Spanish Property Down but Murcia Bucking Trend
09 November 2011
In the year ending the third quarter of 2011 Spanish house prices fell by 5.6% according to the heavily criticised official department of housing index.
The index, which has been criticised for being badly inaccurate as to the depths of the Spanish house price crash showed that Costa Dorada was the worst performing region during the past year, with prices down 9.1%. Surprisingly Madrid was the second worst with prices down 8.5%.
This is surprising against the backdrop of capital cities across Europe and the world being hotbeds of demand from the world's wealthy, pushing up prices rapidly. Apparently not in Madrid, where the continued drop in prices is testament to just how badly oversupplied the Spanish capital was allowed to become.
According to the index just two Spanish regions, Tenerife (in the Canary Islands) and Extremadura, saw prices rise, with grow of 1.7% and 1% respectively over the year.
On a positive note, overseas demand is reportedly still increasing, with foreigners reportedly helping Murcia buck the downward trend, and Russians replacing British people as ardent buyers. According to Jesualdo Ros, head of the regional developers trade body, said that Brits have fallen behind Scandinavian, Dutch and Belgian buyers.
Murcia is reportedly proving extremely popular, because of low property prices, and a wave of infrastructural developments on the horizon, including a new Paramount branded theme-park, which now has firm plans in place to be operational by 2015.
"We are bucking the general Spanish trend here in Murcia as not only are we selling plenty of houses but we're also generating many positive headlines. As these three huge changes in infrastructure progress, our property sales will only get stronger as a wider global audience comes to hear of the grand plans," said Chris Mercer, director of Mazarron based Mercers.