A difficult-to-shift housing over-hang plus a growing number of repossessions will keep pushing down prices say Fitch, an international ratings agency.
No light at the end of the tunnel for the Spanish property market, at least not during 2011. That’s the depressing conclusion in the latest report from Fitch, who forecast that average house prices will fall between 10pc and 15pc this year.
Behind the falling prices lie, once again, Spain’s monumental housing glut plus a growing number of bank repossessions coming onto the market. Add to that an astronomical unemployment rate of 20pc, weak economic growth, and doubts about the government’s economic programme, and you can sort of see where they are coming from.
Along with Ireland, Spain will be the least attractive European real estate market for investors this year, say Fitch.
But aren’t Fitch and other ratings agencies usually behind the curve? Big funds may have to follow their recommendations but small investors can be more nimble. Wait for the likes of Fitch to give you the thumbs up and you may miss the boat.