Just to add to the “guests” point about falling prices –
I have seen asking prices fall by 20% over the last 18 months in Sotogrande. I still don’t see much shifting even with these reductions, but the prices were plain crazy to start with -London was cheaper.
However the prices of newbuild apartments remain beyond belief. I think that when the ECB hikes interest rates, as Trichet said they would last week, the speculators holding up this market are going to get squeezed…