Banks in Span are just about out of the business of lending money on residential property. The only people who can buy now are cash buyers and those who can borrow for the purpose by remortgaging their principal residence outside Spain.
The Spanish government are actively seeking and may well force weak banks to merge or go out of business altogether. The stronger banks have to increase their capital reserves and at the same time make massive settlements on the international markets for the billions they borrowed to finance the property boom. They can only do that with EU or government aid.
Faced with this serious economic uncertainty, lack of finance, weak demand and massive over supply the housing market cannot recover. Most savvy clued up potential buyers know full well the reality and will wait until the market crashes through the floor. When that will be is anyone’s guess but the certain thing is it’s coming.
When prices across the board arrive at mid nineteen seventies levels I will start to believe it.
i will be happy if they go back to mid 80’s prices then i will jump in and buy but it will not be an investment it will be a lifestyle purchase and i think to wait longer would see the investors snapping up the better positioned properties.so maybe another 18 months until it all has sorted its self out then look unless it all crashes around our eyes and burns which of course is a possibility