Second-hand Spanish homes falling in price

COSTA DEL SOL: One of Spain’s most popular second-hand markets.

THE price of resale homes in Spain fell by 5 per cent in 2014, with the market in some areas near to bottoming out.

The latest house price index published by property portal idealista.com shows that the price of second-hand housing in Spain now stands at €,1594 per square metre, on average, which is 5 per cent lower than 2013.

It is suggested that the data shows a market “divided in two,” according to Fernando Encinar, head of research at idealista.com.

He said prices had already bottomed out or were close to doing so in some areas such as those with high tourism and big cities. In these types of area, investors are looking for profitability through the rental of properties, while in other provinces the prices are likely to continue to fall in the next 12 months.

Catalonia was the only region in the country to register an increase in the price of second-hand housing, and the greatest declines were in Cantabria, Castilla-La Mancha and La Rioja.

Encinar said he believes investors will account for most of the transactions over the next year, taking advantage of the ‘timid’ access to financing expected in the coming months, while private individuals with little savings would remain without access to buying a home in 2015.

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