Until the end of 2011 homes in Spain will lose another 5% of its value in the next year the price will drop by 3% in 2012 - 1,2%. As a result, compared with peak rates housing prices will fall by 29%, writes Prian.ru.
This is the conclusion reached by experts of real estate market, the news agency polled by Reuters. None of the respondents suggested that in the next six months, housing prices in the country will begin to stabilize.
According to experts, the value of property in Spain too high, the number of unsold objects on the market is still large, the economic situation in the country quite heavy, and unemployment is high. All these factors will lead to further declines in prices, experts say.
Negative outlook regarding the Spanish property market has also published a U.S. investment bank Morgan Stanley. Analysts estimate the bank before the end of 2011 housing in Spain could fall in price by 10%.
Experts of international audit firm PwC also expressed their views on the prospects of the property market in Spain. According to their estimates, prices have not yet reached the bottom and a full recovery could take up to 10 years.