– Up to 2million properties languishing on the market that cannot be sold
– 400,000 Britons either live in Spain or own a holiday home
– Experts warn house prices may not begin to recover for up to 15 years.
Hundreds of thousands of Britons living in Spain or with holiday homes there risk being the worst hit as property prices continue to plummet.
Analysts warn values could slump by another 50 per cent in the crisis-hit nation, with the biggest falls in coastal areas full of apartments and villas owned by those from the UK.
The slide threatens to be so bad that swathes of half-built or unsold holiday homes along the Mediterranean coast will simply have to be demolished as no-one wants them, even at rock-bottom prices.
The warning came from RR de Acuna & Asociados, one of the country’s leading economic consultancies. It predicts the relentless gloom could stretch more than a decade – even up to 15 years – with falls of up to 50 per cent along the coast where around 400,000 Britons live or own homes.
Group vice-president Fernando Rodriguez de Acuna said: ‘The market is broken.
‘In places like Castellon [near Valencia], where over-development was mad, banks are not financing anything and there is a high prob- ability these properties will never be sold. They will have to be knocked down.
‘Banks are offering huge discounts and nobody is calling. Marbella has already fallen by 50 per cent and prices are going down and down.’
The firm’s latest analysis suggests the total decline from peak to trough could end up at 75 per cent in some areas.