The supply of homes on the market below €100,000 has gone from 3pc of the total in 2007, to 31pc today, whilst 60pc of sales now have a five-figure price tag, say industry insiders.
The collapse in Spanish house prices has pushed almost a third of the property market below the psychological barrier of €100,000, according to the Spanish property portal Globaliza.com. In 2007 just 3pc of the market was below this level.
In Madrid, 14pc of the homes listed at Globaliza.com now have an asking price of less than €100,000. During the boom less than 1pc fell into this category.
“The fall in prices has left many homes below this psychological price,” explains Fernando Pinillos, head of Globaliza.com. “Some vendors have dropped their prices by 50pc since they were listed their homes.”
As a portal, Globaliza deal in asking prices, but the situation is even more pronounced when it comes to sales prices, with 60pc of the market below €100,000 according to Tecnocasa, the biggest franchise chain of estate agencies in Spain. “Today 64pc of our sales involve a home costing less than €100,000,” Lázaro Cubero, head of research at Tecnocasa, told the Spanish daily El Mundo.
Sales with five-figure price tags below €100,000 are no longer confined to small, rural municipalities. 76pc of Tecnocasa’s sales in the city of Zaragoza were below this level, 68pc in Seville, 63pc in Madrid, and 32pc in Barcelona.
“In cities like Zaragoza, Valencia, Málaga and Seville the average home now costs less than €100,000,” said Cubero.