The value of the housing stock in Spain (now exceeding 26 million units) has fallen by around 360,000 million euros in 2010 compared to their peak, recorded in 2008, according to a recent study by the BBVA Foundation and the Valencian Institute of Economic Investigations (Ivie). The study attributed the decline mainly to the falling prices.
Cinco Dias reported that in 2010, Spain’s housing stock was worth 6.8% less than it was four years ago, when it reached its maximum at the outset of the housing crisis. In 2008, existing homes in Spain were worth 5.3 billion euros, while two years later they were valued at 4.9 billion.
This study shows the rapid evolution of the housing market in Spain. In the boom years, house prices rose by an average of 12.8% annually, while from 2008 to 2010 they decreased by 9.2%. The research adds that while in 2008 an economic effort of 9.9 years of salary would be required by Spanish workers to buy a home in Spain, in 2010 it took 9.7 years. These ratios are far from the 5.8 years of work which were needed to buy a home in the pre-euro era of 2000.
Catalonia and Madrid remain the two regions which have accumulated the highest percentages of housing ‘stock’, whilst experiencing a slight reduction in total. Andalusia is in third place.
Between 1990 and 2007 house prices grew at a faster pace in the Mediterranean provinces (an annual average increase of 9% versus 8.1% on average in the rest of Spain), but fell with less force at the onset of the crisis (down 2% on average compared to the 3.4% decrease in prices in the rest of Spain).
Article source: Kyero.com