Quest Greek Islands

Slowdown in price reduction brings optimism

In 2014, the rate of price declines for Spanish property decelerated to an average of 3%. This was a significant improvement over previous year when home prices declined by 9.2%. Current level of prices is 41.2% less compared to highest level in 2007 and at about the same level as in July 2003.

If more mortgages are granted, employment stabilizes and economic forecasts are met then there are indications that reduction in prices might stop in 2015. During the last few months, the number of home loans granted has been increasing and the jobless rate is beginning to decline, although it is at a very high rate of over 23% per cent, there is optimism in the housing market. For the coasts and big towns, the immediate future for the market appears bullish but in some regions having a large excess of unsold homes there will be big price drops.