Spain property prices rise in some regions
Spanish home prices are increasing in some regions where there is no longer an oversupply of properties on the market, according to Caixa Catalunya.
The bank highlights areas such as Cantabria, the Basque Country (0.5%), Asturias (0.8%), and La Rioja (0.9%) as having a healthy housing market due to the fact that properties on each respective market represents below 1% of the local housing stock.
Despite the fact that Spain property prices have continued to plummet in the past year, Caixa Catalunya claims that home prices on some Spain housing development have increased by an annual rate of as much as 5% in areas where there is no glut of Spanish homes.
“House and land prices have touched bottom in some cases. The adjustment is almost over, if not already,” said Eduard Mendiluce, head of Caixa Catalunya’s property division Procam. “We are increasing our rate of sales and we are sure that others are doing so too.”
However, given that Caixa Catalunya has a rather poor debt ratio and plenty of Spanish housing stock on its books, it is in its interests to talk up the Spanish property market, and as a consequence, their comments should be taken with a pinch of salt.