Spain's National Statistics Institute Q2 report indicates that the Spanish home prices have increased since the economic meltdown. The increase of housing prices have strengthened the recovery. But report also shows that the gradual improvement is limited to Spain's popular areas.
Bloomberg reports that the Spanish house prices has a significant increase of 4.2% in Q2 report released by the institute. The figures are considered to be the largest increase based on the INE records. "These figures show the gradual recovery of the Spanish property market, which is necessary for the definitive reactivation of the real economy," Bankinter SA analyst Belen San Jose said.
It is also stated in the report that the Spanish construction industry is also recovering from the 2008 economic meltdown. It has been noted how the country has been affected by the crisis and has been left "with a surplus of about 1.4 million homes after years of debt-fueled growth." Since the construction industry is slowly recuperating, jobs have been increasingly generated too. Jobs in this industry has fell off to 40% when the economy went unstable in 2007.
In a separate report of Property Wire, it mentions that this is the fastest pace in recovering its economy so far. The Q2 report that has been released shows that it is up from 2.65% in the previous quarter, according to the data from the Property Registrars which also shows the quarter on quarter price increased by 2.8%.
However, it has also been mentioned that this positive property market activities vary from regions. Report says that it is only limited to the most popular areas in the country where housings are in demand. These famous areas are the Balearics, the Canaries, Catalonia, Madrid, and the Valencian Community. Prices are also reflected in the report in these areas that are sought by home buyers.
In addition, reports point out that both sellers and home buyers are "adjusting their expectations accordingly. In more and more areas buyers who have been adopting a wait and see attitude whilst prices fell are now entering the market."
The prices are not expected to surge though reports imply that Spain is on its way to recovery. This information is "supported by factors such as low interest rates, improved housing affordability, better mortgage conditions, and a sustained foreign demand for property in Spain."
