Facts are, I’m afraid, very scarce in the Spanish property market. The official figures are laughable and even figures from the best of the independent analysts, Tinsa, need to be taken with a very large pinch of salt.
Truth is that nobody, myself included, truly knows where the market actually is other that it is in a pretty dire state. This is my view after having followed the market pretty closely now for a couple of years:
– Most asking prices, even those of bank repos, are laughable and should be ignored.
– Off-plan builds should be avoided at all costs. You should also be very wary of any new builds even if complete.
– Actual prices have fallen around 30% from peak. There are of course variations from area to area and in property types.
– Prices look set to fall for at least another year, probably longer.
– Other factors such as demise of the euro or sovereign debt default COULD cause a major correction.
– Don’t buy for investment only. You’ll almost certainly lose money.
I must stress that this is my own view. No doubt some others will disagree.