8 December 2009
Property in Spain is still 27% overvalued, despite the fact that prices have plummeted across the country in the last two years, according to a report compiled by Aguirre Newman.
The property consultancy says that Spain home prices need to fall further, primarily due to the glut of unsold Spanish properties on the market.
The company projects that there areas many as 1.5m empty residential properties in Spain at the moment, the highest estimation to-date. This figure includes resale houses and apartments in Spain, as well as off-plan units nearing completion.
Aguirre Newman claims that demand for property in Spain currently stands at around 300,000 Spanish homes each year. If accurate, this means that it would take approximately five years to digest the existing oversupply of properties in Spain.
Marc Da-Silva, editor of HomesOverseas.co.uk, says:
“Despite some industry talk that the Spanish housing market is nearing the bottom of the cyclical downturn, the reality is that Spain property prices will almost certainly fall further in 2010.
“Close to 20% of Spain’s housing stock currently lies empty, which is extremely high compared to other European countries, and yet further new homes are still coming onto the market.
“Given that unemployment is rising and the fact that average property prices still remain out of reach for many Spaniards, supports the claim that residential prices need to fall further."
See Also: Marc Da-Silva (269), Spain (67)
Related News
