There is still a massive inventory of homes on the market in Spain, according to a new study, and a two speed market that can only digest some of that stock.
There was a total of 1.6 million residential properties on the market at the end of 2014 in Spain, according to new research by the consultants RR de Acuña y Asociados, who specialise in real estate.
The total figure includes new and resale properties, with 668,000 homes for sale in metropolitan areas, 331,000 on the coast, and 657,000 in areas “where there is no demand whatsoever,” according to the Real Estate Market Statistics Report (Anuario Estadístico del Mercado Inmobiliario Español ) published annually by the consultancy.
TWO SPEED MARKET
They report a two speed market with “all the recovery” concentrated in cities and certain consolidated areas of the coast.
The report is positive about the outlook for urban areas “where most of the population is concentrated.” This they describe as the “Spain that works.” In the Spain that doesn’t work, namely some parts of the coast, and large parts of the interior, they describe the stock of 657,000 homes for sale as “extreme”, and argue there is “no demand whatsoever” for this stock.