My take is that the health of a property market should be measured in sales volumes rather than house prices, and that away from the costas there is no chance of sales volumes increasing. The new austerity measures combined with tighter lending criteria, increased mortgage interest rates and high levels of negative equity will mean renting remains much more attractive to all but the tiny few who are in a financial position to take advantage of the bargains that will appear.
On the costas there is the possibility that Spain will drop out of the euro and that the ensuing currency devaluation would make coastal property more attractive to foreigners. However I don’t think that will happen this year.
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