Spanish property prices to fall by a further 50%

LAST UPDATED: 9 Feb, 2013 @ 09:53
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Spanish property prices to fall by a further 50%

SPANISH house prices could drop by a further 50% and may not recover for the next 15 years, according to experts.

The Costa del Sol is among the worst affected areas in the country, with the total fall in values predicted to be as much as 75% in some areas.

There are 800,000 used homes on the Spanish property market, with another 300,000 having been foreclosed by the banks and a further 150,000 in foreclosure proceedings.

What’s more, developers have 700,000 completed units not on the market and another 250,000 still under construction.

“The market is broken,” said Fernando Rodriguez de Acuna, vice-president of Spanish economic consultancy RR de Acuna & Asociados.

“In places like Castellon, near Valencia, where over-development was mad, banks are not financing anything and there is a high probability these properties will never be sold. They will have to be knocked down.

“Banks are offering huge discounts and nobody is calling. Marbella has already fallen by 50% and prices are going down and down.”

350 COMMENTS

  1. Caccia, you state that you will not waste any more of your precious time and yet you’ve been posting like a blogger with attention deficit disorder for weeks now! Clearly, the amazing life you say you lead is a total fabrication and in reality you are just a silly old troll who is alone and bored to hell, and has become obsessed with bombarding blogs under multiple aliases with totally incorrect nonsense about Spain, even when you are caught out and corrected on multiple occasions by numerous people. You were not in the army and neither do you own properties abroad. Too much information me thinks. Now get back to ya life, whatever sad existence that is, and stop talking caca.

  2. Tony,

    This is the only time i will respond to your stupidity as it appear you have the same mentality as others.. If you care to look back to my first response to people’s woes was on November 3rd. It is now November 19th, not bad for some 20 years of living here and reading of complaints that they paid top prices for property, cannot sell, no work etc but that’s life, some gain and some lose.

    I can understand how people feel but no end of complaining will solve the problem. I only wish that people could find work or could sell their property as i have lost a few friends due to the problems stated on this site and some for medical reasons but have regretted leaving.

    I have never trolled except on this site that’s why i said BYE to certain people due to the negative attitude on this site.

    I do have have property in the UK and pay my taxes which i have stated. There is no need for me to lie and had been in the army in the REME. Basic training at Blandford, 8 weeks electrical school training, then posted to Warminster and Tidworth.

    Never had multiple aliases, only the one “caccia”.

    My main theme has always been if you care to note was that a “pensioner that is financially secure has a better quality of live in Spain”. Why have people purchased and moved to Spain, must be a reason and know doubt if people had work or stuck with unsalable property they would remain.

    I have never said i lead an amazing life but do lead a contented life or would have returned to the U.K. Simple really and most if not all of my friends that are perhaps in the same position as myself would say the same.

    Could you also give me the person’s name and date as to where i have been corrected by numerous people. Perhaps the “Snow” incident to which i apologized, but cannot remember every little thing i have said. It may be in their mind that they have corrected me but infact i have always answered and corrected them. Sorry that i said “Could you also give me the person’s name and date” as i wish to close further waste of times, have many other things to do as proven in the 20 years being here.

    Bye Tony, you can all moan to each other.

  3. Caca, people are fed up hearing about your “precious time” that is all being used up writing multiple posts on here throughout the day. If you were so happy in Spain you would not be on this blog every minute but out enjoying your life instead, so you’ve contradicted yourself massively. You just can’t stand being corrected and of course everyone misunderstands you. Well take it from me that you are not misunderstood at all. Ya talk caca and you have far too much time on your hands, and it shows. You are a sad, loneley, expat, it happens a lot in Spain unfortunately.

  4. TO ALL,

    Could not resist in coming back again after reading reports in the media. No more replying to immature people and stupid woes of grief, people with no work due to timeshare collapse, painters and decorators, so called handymen and builders, people who sit in a bar drinking and spurting out their sorrows, drifters and spongers that cannot fall back on the Spanish state system due not declaring their cash in hand jobs and generally could not make it back home, list too long to continue.

    But what i will bring you is of the wonderful life back in the U.K a voice of reason and good tidings.

