House prices in Spain will stabilize during 2011

According to the latest forecast reports for 2011, the price decline which started mid 2007 will deaccelerate this fall and there will be a clear trend towards stabilization, ending the year with insignificant negative growth figueres .

Analyzing prices in the propertysector since summer 2007, we observe, that the decrease in the cost of housing in Spain has been stabilizing slowly:

• 2008 7,62%
• 2009 6,06%
• 2010 4,58%

As can be seen, the year 2010 ended  with a drop of 4.58%, the lowest of all. 

It is expected, that this deaccelaration continues and by 2011 we will see a  price erosion less than 3%, so the following year, 2012, is expected to become the year of complete stagnation of property prices in Spain. 

Keep in mind that today, as an average, a property costs the same as in mid 2004; the price per square meter of properties in Spain has fallen from 2.521€ (historic maximum) in July 2007  to 2.040 €/ sqm. in early 2011. This represents a decrease close to 19%, or in other words, a saving of 33.670€ for an average appartment of 70 sqm.

Above figueres are average for Spain; price erosion has been less in Catalunya compared to the rest of Spain. Furthermore, price decline has been higher for appartments than for houses.