Spain: It’s not all doom and gloom

Despite claims to the contrary, Spain has been a strong performer in recent months, claims Knight Frank…

Though much maligned in the press, Data released by the Bank of Spain indicates that residential property prices rose by almost 5% during 2007, which is a far cry from the ‘crash’ reports that have been clogging up the media for the last six months.

Some areas of the country did see extremely low rates of house price inflation over the course of the year; for example,  La Rioja and Madrid both saw rates of HPI below 2%.  However, this contrasted sharply with good results elsewhere, with 8.1% growth seen in Murcia, and the 7.7% in Asturias.

The Balearics also saw relatively strong growth with the annual rate to Q4 2007 just under 7%.