The Economist Global House Price Index: Spanish Prices Could Still Decline

22 April 2015
22 April 2015, Comments 0
economist house prices

The UK magazine the Economist tracks the housing market in many countries. Spanish Property prices have lost 39% of their value since the peak of Q3 2007, and are now rising in 19 of 26 countries tracked by the magazine at a median pace of 5.2% a year, but are still falling in Spain at -0.2% on a year earlier.

One of the reason is that Spanish property prices seem to be overvalued 8% against the average Spanish income per person, 18% when compared to rental prices. Furthermore, the population is still leaving around 200 k people emigrated in 2014 to find a job overseas, whereas there used to be an additional 800k new people in Spain before the crisis. But they might come back and this temporary emigration could be good for the country as they have learnt to work in a different way.

The UK magazine the Economist tracks the housing market in many countries. Spanish Property prices have lost 39% of their value since the peak of Q3 2007, and are now rising in 19 of 26 countries tracked by the magazine at a median pace of 5.2% a year, but are still falling in Spain at -0.2% on a year earlier.

One of the reason is that Spanish property prices seem to be overvalued 8% against the average Spanish income per person, 18% when compared to rental prices. Furthermore, the population is still leaving around 200 k people emigrated in 2014 to find a job overseas, whereas there used to be an additional 800k new people in Spain before the crisis. But they might come back and this temporary emigration could be good for the country as they have learnt to work in a different way.

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