Spanish homes continue getting cheaper at a great pace, statistic after statistic, regardless of the cause. So, according to the last report of the property prices index company Tinsa, the price of the home deepened its drop in the second trimester, going back 11.5% from Q2/2011 to Q2/2012. A percentage higher than that registered in the previous trimester of 9.2% from Q1/2011 to Q1/2012.
Property investors can certainly be ready and sharp the right strategy to get the most of this market which has already reached 2003 prices level.
In regards to the accumulated drops since the heights of 2007, the situation of the northeast peninsular quadrant stands out. It gathers the greatest cuts, led by La Rioja, which has already changed its values by -39.7%, followed very closely by Catalonia (-39.3%), Aragon (-37.8%), and the Valencian Community (-36.2%).
General Property Prices fall in Spain
The majority of the territories and provinces followed this path of descent. The fall of the home in La Rioja was the most notable, with 22.6%, a reduction that returns the prices in this community to the levels of 2003. Next came Catalonia (-18%), Aragon (-16.3%), the Comunidad Valenciana (-14%), Castilla y La Mancha (-13.8%), and Madrid (13.8%).
In line with the national average are Castilla and Leon (-11.8%), Andalucia (-11.6%), Navarra (-11.5%), Murcia (-10.8%), the Canaries (-10.6%), and the Balearic Islands (-10.5%). Completing the list, we have Extremadura (-10.1%), Galicia (-6.2%), Asturias (-5.2%), Ceuta (-4%), Cantabria (-3.6%), and Melilla (-3.3%).
Tarragona (-19%) and Toledo (-18.7%), the provinces with the lowest values between April and June
In talking about provinces, in addition to La Rioja, Tarragona (-19%), Toledo (-18.7%), Saragossa (-18.6%), Almeria (-18.1%), and Segovia (-18%) stand out. At the other extreme we find Cuenca (-0.1%) and Orense (0%). Lugo is the only province that presents a slight increase of 2.1% during the second trimester.
The northeast, the bottommost zone together with Castilla La Mancha
Among this highlighted group, although located in the central zone and influenced in its behaviour by Madrid, we also find Castilla y La Mancha, with a descent among the worst that has already reached -38.9% on average.
Toledo (-43.1%) and Guadalajara (41.1%) register the greatest falls since 2007
It is in these ranges where we find the provinces with accumulated cuts of more than 40%: Toledo (-43.1%), Guadalajara (-41.1%), Zaragoza (-40.4%), Tarragona (-40.2%), and Barcelona (-40%).
To these, we can add others with decreases since the height that are also very relevant, like Almeria (-39.2%), Malaga (-39.1%), Girona (-37.2%), and Valencia (-37.2%).
On the contrary, the provinces that showed less negative overall behaviour were those with less population density and with a less active market for second residences, fundamentally in the northeast quadrant. Among them are Soria (-13.8%), Zamora (-10.2%), Orense (-6.5%), and Lugo (-5.7%).
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