The biggest problem is on the Mediterranean coast, where too many holiday-homes were built with foreign buyers in mind during the boom.
The map above illustrates the size and location of the Spanish property overhang of newly-built homes.
Based on figures from the Department of Housing for the end of 2011, the map is a bit out of date, but the problem today is just as big. Sales to foreigners increased in 2012, but so did the number of finished homes, so the net result was likely to be have been little or no change to stock levels.
To sort out this problem of the glut, which is weighing down the market, Spain still has to sell a lot of new homes in Andalusia (Costa del Sol), Valencia (Costa Blanca), and Catalonia (Costas Dorada & Brava). This is the problem that the so-called “bad bank” will have to help solve.
Steven Cahill says:
I would be so interested to see this for 2012. I really don’t see the 10% tax hike on property purchases helping either. Its certainly put me off buying for now.
Janet Gardiner says:
I bought in July 2012 paid the property tax on the purchase price, only to be hit by a further property tax (with interest) on the valuation of the property by the tax authorities. This made it twice the tax I was expecting to pay.
Richie says:
Surprising that the Valenciana region has the highest amount of unsold properties, I would have thought (a rough guess) that it would have been Andalucia. Would love to see an up-to date version.