    “http://www.independent.co.uk/money/loancredit/1430000000000″

  5. Hi Tony,

    You seem to have a lot of time on your hands, unemployed.

    That’s the joy in being a retired pensioner, have all the time in the world and my daily life is pretty full except when i come onto this site, mind you just for the few weeks that i had found it and was quite surprised at the amount of English Brits finding it difficult in finding a job above a Spaniard.

    I suppose it won’t be long before looky looky men will be the Brits.

    Off shortly to meet other retired financially strapped pensioners who do own villa’s with no debt and not wishing to return to the U.K, with no tales of woes, Just love it. Weather starting to look good again in the U.K, i suppose a few more deaths of old age pensioners that cannot afford heating bills. Whoops almost forgot, must book for the March med cruise again, thoroughly enjoyed the one earlier this year. If you think i’m being sarcastic it’s no more than what i have been receiving and i am quite capable of also dishing it out.

  6. Have to agree with majority of posters above Cacca, you keep saying you’re off and then back you come with your lengthy nonsense and justifications for being in Spain, and, interestingly on here you’ve now admitted you are a Troll which Angie asked you earlier but you avoided.

    You say you have UK properties, so George Osborne is coming after people like you in his Autumn Statement if you’re a resident of Spain.

    You just cannot help yourself dish up continual drivel and vitriol to others can you?

  7. Caca, you have proved the saying ‘there’s no fool like an old fool’. Off you go again making silly assumptions about people and proving to the whole blog how pathetic you are.
    I don’t think you are sarcastic at all, you just need attention, which is why you cannot help yourself in posting over and over again on this thread to satisfy that need. I hope you get the help you need – perhaps Age Concern or another pensioner support group can help you? I have a link if it would help you?

  8. Mike,
    See you must be out of work, posted 11:17am.

    Why not say the merits for someone that is thinking of coming to Spain perhaps that would be a more positive way of saying something useful instead of all the woes on here. By the way, why did YOU come to Spain i have given the reason i came to Spain. Could you please answer that question or are you like the other’s that are going through bad times and blaming others.

  9. Tony,

    See you must be out of work also, posted 11:46am.

    Dont’ need to repeat myself, the note to Mike would refer to you also, and the important point i’m making is why did YOU came to Spain.

    So don’t lets beat about the bush, all be honest for a change, even if it’s to yourselves.

    Out again soon, lots of things to do.

    By the way did you and others read …the independent.co.uk

    Nobody has answered to that report.

  10. Ah, Reapy Re,

    I see your a Daily Mail reader, that say’s it all. Bye the
    way it’s not €40K but €50K cash and over that you have to declare. Added to that are assets and cost of property when first purchased, i suppose you know why it’s the cost of first purchase price.

    Yes, they may have thought of doing a Cyprus but that is now out of the window the same as the British “Mansion Tax”.

    See my write up on Nov.3rd @ 7:34 pm and at 7:50pm. Love all this, it’s like teaching a kid.

  11. Stuart,

    See ROGER Oct 30th, 4:45pm and your own comments. Don’t know why you’re on this site, i would suggest you stay on that camping site in France.

  12. He (cacc)would be flushed down where he belongs if he ever visited Sicily with his silly name.

    He cannot resist trolling even when he says he’s going, a true W.U.M.

    The worst thing about him is he is about as low life as the crooked agents that misled people in the boom years, he wants, quote ‘some stupid Brit to overpay for his property’ that he’s stuck with. An unsavoury Troll at that!!!

  13. Angie,

    I never said, your quote. “some stupid Brit to overpay for his property that he’s stuck with”. Read what i said properly. Please don’t lets go into Sicily now, the most corrupt part of the Italy. Besides your Sicilian.

  14. Hi Angie,

    Is this what you were referring to:-

    ‘it’s not for sale’ and then add ‘unless some stupid Brit makes an offer i can’t refuse’

    I can quite understand how a Sicilian cannot understand English.

    I could give you an explanation of what that means if you like, (ya know, as one of your compatriots would say, an offer he can’t refuse) Perhaps if i spoke Sicilian you would understand better as you’re not that familiar with the English language

  15. Angie,

    Forgot to mention that was a quote i made to MIKE Nov.16th @ 5:49pm. What say you. P.S. Don’t speak Sicilian and afraid proper Italians find it difficult to understand it also.

