Spanish property prices to fall by a further 50%
As Spain’s economic troubles continue the nation’s house market looks set to take a further kicking. Experts are now forecasting that house prices in the embattled country could fall by a further 50% and may not recover for 15 years.
According to the experts the worst affected region was the Costa del Sol where the total value of property’s in the area fell by a staggering 75%.
“The market is broken, in places like Castellon, near Valencia, where over development was mad, banks are not financing anything and there is a high probability that these properties will never be sold. Instead they will be knocked down” said Fernanado Rodriguez de Acuna, the vice-president of Spanish economic consultancy RR de Acuna & Associates.
Up to 800,000 used homes are thought to currently be on the Spanish property market whilst 300,000 have been foreclosed by banks due to the owner’s inability to pay their rent or mortgages. The situation has become so bad in some areas that the number of homelessness has soared. Another 150,000 properties are currently in foreclosure proceedings.
Highlighting just how broken Spain’s housing market has become is the fact that despite the huge number of homes unable to sell there is 250,000 new homes still under construction and 700,000 completed properties that have not even put on the market, instead they stand empty as one of Spain’s increasing number of ghost towns.
For wannabe expats desperate to move to a place in the sunshine Spain may be the ideal place, property is cheap and the weather is good, unfortunately jobs are scarce and taxes are high. In an attempt to offload empty properties the Spanish government introduced new legislation allowing resident visas’ to be granted to non-EU citizens if they invest €500,000 into the nation’s real estate market.