If Spain keeps the euro then I expect to see nominal property prices fall for a few years yet and then the market will stabilise and just bob along. Which is no bad thing. Without overall control of the money supply the Spanish government will not be able to manipulate the market according to its wishes (or the wishes of the various lobbies that try to bribe it). That’s not to say there won’t be money to be made (or lost) by investing in property, but as Angie says, it will have to be made by backing the right horse rather than any old horse.
Shakeel makes a good point about regulation – governments can make as many rules as they like, but getting people to stick to them is another matter. I’m hoping that without government interference the market might be able to regulate itself a bit better, e.g. constructors will be forced into building houses that people actually want to buy, but maybe I’m being too optimistic.
If Spain leaves the euro then I’m afraid we’ll see Spain attempt go back to its bad old ways. We probably won’t see a boom like the last one, but certainly attempts will be made to drive up nominal property prices.