  16. You are completely barking mad cacca, you don’t know what you’ve said before and when told you say sorry for it, you are a sorry excuse for a man, you admit you Troll on here, you admit you would sell to some ‘stupid Brit’, many of your facts are wrong, you are the one who is stuck in Spain and you do not own the properties you say you own in the UK Billy Liar.

    Trolls like you hide behind strange posting names and exist to wind people up by popping in and out of sites. OP should ban you and we can all get back to proper debate and courteous banter. Sicily would not even allow you in, lol, lol

  17. Paul,

    Another nutcase who needs to read what I have said. Don’t tell me you were in timeshare and a Sicilian as well.

    There was only one thing i had mentioned that i apologized for and that was about “Snow”, and the last time i had heard this morning from a friend in the U.K is he had snow. I stand by everything i have said and wish you could point out facts that are not true. As for trolling, i don’t troll, i said that just to pacify nutcases on here and my first contact was on Nov 3rd, not bad for 20 years being here in Spain. There had been many more “trollings” prior my first, why not respond to them as i only respond to stupid people like yourself who do not know nothing about anything which clearly indicates in your stupid note.

    There is no proper debate, debate about what, people that have no work, people that have unsold property, thats not debate, thats moaning. All people tend to focus on is what i said about “snow” but nobody as yet have said anything that first drew them to Spain, including yourself.

    For those that are not living in a van yet, be thankful that you still have a roof over your heads can still pay for a
    landline and the internet system and should be discussing the plight and problems of hundreds of Spanish and English people that have houses repossessed not about yourselves.

    I’m quite happy to remove myself from this site, wouldn’t be of no concern to me as most of the rubbish i hear is about problems, but then what would you talk about. The mentality of the majority that are on this site do not like hearing the truth and justify their replies as though they know what they are talking about.

    I believe there maybe one or two on this site that perhaps understands what i’m am trying to say and one person coming to mind is perhaps Fred.

    Anyway Paul, you must also be unemployed seeing the time you wrote such trash.

    Keep smiling, perhaps things may get better for you.

    By the way, you are another person that cannot read English. See my note to Angie Nov.21st @ 10:19am regarding a stupid Brit or really anyone else come to think of it. Remember one thing “Pauline”, “The value of anything is what a person is prepared to pay”

  18. Living on a campsite in France LOL – Cacca you need treatment or your not taking your meds.

    I asked a Mexican member of an audio forum if what you were saying is correct – he said it was fantasy.

    You, like EgoSteve are constantly spewing out insults and libels – what a shame I can’t meet face to face-to-face with you two, I would enjoy that.

  19. Stuart,

    I had spoken to my son regarding this matter and afraid your member in Mexico is wrong. A Mexican can own property in Mexico, which his wife does, the same as any other National of their country and a non National can form a Company and assets of that company belongs to him.

    The same as, say in Thailand, as an example. Why not look it up and not just get bar-room lawyers opinion.

  20. Stuart,

    I had infact just looked it up, just as a matter of interest and If you enter…

    can a foreigner own property in mexico,

    you should get the proper information regarding this matter, although i already knew, and not from some bar-room lawyers opinion.

  21. I find it quite abhorrent to read some of the comments on here from grown adults who really should know better. We came on this site hoping for some help and guidance off people who had either, already brought in spain or lived in spain as we had hoped to buy a property in Alicante, but personally found the buying process fraught with complications and possible horrific outcome from articles we read on the internet. All we wanted was some sound advice, however what has ensued is boredering on disturbing and frankly pathetic. We have just returned from four days in Spain., we were disturbed to see a spanish lady in la mata rifling through the bins! We thought this may be an isolated case until we had a drive out to Daya Vieja and saw a spanish gentleman doing the same. I got out the car to speak to him and to offer him a little money ( loose change) i had but he dropped his head got on his bike and cycled away! This was what made us change our mind on buying in Spain, not some of the downright nasty comments thrown back and forth, but the fact that if this is how the spanish government treats their own which is in such a way that they have the need to search through the bins then it says it all!! Please do not start another thread on this comment i simply couldnt bare it. Some people really do need to look at themselves!! Me me me!

