My thoughts are…..
1) The Eurozone adopted a two tier Euro and Spain’s Euro was in the lower tier (how much lower?)
– The Club Med Euro would drop by about 30% in comparison to the Deutsche Euro. This would effectively devalue property by that amount overnight. Not too bad for the people who live in Spain, painful for those expats who own property there.
(2) Spain reverted to the Peseta having left the Euro and likely exchange rate, or devalued?
– Pretty well the same as answer to 1)
(3) Spanish Banks unloaded on to the market All their holdings/exposure in residential property in Spain and elsewhere
At the actual value they could unload them rather than that which is currently on their books they would probably all collapse with the possible exception of BBVA and Santander. The damage this would do to the worlds banking system would match or exceed that of the subprime crisis. Property values would probably drop by over 50%.