Spanish Property: Not So Bad by Comparison

May 28th, 2009

According to the latest house price analysis from Knight Frank, the Spanish property market isn’t faring too badly compared to some other countries.

Just focusing on countries which have experienced a year-on-year decline in house values, Spain is far from the worse affected.

At the bottom of the chart are Dubai and Latvia, both with whopping 30+ percent annual decreases in house prices.

Faring worse than Spain are Norway, Ireland, Denmark, Poland, Hong Kong, Estonia, UK, United States, Singapore, Dubai and Latvia with annual decreases between 9% and 36%.

Spain’s modest loss of almost 7% is nothing to shout about – except that, looking at some of its neighbours – it could be a lot worse.

Even though the Knight Frank report sees little reason to be cheerful, countries such as Israel and the Czech Republic actually managed a 10% increase in house prices comparing Q1 2009 with Q1 2008.

The bad news for Brits wanting to buy property in Spain is that over the last 12 months, UK house prices have slumped 10% more in the UK than in Spain. To make matters worse, Sterling is now worth 16% less in Euros than it was at the start of 2008.

A year ago, selling a UK home for £200,000 to buy a property in Spain would have yielded approximately €270,000 of buying power in Spain. Today, that same home would sell for 16% less – £168,000 – and translate to just €190,000.

However, due to the fact that Spanish property also reduced by 6% in value over the same period, that €190,000 would have a purchasing power of €201,000 when compared to 2008. Even so, that represents a drop in real terms of €70,000 or approximately 26% in just 12 months.

Data from Knight Frank

Related posts:

  1. Spanish Property Market Is Recovering
  2. House Prices in Spain Seem to Have Bottomed Out
  3. Spanish Property Prices Continue to Fall
  4. Property prices fall across Europe

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