Monday, July 6, 2009

Spanish Property Valuations

Figures are out from the Spanish office of statistics that Spanish property prices have, on average, fallen 7.6% in the past year, and new-build propertuies have only fallen 2% !

Why do they do this ? What is the point ?

Anyone working in the Spanish market, or indeed any owners or prospective purchasers, know full well that prices/valuations are down somewhere between 20 and 30%, if not more

Empty new-builds - well they can't give them away - discounts of 40-50% seem commonplace

The article I read mentioned the "black money" (cash) part of the purchase, that still goes on and is unobserved by the Notary, which can distort the figures

This means that the declared prices that are recorded are actually lower than the actual selling price. But this has always happened so it is all relative

Although perhaps the cash element is sneaking back into the equation as people try to save taxes, and who can blame them in the present climate, to be fair.


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