Spanish property prices are the most overvalued in the world Favourite Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Spanish property prices are the most overvalued in the world This topic contains 3 replies, has 4 voices, and was last updated by Anonymous 8 years, 11 months ago. Author Posts January 12, 2010 at 3:30 pm #55372 AnonymousParticipant This is the conclusion of the article in The Econoimist which computes prices/rent. The first graph shows the current price/rental income in USA, UK, Spain. USA is almost at fair-value. UK is still about 28% overvalued. Spain is 55% overvalued so a future 30% decrease would only bring prices in line with rental income. The market usually overreacts in both up or down directions… http://www.economist.com/businessfinance/PrinterFriendly.cfm?story_id=15179388 January 12, 2010 at 3:53 pm #95884 peterhunParticipant According to http://spaineconomy.blogspot.com/ Spain needs a serious deflation to get its budget deficit down- which would push rents down even further. So I think falls in house prices will be even more than your 30% estimate. January 13, 2010 at 1:18 pm #95898 angieSpectator With virtually no demand for property in Spain and a vast oversupply of poorly built, possibly illegal properties, Spanish property prices may not have even started their big crash. Both their Gov’t and Banks could be left reeling at the end of the year. 😉 January 14, 2010 at 12:47 pm #95917 AnonymousParticipant Well some banks maybe. Santander for eg is probably the most successful bank in europe at the moment. Author Posts The forum ‘Real Estate Topics, News & Discussion’ is closed to new topics and replies.