Spanish authorities and developers are trying to calculate how much "extra" houses were put up for sale. Numbers do not add up. But in any event since last year, the real estate market is oversaturated with the proposal, which causes a fall in prices. The situation, according to experts, no change in the next two years.
Data on the number of new homes in the Spanish property market are different. According to unofficial statistics, more than a million homes in Spain can not find its owner. However, recently, as reported by Spanish Property Insight, the Spanish Association of Entrepreneurs Seopan denied those figures. Stating that the number of unsold homes belonging to property developers and banks, and exaggerated to speak about 350 thousand in the same time, the Government of Spain declares 730 thousand homes.
Despite the difference in performance, and developers and the authorities agree on one thing: the market is oversaturated with Spain. The country has built more homes than sold. As of late October for 12 months, was built about 35 thousand new sites, 44% are in Valencia, and 13% in Galicia, and about 9% in Andalucia. There is a danger, experts say that part of the excess supply will never be sold, because falling land prices mean that more new homes will be cheaper already constructed.
Pessimistic market participants confirm recently published data from the National Institute of Statistics, which leads PropertyWire. Property prices in Spain in the third quarter of 2010 decreased by 2,2% compared to the same period in 2009. In Andalusia and the Balearic Islands, a decline of 2%, real estate in the Canary Islands fell by almost 3%. The biggest decline was noted in Cantabria - about 7%. Only in Madrid was marked by a slight rise in prices - at 0.9%.
Almost 80% of property owners reduce the cost of housing offered for sale, said one of the leading portals Spain Idealista.com. According to him, lowered prices about 26 thousand vendors. Despite this, the property is still difficult to implement. Only in Palma de Mallorca empty 15 thousand new homes in the Balearic Islands - 45 th
The specialists of the Bank of Spain state that prices have receded to the level of 2005. Moreover, the biggest decline was seen in those areas in which traditionally prefer to buy homes overseas. Experts believe that falling prices for Spanish property will continue for the next two years.