Tuesday, April 12, 2011

TINSA April 2011

Unsurprisingly the TINSA index of the Spanish property market indicates that prices are continuing to fall.

Prices have now been falling for continually and consistently for over 3 years and most analysts expect prices to continue to fall throughout 2011.

TINSA suggest that prices are falling at an interannual rate of -3.7% overall:

The breakdown is as follows:

Provincial Capitals and large cities -4.6%
Metropolitan areas -5.3%
Mediterranean coast -5.7
Balearics and Canaries - 3.0%
Other municipalities -1.1%

TINSA estimate that the biggest drop in property values continues to be the coastal areas.

With record unemployment and a swath of properties swamping the markets, there is little to be optimistic about. The conditions that have previously pushed down prices are still acting and will continue to act for the medium term.

Repossessions are at an all time high and interest rates are set to go up. Most mortgages in Spain are based on the Euribor and as their payments increase more people will default on their mortgages forcing the banks to acquire yet more properties.

Many of the properties that have been repossessed by the banks are optimistically priced to say the least, and if the banks are going to move them off their books their will need to be reduced in price. This can only mean more downward pressure on property prices.

The advice to people looking to buy a property in Spain is to wait and consider renting.


Tuesday, April 5, 2011

TINSA March 2011

TINSA property valuations continue to estimate that the Spanish Property Market is in decline. They estimate that Spanish residential property has declined by 4.5%, with the Mediterranean coast showing the steepest price drop at 6.7%

The latest TINSA report can be downloaded here

TINSA market can be broken down into different areas:

  • Balearic Islands / Canary Islands -0.8%
  • Large Cities / Provincial capitals -5.2%
  • Metropolitan areas -5.4%
  • Mediterranean Coast -6.7%
  • Everything else ( Inland / Rural properties) -3.3%

The index indicates that the Canaries and Balearic's Islands are close to the bottom of the curve.

Some analysts have been proclaiming that the price decline has already hit the bottom, however the conditions that have pushed prices downward continue to act, and Spain's wider economic woes continue.

Those looking to buy on the Mediterranean coast should continue to wait or consider renting property until the market hits the bottom.

Those buyers looking for a property in Mallorca, Ibiza, Menorca, should probably start bargain hunting.