Metrovacesa Spanish property market and other economic forecasts 2005

Article Date : 30 April 2005
News Section: Spain

Metrovacesa, one of Spain's largest developers, has released forecasts for the Spanish real estate sector in 2005. The report envisages that the number of property transactions will increase to 950,000 from 868,000 in 2004 but that property price inflation will drop to between 5% and 15%, compared to 17.4% in 2004.

Spanish property market forecasts 2004 - 2005 by Metrovacesa
	2004	2005 forecast
GDP REAL GROWTH
Spain	2.7%	2.7%
Euro Zone	1.8%	1.6%
OECD	3.6%	2.9%
EMPLOYMENT IN SPAIN
Increase in number of jobs	362,400	245,300
Unemployment rate	10.5%	10%
NEW HOUSEHOLD FORMATION	244,800	273,400
INTEREST RATES IN SPAIN
Nominal annual effective rate	3.36%	3.40%
Real interest rates	0.16%	0.40%
PROPERTY MARKET FIGURES
Housing starts	687,100	650,000
New properties completed	556,000	575,000
% growth in housing stock	2.4%	2.5%
Number of property appraisals	868,000	950,000
Property price increase	17.4%	5% - 15%