Blog Post

In Madrid, property prices decreased 4.2% during a seven months period (2011-12)

Everyone agrees: home prices are dropping.  But by how much?  And, above all, will they keep falling in Madrid?  TH, or Tasaciones Hipotecarias (Mortgage Appraisals), of BNP Paribas Real Estate, responds to the first question about Madrid Real Estate with an answer of 4.2% according to the last research dated Oct 2011 to April 2012. Nevertheless, prime areas in Madrid are stronger and stable
Such a decrease has been produced in the seven months period from October 2011 to April 2012.  In October of 2011, TH calculated how much average quality first-floor home properties of 100 square metres with two bathrooms and an elevator, but without a garage or storage, cost in 33 neighborhoods of Madrid.
There is a difference of 245% between the price of the most expensive district and the cheapest for that standard 100 square metre flat. The square metre fluctuates between 4,230 euros in the Salamanca district and 1,660 euros in Villaverde. The difference will be even greater if one compares the average flat in those two districts instead of the area and quality type.
“The difference between the prices that get higher is more or less around 6%, a figure of little relevance that responds to the market fluctuations. The reliable and stable data is that descent of 4.2%, similar to that that other sources note, from the officials to the housing portals,” clarifies Roldán, who points out that the fall is generalized, which ruled out indications that there is recuperation or that the pricing fall has hit its peak.
Gustavo Saiz Robres, director of TH, states as a fact that the prices are going to continue to fall. Good time to try to sell, bad for buying. “The buyer is waiting for greater reductions. To which one adds the difficulty for securing credit and the multiple negative circumstances that affect the value of the homes and the financial health of the family. I don´t believe that they have hit rock bottom because that downward trend is intended to stabilize,” he says, And he adds that this tendency is not uniform: “the prices are behaving in a more stable way in districts like Salamanca or Retiro where there is demand, than in some of the largest increases in the city.”
Article extracted from Spanish Real Estate
Other articles of Interest about Madrid Property

Leave a Reply

Your email address will not be published. Required fields are marked *

8 + 2 =