House price confusion in Spain 'keeping investors away'

Confusion surrounding house prices in Spain is keeping a number of investors away from the market, it has been claimed.

The Wall Street Journal reports that the country is experiencing problems determining just how much empty properties are now worth, with the government and appraisal companies understating the actual fall in home values.

According to recent figures from the Ministry of Public Works, the price per square meter of homes for sale in Spain has dropped 11 per cent since the market's 2007 peak.

However, data from Tinsa shows an 18 per cent drop over the same period. Meanwhile, many smaller firms that are helping banks sell thousands of property assets said average actual sale prices have fallen between 20 per cent and 30 per cent.

"The discrepancies are owed, in part, to a quirk in how some Spanish home-price data are calculated. The data are based not on actual sales prices, but rather on appraisals by private companies, which in a slow market are heavily reliant on asking prices," the news provider said.

Like this? Then share with your friends and colleagues!