The housing prices in Spain could fall by 75% by 2050, according to the BIS
| Date: August 10, 2010 | Source: Europa Press |
| Category: Trivia | |
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Loading ... The housing prices in Spain could fall by 75% by the contractionary effect on demand of an aging population, just as the "baby boom" caused an increase in its value when these generations reach adulthood and began to buy homes.
This is one of the main conclusions drawn from a report by the Bank for International Settlements (BIS), which explains that, according to demographic projections for the next 40 years, only Portugal would experience even more severe impact on housing prices.
With decreases in the vicinity of 75% would fall also countries like Greece, Germany or Italy. The impact would be lower in the English-speaking countries, such as Ireland, Canada or the U.S., where the cut would not exceed 50%.
"Estimates suggest that the real price of houses will face a substantial negative pressure during the next 40 years because of aging," the report said.
However, the Bank for International emphasized that these estimated price declines are not specific forecasts, so that house prices would grow substantially in spite of population pressures, while also linked to social variables economical.
In this regard, the report notes that between 1970 and 2009 prices rose in Spain more than 300% in a scenario of demographic impact neutral, while in Finland increased by about twice the drop expected.
