Will slowdown in Spanish economy affect property market?

As the Spanish national statistics institute announced yesterday that the country's economic growth stalled in the second quarter of the year, there are indications that this will have a knock-on effect to the property sector.

Figures showed that gross domestic product increased 0.7 per cent year-on-year between April and June, while it registered a quarterly rise of just 0.2 per cent.

In an interview with Bloomberg, Estefania Ponte, head of research at Cortal Consors, made some observations about the Spanish real estate industry.

She commented: "The international context is very complicated and the Spanish construction sector is undergoing a clean-up."

The news provider pointed out that the number of property sales in the nation has been steadily falling for the past four months, while an anticipated rise in base interest rates would hit homeowners hard.

In addition, the most recent figures issued in the General Spanish Real Estate Market Index from Tinsa revealed that, overall, house prices fell by 6.4 per cent year-on-year in July.
 

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