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Spanish New Build Property Prices Dropped By 6.9% In 2012, 33.5% Since 2007

The average price for new housing in the capitals of province has gone down a 6,9% in 2012, situating itself in 2,212 Euros per square metre, so an average flat of 90 square metres would have a price of 199.100 euros at the present moment, according to a report by the Property Valuation Society.
Since the value of new housing reached its highest point, in 2007, their price accumulates an adjustment of 33.5%. This percentage equals, according to the Property Valuation Society to a 50.4% of the assets revaluation , at levels, therefore, dating the beginning of 2003.
During 2012, the price of new housing fell in all the autonomous communities and in all capitals of province. The biggest descents, by communities corresponded to Navarra (-12.6%), La Rioja (-11.6%), and Castilla-La Mancha (-10.2%), the only regions where the price contraction exceeded two digits. The smaller descents, were recorded in País Vasco (-4.1%), Canarias (-5.2%), Galicia (-5,6%) y Asturias (-5.7%).
Regarding capitals of province, the lowest drop in the price of new hosing was observed in Pamplona (-12.6%), Albacete (-12.3%), Logroño (-11.6%) y Soria (-11.2%). According to the Property Valuation Society, the average price of new housing dropped in 2012 more than a 10% in eight capitals of province, while in 9 other capitals of province it dropped less than a 5% and in 33 of them it dropped between a 5% and a 10%.
San Sebastián, Barcelona, Bilbao and Madrid are the capital of province with the most expensive square metre, above the national average of 2,212 euros, far away from Murcia, Cáceres, Badajoz, Pontevedra, Jaén, Cuenca, Lugo and Ciudad Real, capitals where the average value doesn’t reach 1,400 euros per square metre.
Property Valuation Society predicts that the housing supply will continue to be important in 2013, despite the reduction in initiated houses, and that the demand will stay weak, save for some punctual exceptions. Likewise, it predicts that the start in functioning of The Society of Real-Estate Assets from the Banking Restructuration sector (Sareb) can have a “considerable impact” in the evolution of prices.
Other articles of interest:
Property prices in Spain keep falling
Spanish Economy 2012: Consequences for the proeprty market
Low budget investors are chasing the market

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