Low Cost Dwellings´Boom

7/02/2014 – El Mundo

The utopian vision of houses for less than €100.000 became a reality due to the long price adjustment on the market. As portal Globaliza.com informs, up to 30.8% of property advertisements concern dwellings at five-digit price, ten times more than before the recession.

During 2007 peak, (…) only 2.9% of the houses published on the website cost less than €100.000. Fernando Pinillos from the real estate portal claims that “some of the cheaper dwellings´prices have declined by 50% since first published”.

As Lazaro Cubero from Tecnocasa Group informs, “On average 64% of our transactions involve houses under six digits, also those carried out in large cities, for example in Zaragoza (76% of them), Sevilla (68%), Madrid (63%) and in Barcelona (32%)”.

In Madrid, according to data from Globaliza.com, 13.9% of the dwellings are below €100.000, whereas in 2007 their number represented a mere 0.09%. (…).

In the south of the capital, in such districts as Puente de Vallecas, Vicálvaro and Villaverde, almost half of the houses is low cost, while in the central areas their number hardly reaches 1% (in Chamartín, Salamanca, Chamberí and Moncloa-Aravaca) and 1.4% (in Hortaleza). “The most frequent flat has got 3 rooms and covers 64 square meters”. (…). Most of them need complex or partial renovation.

Cubero gives examples of houses which cheapened by about €45.000 in 3 months only and points out the districts with prices starting at €28.000.

(…) “In cities like Zaragoza, Valencia, Malaga and Sevilla mean property price is already lower than €100.000”.

Original article: El Mundo (Jorge Salido Cobo)

Translation: AURA REE