  22. Stuart,

    I hope this will clarify your misunderstanding regarding ownership of property in Mexico by foreigners.

    I think you will agree that the information you received from the audio forum was in fact incorrect and foreigners can own property in Mexico.

    All you need to do is enter..

    can foreigners own property in Mexico

    and see the site below.

    Slightly different in say Thailand which perhaps have more stringent laws but never the less one can still own property through forming a company.

    “http://www.mexonline.com/propmex.htm”

  23. Sue … have you never seen anyone hunting through a bin in the Uk then?
    Get real, there are down-and-outs everywhere. Spain’s got less than most.

  24. Sue,

    As you are a non resident in Spain i think you should also know that the the reasons people search bins is looking for various items that people have thrown out which are still in good condition after a clear out and re-sold once again at a car boot or of use for themselves. In fact i have thrown things away and actually seen the same items being sold at a car boot. I happened to came across two kiddies bike at the bins, in good condition, and took them to a Charity shop.

    In the 20 years i have been here i personally have never seen people searching for food at bins, doubt if they could even climb into those bins as they are so large which i might add some are underground.

    What does surprise me however is whenever i visit the U.K is the sight of large black bins and boxes stuck in front of EVERY house containing rubbish. Surely this should be banned by the councils and household rubbish taken to the dumps, or adopt the Spanish system where the disposable rubbish lorries comes around at least two or three times a day.

    You also say:-

    “if this is how the spanish government treats their own which is in such a way that they have the need to search through the bins then it says it all!!”

    Have you not heard of beggars, dossers, people sleeping in doorways, under bridges, queues for free food and so on in the thousands in the UK, not forgetting the freezing weather that these poor people have to suffer, well one could say the same as the verse you wrote but instead of mentioning Spanish change that word to English.

    Sue i thought you appeared to be more mature in your thinking and if something as small as what you saw has deferred your thoughts then Spain is definitely not a place for you as one can find all those problems back in the U.K.

  25. Anna,

    You make a good point with your comment. Spanish people have very close ties to their families, parents, grandparents etc, and one can see young girls carrying bowls of soup, food, fruit to their grandparents.

    Unfortunately this does not happen often in the U.K, that is why we have so many old peoples home where their children tend to place them and may visit them once or twice a week, if they are lucky.

  26. experts said the same about Ireland houses would go down 75%
    would not recover for fifteen years but already recovered
    down about 20% booming now hope not another bubble

  27. Are people still commenting on this forum? Has any of the advice changed, is there anything more positive about buying a property in spain? Have the prices settled, the banks seem to be doing up the apartments repossessed and relaeasing them for sale bit by bit so as not to flood the market and prices have risen? Any comments on this?

  28. I have just returned from Spain and in particular Andalucia . I was very disappointed.
    When I indicated I was in the area with the view to purchasing property
    the first words to be uttered were “BE CAREFUL” (not by estate agents I might add)
    These agents (those that are left) are talking the market up, there are 10’s possibly 100’s of thousands of unsold properties on the market. Huge blocks of apartments not completed, empty decaying shells, and the countryside littered with individual houses that are just reinforced concrete skeletons. Many illegal;… and I was also appalled by the lack of professionalism of the agents; if they do not know the answer why not admit it instead of a
    “cock and bull story”! Many of the properties for sale, particularly those that were purchased at the height of the market by English owners, are being offered at 2007 prices! In many cases the properties are on offer at what the vendor thinks they are worth, and
    not the real market value, the estate agent concurs, some of the properties
    have been on the market for years, and will possibly remain so. Lots of
    the properties are of very poor quality and have obviously been constructed by cowboys. Almost all the houses on the market have been placed with every agent in the area, often at different prices, few realistically priced, some grossly over valued.
    Most of the “estate agents” are unqualified and just out to make a fast buck. Not to mention the astronomical fees being charged, coupled with the taxes the government are applying, making what could be a reasonable price very unattractive. Beware, the property you have just bought is probably on the cadastral at a higher price than you purchased it for, invoking an additional tax by the authorities on the difference between the purchase price and their valuation, at around 8%, on top of the tax you have already paid!
    We also came across some properties where the English seller had inflated the price to reflect the fall of the Euro!!!
    The web sites are usually very poor, with out of focus pictures taken on a mobile phone.
    There are some areas where some higher priced properties have moved,
    usually to Russians and drug barons, what their motives are one can only guess.
    How do you determine if your property is legal? Stock answer was “depends on what piece of paper you look at”!
    Spain seems to be riddled with corruption and high employment resulting in some areas experiencing high levels of crime. I came across areas where the mayor was in prison, lawyers serving time, and houses uncompleted because the construction company had gone bust. The industry needs regulation and qualification, and to bring buyers back, confidence in the market needs to be established.
    I came away without any confidence whatsoever about buying in Spain.

