Photo: New Houses Prices Spain Continue Downward
Prices of new Spanish houses fell another 6.9 percent in 2012 and have now plunged by more than a third since their peak in 2007, an appraisers’ association said Wednesday.
In its latest report, the Sociedad de Tasacion predicted that prices would continue to fall in 2013 and could begin to make properties attractive to “international investment groups.”
New house prices have plunged 33.5 percent from the pinnacle of Spain’s long-building real-estate bubble, the collapse of which has had a devastating effect on the country’s economy.
Current housing prices are at 2003 levels, or roughly 2,212 euros ($2,900) per square meter built, in the country’s provincial capitals.
The Sociedad de Tasacion said several factors contributed to the continued drop in new house prices in 2012, including a sky-high unemployment rate that is already more than 25 percent and is expected to rise further over the next several months.