Flat for sale for 127,000 Euros in Barcelona Gothic Quarter, asking price reduced by 24% (see details at Idealista.com)
The supply in Barcelona and Madrid of properties for sale under 200,000 Euros has exploded in the last year as vendors drop their prices, reveals new research from Spanish property portal Idealista.com.
Over 12 months to the end of July, the number of properties listed at Idealista.com with an asking prices of less than 200,000 Euros rose 55% in Madrid and 48% in Barcelona.
Since the peak of the boom in 2006, properties in the 100k to 200k Euros price bracket have gone from 8% of the total in Madrid, to 27% today, an increase of 458% since August 2006.
In Barcelona, they have gone from 3% of the total in October 2006 to 18% today, an increase of 638%.
The cause? The credit crunch and an over-supply of property forcing vendors to reduce their asking prices if they want to sell, according to Fernando Encinar, head of research at Idealista.com. “The only way out today for vendors is to realise they have to drop their prices if they want to sell,” Encinar told the Spanish press.