Spain property sales to improve
19.04.2009
The Spanish property market will bounce back into life this year, with improved sales levels, according to a professor of economics at the University of Barcelona.
Gonzalo Bernardos believes that current low interest rates, property prices at 2003 levels, an increase in mortgage lending, greater property investment activity and growing demand for rental accommodation, will all spur the market.
“There is a fundamental variable. People buy homes in response to mortgage costs, which have gone from rates of 6.25% in September to 3.25% today. We are talking, in general terms, of a fall in mortgage repayments of 40%,” Bernardos said.
Although Bernardos expects property sales to increase, he does not think that greater demand for property in Spain will see prices bounce back straight away, and projects a bottoming out in “most places by the end of 2010,” he said.
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