Although Spain’s property market value has dropped by 12%, according to data from Morgan Stanley, the bargain luxury homes that consumers may have hoped for are yet to emerge.
While house prices in disadvantaged areas have plummeted by a huge 30%, Spain’s swanky villas and townhouses have held onto their high price tags.
“Faced with the fear that inflation could occur due to the excessive injection of money by the ECB and the Federal Reserve, tangible assets emerge as a good way to have capital in a safe place,” Manuel Romera, Director of the Financial Sector at IE Business School, told El País.
Yet it still could be a good time to buy as, in the ‘standard’ property market, experts estimate that prices have fall by approximately 10%.
Additionally, CEO of Caixabank Gonzalo Cortazar has said that negative interest rates on mortgages will be the ‘new normal’ until 2031.