Spanish Property Prices Update
I haven't done a recent update on Spanish property prices, but my spies
tell me that the latest survey has shown that people buying in Spain
have been offering on average 25% below the asking price. Perhaps we
have just begun to enter the last stage of the collapse in prices. This
is usually where prices fall fastest.
If this is the case then those properties that have now come down to
more reasonable prices will be receiving offers of less than €60,000
for the average 2/3 bed flat, a figure I said we'd see before any
rises. I think we'll undershoot that figure. Maybe at the end of the
year when I do my update we'll find we are sliding towards €50,000. I
wouldn't be at all surprised.
Those who are buying now are jumping the gun. We still have further to
fall. The tourist market is wrecked, the over-hang of unsold new
properties, and second hand homes is still vast, and Spain is still
mired in economic doom and gloom.
There is time. Rent for a year or two more, then maybe you will find
prices have started to bump along the bottom. They will continue
bumping on the bottom for some time, but they aren't at rock bottom yet.