The Spanish property market will take 3 years to absorb the glut of 1 million new homes, an official from Spain’s property register claimed recently. Even if no more new homes were built the glut would still take 2 years to liquidate. In reality, Spain is on course to start close to 200,000 new homes this year.
The same official also claimed that demographic changes are also partly to blame for the recent drop in Spanish property sales, whereas most of the sector like to blame the financial crisis. Spain’s falling birth rate in the 80s means that demand for housing is “drying up”, despite the massive immigration of recent years.