Personally I doubt property prices will fall more than 30% at most and even so it’s nothing when they have tripled within the last seven years. The problem being of course for those who bought at the market’s peak (mid 2004) or even later.
You speak of a 30% drop in prices as if it is little. If my 50K property trebled to 150K and then fell in price by 30% then it would be worth 105K, I believe. A healthy profit but if I had recently bought the property at 150K then I would be very concerned.
Imagine the effects on sentiment in what has been very much a sentiment driven market. I don’t think I have heard anyone ever give an argument for Spanish property investment…………..I was going to go on to say “based on fundamentals” but as I have never heard any argument other than “it always goes up because it always goes up” that bit was made redundant.