Spanish property prices end the year lower than they started!
Despite starting the year well with property prices rising in all Spanish regions, 2007 has ended in December with prices 0.28% below where they started in January. According to Facilisimo.com, the region of La Rioja has been the worst affected, dropping 11.08% to 2159€/m2 , Madrid and Barcelona haven't avoided the falls dropping 2.38% to 3479€/m2 and 3.05% to 3777€/m2 respectively.
The region of Andalucia has fared slightly better closing the year 2.95% above where it started in January: 2,070€/m2 - 01.01.07 to 2,130€ /m2 - 01.01.08. However prices have dropped 2.34% since 01.08.07. Marbella, the focal point for the Costa del Sol hasn't fared too badly either with prices overall higher than the beginning of the year (2.45%) but dropping off 2% since it's highpoint of 3,197€/m2 at the end of July down to 3,133€/m2.
The results of a survey by Facilismo say that 68.41% of Spanish citizens believe the current goverment to be at fault. 62.09% believe that prices won't drop anymore and 66.28% say they would still buy instead of renting. However certain analysts think that the current redressing of prices is a necessary market correction. If prices continue to drop up to a further 10% in 2008, they will be back at the level of 2005.