, managing director of property portal Kyero.com, said: "Even though these figures from the MVIV are now almost nine months old and have their limitations, it's the first time that this data has been made available to the public.

"It confirms the scope of the downturn in the number of property purchases by foreigners in Spain," he added.

However, Terry Walker of PropertyInSpain.net has recently claimed that the Spanish property market remains popular with investors due to its "accessibility, friendly culture and sunshine".

28 Mar 2008