  29. There are many properties on the market that would cost more to construct than the sale price. I would like to sell one but the prices are very low at the moment so I don’t have it up for sale but no doubt there are many who will put them on to see what happens and these are people who are not desperate for cash so you cannot blame them. Of course, there are many dodgy estate agents that add 10’s of thousands of euros on for themselves, they get the owner to sign over power of attorney to their solicitor… The Euro is weak so I expect a few sales will be happening. They are building quite a few properties around one of my places, selling apartments for €150k to €200k when you could buy similar second hand for half the price. The ideas have not changed, they meet you off the plane, put you up in an apart hotel / hotel where there are no other outside guests allowed and they keep you hostage for 4 days, shadow you 24 hours a day until you sign or not, then you don’t get to see the real prices..

  30. Pearlfisher, you are spot on. What you experienced in Spain was a car crash of a property market. This is the fallout from years of poor governance, corruption, unworkable property/planning laws, high taxation and in Andalucía, the complete incompetence of the PSOE led regional government who have repeatedly failed the region for 30 years.

    You were right not to buy property in Spain and confidence will not return to the market unless and until the property/planning laws are radically reformed. They must also start using modern building techniques. Spanish properties have fallen behind modern standards and it is rare to find even a new build property with a damp proof course, cavity walls, roof insulation and double glazing – yes, you do need these in Spain.

    Spanish properties in programmes like A Place in the Sun that are supposedly “ready to move in to” look like the properties featured in Homes under the Hammer BEFORE they have been renovated. The Spanish brand has become very dated.

  31. Reap,
    another great post telling it like it is. €150-200K for an apartment – here in France/Aveyron I can buy a superb house with grounds for that kind of money. €200K will buy 4-5 bedrooms, 40-50sq.m salon, 2 bathrooms, double garage, huge atelier/workshop, 5000sq.m + of land with glorious views etc. etc. – just way too big for 2 people. Or a small holiday home no work nec. for around €50K in an excellent climate with 4 proper seasons. Regardless of the state of any property market I would urge everyone to think carefully about where you want to live and where you should live. Most people cannot handle the thought of old age but if you buy deep in the countryside can you guarantee that you will always be able to drive, will there be community support systems in place to help you when you need them. It’s a dilemma I am facing right now. There are so many French owned holiday homes on the market that it is saturated and there are many Brits who hav’nt got a prayer in selling against this competition – oh yes and all of these properties are legal today, tomorrow and next Christmas – If you know anyone who is looking to buy in Spain get them to read Reap’s post.

    Like so many who have lived or live in Spain – do not buy, rent first for at least 1 year, in that time you will have experienced at least something of the reality of life in Spain or any other count – act in haste, repent at leisure (some leisure).

  32. Agree about the 2007 prices, some have even gone up since then, you could not make it up. Have seen some East of Marbella and they are asking over £800,000 for 200m2 built villas which are virtual dumps and need complete refurbishment. Some have been on sale for over 5 years.

  33. Jane,
    good post but cavity walls are a purely UK thing and completely unnecessary, most Brits don’t know why they are used in the first place. Heat is heat – there are two ends to the spectrum hot and cold – insulation deals with both but that you probably knew already.
    My last post appears to have been deleted – I wonder why.

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