Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Friday, April 11, 2008

Spanish property inflation rates

The quarterly figures released by the Spanish Ministry of Housing (Ministerio de Vivienda) is the most commonly used housing market statistics for property prices in Spain.

The figures for the third quarter (Q3) in 2007 shows that average national Spanish property prices rose by 0.3%, which translates itself into an annual increase of 5.3%. This is a deceleration compared to second quarter (Q2), when prices rose by 1.5% for that quarter, and 5.8% over 12 months. Average Spanish property inflation rates have been progressively falling after peaking 18.5% in 2003, to 9.8% in 2006, to 5.3% in 2007.

The deceleration in the rate of house price inflation and a drop in demand in certain places don’t mean the end of decade long property boom. The fall in the inflation rates do not pertain to the country as a whole. Murcia region's property market is expanding at a considerable pace and is likely to keep growing as Madrid saw rates drop to two per cent, but Murcia had 10.7% annualised price growth.

This is the forecast by the experts for 2008

BBVA (Spanish bank) : prices +1.4% in 2008 and -1.9% in 2009
Deutsche Bank: prices -2% to -8% in 2008
Natixis (French bank) : prices +2% to +3% in 2008
Crédit Agricole (French bank) : -10%

This comes after the recent survey by Yorkshire Bank which revealed that Spain is one of the most popular foreign destinations among overseas property investors from the UK. This shows after all the negative publicity in the media; Spain is the perennial favourite for British buyers.

Tuesday, March 4, 2008

Spain GDP annual + 3.5%, fourth quarter + 0.8%

Year ending data from the National Statistics Institute (INE) showed that Spanish economic growth slowed in the fourth quarter of the year. As stats revealed by INE states that the figures on economic growth in 2007 showed a notable increase in GDP at 3.8%.

Eurostat confirmed that The Spanish economy grew more than the economies of other European countries. Spanish GDP grew at 3.8% annual rate and at a 0.7% quarterly rate in the third quarter.

GDP in fourth quarter grew at an annual rate of 3.5% and at a quarterly rate of 0.8 percent .The surprising feature of the data was that on a quarter-on-quarter basis growth accelerated to 0.8 percent in the fourth quarter of the year from 0.7 percent in the third quarter.

The INE said slowdown in the construction sector is the reason for 2.9% in the fourth quarter from 3.8% in the third quarter. Spain's external trade position improved marginally.0.4 percentage point negative contribution from GDP growth in the fourth quarter but when compared with a 0.7 percentage point contribution in the third quarter it is a improvement.

Economists feel that the current cooling of the economy was only temporary and Spain has an economic growth potential of closer to 3.5 percent rather than 3.0 percent.