Grupo Vapf

Predicted increase of property prices as from 2011

According to the last report published by the investigation area of the Instituto de Práctica Empresarial (IPE) or Institute of Business Practice, property prices will start to increase as from 2011.

The report states that at the end of this year the drop of property prices will be next to zero, figures that will start to stabilize at the beginning of 2011, half way through 2011 the previsions indicate that the property price in Spain will increase with an annual rate between 3-4%.

These details are supported by the evolution of various different objective variables such as the “absorption of the property stock” (housing stock 800.000 units by mid 2009, mid-2010 housing stock 614.742 units), and the decline in housing prices in recent months, has started a negative trend indicating that prices will probably stabilize in early 2011. They predict that the start of the urban development activity in Spain with the launch of new projects, will be more immediate in the areas were the stock is liquidated sooner.