Spanish Property Prices – No Signs of Slowdown

There is still no real sign of the expected slowdown in the Spanish property market, at least as far as the official figures provided by the Spanish government are concerned. Figures from the Spanish ministry of housing for the 2nd quarter of 2005 show that property prices increased by 4% in the quarter, which on an annualised basis translates into an increase of 13.9%, down only slightly from the 15.7% in the 1st quarter of the year. Indeed in its most recent bulletin the Bank of Spain has argued that it is premature to talk of a sustained trend towards lower levels of Spanish property price increases, despite the fall in the annualised rate of property inflation from 15.7% in the 1st quarter to 13.9% in the 2nd.