Newly built housing in Spain will not fall more in price

Newly built housing in Spain will not fall more in price
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By h.b. - Oct 10, 2008 - 6:38 AM

Guillermo Chicote - Photo EFE

The prediction comes from the President of the Association of Promoters and Constructors in Spain.

The price of newly built housing in Spain will not fall any more than it has, according to the President of the Association of Promoters and Constructors in Spain, (APCE), Guillermo Chicote.
Chicote is about to leave the post, but warned that people should not expect to see 30% or 40% falls in price, saying that the property would fall into the hands of the banks before that. He claimed that prices had now fallen as much as they are going to, down 15% inland and 20% on the coast.

He said there were some 800,000 new homes currently for sale across the country, with between 200,000 and 300,000 still under construction, and noted that sales had fallen by 60% in number since the start of the crisis.

He said any recovery in the sector would be slow, unless specific solutions were found and he called on the Government to act, suggesting they subsidise part of the Euribor interest rate so that consumers could be offered a fixed rate. Otherwise he said the current situation could last three or four years more. He said that recent low interest rates had led to habits which could not continue.

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