The house I bought in Wimbledon in 1988 was worth 25% less by 1992 & I was in negative equity. At the same time our family income was cut due to my wife having a baby & stopping work. It was a very difficult time. By 1994 my house was worth 35% more than I had paid & it subsequently proved to be the best investment I’ve made. Even during that recession some properties went up, some stayed the same & some dropped.
No one knows what is going to happen in Spain or elsewhere but not EVERY property is going to drop, people will look for quality.
A colleague bought in the early 90’s near Torreveija, paid £12,000 for a 2 bed villa, he is very unhappy now as he thought his place was worth around £150,000 & he has been told now it is only £120,000. He is moaning that he has lost £30,000, I tell him that he has made over £100,000 but he can’t see it.
Not every-body is a loser, even now.