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The Great
Property Crash of 2006
In the late summer of 2006, much was made of "The
Great Property Crash". The value of properties on the
Costa del Sol was tumbling, the bubble had burst and all was doom
and gloom. But did it actually happen?
The first three columns in
the table below show the price of housing in euro per built square
metre (including garage, store room and IVA). Source:
Salvago Inmobiliaria. The
furore was caused when the second and third columns were compared to
give the fourth, which shows the price change between the first
quarter of 2006 and the second quarter of 2006. As you
can see, that column makes pretty grim reading.
But can you deduce anything
at all by looking at the change of the value of property over a
three month period? Property is a long term investment
and most professionals in the field would argue that even examining
the change of the value of property over a period of one year is
pretty pointless. For comparison's sake though, I've
done just that. I've included column one and compared it
to column three to give column five. I've resisted the
temptation to include the second quarter 1996 figures and create a
ten year comparison, mainly because percentages in the
thousands range look both confusing and very silly.
My advice would be to do
your own research and make up your own mind about "The Great
Property Crash of 2006". I'd also suggest you watch the
newspapers when the third quarter 2006 figures are released.
One wonders what the Doom and Gloom Merchants will be ranting about
that day.
| |
Quarter 2 2005 |
Quarter
1 2006 |
Quarter 2 2006 |
Variation - three months |
Variation - one year |
| |
|
|
|
|
|
| Malaga |
2,609 |
3,074 |
2,912 |
-5.2% |
+11.6% |
| |
|
|
|
|
|
| Torremolinos |
2,290 |
2,611 |
2,657 |
+1.7% |
+16.0% |
| Benalmadena |
2,315 |
2,761 |
2,681 |
-2.9% |
+15.8% |
| Fuengirola |
2,097 |
2,455 |
2,495 |
+1.6% |
+18.9% |
| Mijas |
2,085 |
2,501 |
2,490 |
-0.4% |
+19.4% |
| Marbella |
2,342 |
2,780 |
2,862 |
+2.9% |
+22.2% |
| Estepona |
1,965 |
2,435 |
2,355 |
-3.2% |
+19.8% |
| Manilva |
1,805 |
2,231 |
2,154 |
-3.4% |
+19.3% |
| West Coast |
2,211 |
2,589 |
2,581 |
-0.3% |
+16.7% |
| |
|
|
|
|
|
| Rincon de la Victoria |
2,297 |
2,685 |
2,648 |
-1.3% |
+15.2% |
| Velez-Malaga |
1,953 |
2,319 |
2,410 |
+3.9% |
+23.4% |
| East Coast |
2,220 |
2,578 |
2,579 |
no change |
+16.1% |
| |
|
|
|
|
|
| Antequera |
1,619 |
1,931 |
2,010 |
+4.0% |
+24.1% |
| Campillos |
1,187 |
1,478 |
1,495 |
+1.1% |
+25.9% |
| Cartama |
1,865 |
2,323 |
2,301 |
-0.9% |
+23.3% |
| Pizarra |
1,236 |
1,599 |
1,599 |
no change |
+29.3% |
| Alora |
1,283 |
1,562 |
1,585 |
+1.4% |
+23.5% |
| Coin |
1,198 |
1,528 |
1,530 |
+0.1% |
+27.7% |
| Ronda |
1,896 |
2,140 |
2,205 |
+3.0% |
+16.3% |
| Alhaurin de la Torre |
2,199 |
2,484 |
2,505 |
+0.8% |
+13.9% |
| Alhaurin El Grande |
1,876 |
2,156 |
2,195 |
+1.8% |
+17.0% |
| Archidona |
1,203 |
1,510 |
1,560 |
+3.3% |
+29.6% |
| Inland |
1,756 |
2,086 |
2,112 |
+1.2% |
+20.2% |
| |
|
|
|
|
|
| Malaga Province Average |
2,262 |
2,620 |
2,574 |
-1.7% |
+13.7% |
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