August 2007

Spanish Property Prices Fastest-Rising in Europe

Halifax figures show the average cost of a home in Spain doubled between 2001 and 2006.

The latest figures from the Halifax showing property price trends across Europe make great reading if you bought a property in Spain before 2001. Across the Eurozone as a whole, property prices rose 40% between 2001 and the end of 2006, with Austria and Spain's sunny neighbour, Portugal, showing weakest growth (6% and 7% respectively).

Germany, where people prefer to rent rather than own, actually saw a 5% fall in property prices. By contrast, prices in the UK rose by 90%, and in Spain they doubled. Despite talk of a slowdown in the market approaching, prices rose most steeply in the last two years.

There are clear signs now from Spain that both price growth and the property market are shrinking; fewer buyers are willing to pay the high prices asked. However, it's not the most expensive place to buy in Europe - and neither, you might be surprised to learn, is the UK. That honour goes to Ireland, where the average house price hit £209,300 (sterling) by the end of 2006.

Source: www.halifax

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