After the bursting of the housing bubble and during the course of the crisis, the price of housing has continued to go down in Spain. The province of Málaga has been no exception and from its glorious years, properties have lost on average 27% of their value.
According to the statistics of housing prices provided by the Ministry of Public Works, in the second quarter of 2012 the average value per square meter in the province was 1660.4 euros, making an apartment of about 70 meters cost about 116,000 euros. That amount is 9% lower than it was just a year ago and 1.6% less than in the first three months of 2012.
The figures that the Ministry of Development has, which started to be recorded at the beginning of 2005, say that during the first half of 2008 was the period in which the price par square meter was the highest in the province and that was when properties came to cost 2.348 euros per square meter. This meant, paying more than 164,000 euros for a property of 70 meters square.
Since then, the decline has been five years in a row and properties have lost 27% of their value. In their latest report, regarding local housing markets, the company Tinsa, gives figures that are even more dramatic and consider the depreciation of being around 39.1% since 2007.
Despite the fact that industry professionals are saying since a couple of years altready that prices have bottomed out, companies like credit rating agency Fitch desagree, as they believe that property prices will continue to drop until 2014.
Among the reasons for this decline, is the need on behalf of the banks to dispose the stock, as they still have a great number of properties from foreclosure coming from businesses and individuals who are facing debts. The loss of purchasing power and the difficulty in accessing mortgages among prospective buyers are also some of the causes of the crash.
Despite the high percentages, Malaga province remains the most expensive to buy a property in Andalucía, where the average per square meter is at 1344 euros, well below the national average, which is of 1,606 euros. Moreover, it is still located between the ten provinces with the highest real estate prices in Spain.
Source:
ElMundo.es
