End of market ‘adjustment’ in sight, says Bank of Spain

The landmark Bank of Spain building in Madrid

During a recent conference organised by Spain’s Asociación para el Progreso de la Dirección – Association for Management Progress – the Director of the Bank of Spain’s Research Services, José Luis Malo de Molina, told the assembled financial directors that: “The adjustment in the property market has been long and intense, but the good news is that it is now coming to an end and the property market is now in a period of stabilisation…”

Basing his speech on new data from the country’s National Statistics Institute (INE), Malo de Molina told the delegates that after a cumulative decrease of 43 per cent since prices were at their peak, they have now been on the rise during the last two quarters.

The bank executive also highlighted the fact that the purchase of Spanish properties by non-residents was also on the increase, “a significant factor given that they were the first to depart the Spanish real estate market as soon as they saw the approaching signs of a housing bubble.”