Spanish
Property Prices 2008 / 2009

This time last year I wrote that if Spain
went into recession, then “most segments of the Spanish housing
market are doomed to stagnant or falling prices for years to
come.” Spain did go into recession in 2008, and it is fair to
say that property prices are now falling across the board. The
questions now are ‘how far will they fall?’ and ‘how long will
it last?’
I try to tackle these questions in what I
hope will be the gloomiest annual report on the Spanish
property market that I ever have to write. Let’s hope I have
better news to report here in a year’s time.
In all the gloom there is one interesting
trend, namely the market being made by British vendors who have
to sell but who also benefit from the weak pound. Without them,
the property market in many popular coastal areas would not
have a pulse.
Sadly, this trend is also a reflection of
the woes of many British people who invested in Spain in recent
years. They bought in the boom and are trying to sell in the
bust, and many of them are trapped in Spain on declining
incomes. There is a depressing personal story behind every
distressed sale.
So, after that uplifting introduction, let’s look at what
actually happened to the Spanish property market in 2008, and
what to expect in 2009.
For full report go to:-
http://www.spanishpropertyinsight.com/buff/2009/02/market-report-2008-2009/
Article reproduced with kind permission
from Mark Stucklin of the www.spanishpropertyinsight.com
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