Spanish property market reports increased sales as unemployment falls

After years of stagnation, price falls and growing economic problems, two pieces of good news finally came out of Spain this week. According to new figures from the National Statistics Institute, there was a large rise in property sales in August 2010 compared to the corresponding period in 2009. And, in addition, unemployment fell in the country for the first time since 2008.

Property sales ‘booming’

According to the figures, property sales increased by a massive 29.6 per cent in August 2010 compared to the same period in 2009. Analysts believe that this may be due to canny investors snapping up property bargains from an increased number of ‘distressed properties’ – houses repossessed by banks – coming to the market.

Victor Sague, sales and marketing director of Taylor Wimpey Espana, said: “Confidence in the halls of government and the Bank of Spain is being echoed by many British buyers who are aware that the market for prime property has bottomed out.

"Although there is still a degree of caution in a purchase of such a scale, those who have sat on the fence for the last couple of years are now keen to push ahead with their home buys in order to make the most of the reduced prices."

Unemployment falls for first time in three years

This encouraging news came as some promising unemployment figures were also published. According to the National Statistics Institute, unemployment in Spain fell for the first time in three years during the third quarter of the year. The rate – the highest in the EU – fell to under 20 per cent as a result of new jobs in the services sector.