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Tinsa’s, the Appraisal Company, House Price Index depicted an 8 percent downfall during the last week. The Government is about to publish the Housing Price Index for 2011 which, has stark similarities in term of decline to the tune of 6.8 percent for 2011.

Both the Indexes show almost similar pattern wherein there is double digit fall by the end of December 2010 and accelerating throughout 2011.

Post inflation amendments to the figures, it is seen that the house prices in Spain dipped 9.6 percent officially in 2011. So the ones whose income was not affected (indefinite labor contracts with a major Spaniards) during the last year actually witnessed that the actual cost of purchasing a house fell by 10 percent or more if, 50 percent rebate on VAT on new houses is also taken into account.

The house prices fell mostly in Aragon (-10.4 percent), Madrid (-8.2 percent), Andalucia (-7.8 percent) and Catalonia (-7.7 percent) with the Basque Region (-3.1 percent), Asturias (-2.7 percent) and Extremadura (-2.1 percent) dipping the least.

According to the head of research at the website Idealista.com, Fernando Encinar, “there is almost no motive to expect any changes in 2012”.

Needless to say all these official figures will have to be accepted on the face value without any condition. So if, the official index depicted a decline of 6.8 percent then, in actual life it would have been in the range of 10 percent to 15 percent.

Yet to be promulgated and only thing that is unseen for 2011 would be the official House Price Index published by the National Statistics Institute due to be out in a month or two and widely referred by the international press. As compared to its previous form it would be keeping a low profile of the price fall more than any other statistics. This goes on very well to put across a point why international press publishes that Spanish real estate market have not dipped much.

More information and photos can be found at http://news.kyero.com/

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