Monday, January 17

Bank of Spain: real estate is already overvalued

The Spanish real estate sector is slightly overvalued after recent price increases. But it remains far from the levels seen before the housing bubble burst nearly 15 years ago, plunging the country’s banking system into a financial crisis, a Bank of Spain official said on Thursday.

After being affected by the restrictions introduced in March 2020 to combat the Covid-19 pandemic, property prices in Spain have begun to recover and home sales have also skyrocketed.

Earlier this month, the National Institute of Statistics (INE) said that its housing price index (IPV) rose 4.2 percent in the third quarter, the largest increase since the same quarter of 2019, after a 3.3 percent rise in the second quarter.

“At the moment what we currently have is a slight overvaluation. It is small, and of course it is far from the levels we had before the global financial crisis,” Ángel Estrada, general director of financial stability of the Bank, said in a briefing. from Spain. ● An article by Jesús Aguado

Leave a Reply

Your email address will not be published. Required fields are marked *