Cost of new housing falls in Spain but the Canary Islands is less affected

Canary Islands Real Estate, Fuerteventura Tenerife, Lanzarote and Gran Canaria property better than mainland Spain.

The cost of new housing fell 2% in the first quarter of the year compared with the same period in 2008, the first annual decrease since the property market bubble started to deflate in mid-2007.

According to data published today by the National Institute of Statistics (INE), the price of housing as a whole fell by 7.6% between January and March, the biggest decrease since prices started to fall in the second quarter of 2008. The main reason for the fall is still the slump in prices in the second-hand-property market, brought on by owners selling just to clear bank mortgage commitments, but it is the first time that new housing in Spain has also seen a decrease.

House prices fell in all the autonomous communities in the first quarter, with the biggest drops being registered in Catalunya (13.7%), Comunidad de Madrid (11.2%), Basque Country(10.8%), Navarra (10.1%), Aragón (9.7%), Balearic Islands (8.1%) and La Rioja (8%).

Below national average drops were registered in Cantabria (7.2%), Comunidad Valenciana (5.2%), Canary Islands (4.3%), Andalucía (3.9%), Castilla and León (3.3%), Castilla-La Mancha (2.5%), Extremadura (2.2%), Asturias (1.8%), Murcia (1.6%) and Galicia (0.5%).

For more information:
Calle Guirre, No1 Oasis Tamarindo- Local No17, Corralejo Fuerteventura Canary islands Spain 0034 928 535044 www.goldacre-estates.com

Real Estate is driven down by media and lenders opinion

The real prospect of a housing and Real Estate crash has been created by doom-mongers and has seeped into the minds of home owners and potential buyers following report after report from British leading lenders. Is the Canary Islands the best place for your money.

The Sunday Express one of the UK leading national newspapers, May 25th, 2008 issue states that since the credit crunch began to bite, barely a day has gone by without one report or another predicting Armageddon for house prices. However, although the economy is undoubtedly suffering from a dramatic increase in fuel and food bills and a general lack of confidence, the fact is that our homes are worth significantly more than they were this time last year!

An exclusive Sunday Express Poll of Polls shows, on average, house prices are up 3.2 per cent over the last twelve months.

The prospect of a housing crash has been created by doom-mongers and has seeped into the minds of home owners and potential buyers following report after report from the nation’s leading lenders. It is, of course, understandable that this slight paranoia influences our minds and the decisions we make or do not make. Things like the holiday home that has been put on the back burner due to the scaremongers misguided ideas that the housing markets worldwide are in crisis.

John Goldacre from GoldAcre Estates said that opportunities are always available in any market that is under pressure and of course regarding lack of opportunities nothing could be further from the truth in Fuerteventura where property prices have always been well priced compared to its Canary Island neighbours such as Tenerife, Lanzarote and Gran Canaria .

The Sunday Express article reveals that actually over the past year, only three regions in the UK have experienced price falls, while nine have remained buoyant! While the UK is not enjoying the 10 per cent plus leaps in value seen over the past decade, experts believe the market has stabalised with the country returning to more realistic levels of growth. In fact, over the last year, the vast majority of the country has experienced strong growth, adding thousands of pounds to the value of their homes. As you would expect, London remains the strongest performer with a 9.1 per cent leap.

The Sunday Express article stated, we are not suffering from a housing crisis, all we are suffering from is a crisis of confidence which has been brought about by the radical and rather drama related ideas created by alarmists.

GoldAcre Estates claims, in Fuerteventura the market is still very good. Prices have levelled which you find in all the housing market trends with any sort of slow down which of course have therefore become extremely attractive for investment and future growth. Now is the time to plan your future and be a part of the development and opportunities Fuerteventura has to offer because as all markets that flatten or fall history has proven that there is only one way you go, which is upwards so now is the time to buy your perfect home in the sun.



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