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