TINSA February 2011

The Spanish property price valuation index as estimated by TINSA has dropped by an average inter-annual rate of -5%

Download the latest TINSA property price index

The interannual rate of change was steadily decreasing toward the end of 2010, but the downward drive in prices seems to be showing steeper falls once again.

The biggest drops in inter annual valutaion were seen in large cities (-6.5%) and the Meditereaean properties (-8.4%)

This indicates that confidence in property prices across Spain is falling, and that prices are yet to hit the bottom.

The estimated price drops may be due to the banks revising the prcies of their property portfolios that they have respossed from people who have been unable to keep up their mortgage payments.

An increase in the unemployment figures published last month is alos likely to be a contributing factor as more and more people are forced to hand the keys to their properties back to the banks.

Bank Respossesions act as a negaitive feedback into the system, forcing prices down further.

Investors looking to purchase at the bottom of the curv would be best advised to bide their time.

The general message to potential buyers is to continue waiting as property prices continue downwards.

Those looking to move to Spain would be best advised to rent.