12:00 30 December 2012
It seems that the worse is yet to come for Spain. Due to worsening economic problems, real estate properties in the country are not selling as expected and as a result, their prices are expected to slump by up to 50%.
The biggest falls are on coastal areas that are full of apartments and villas mostly owned by Britons. As no buyers are going forward even when the properties are offered at rock bottom prices, unsold holiday homes or those that were half-built will just have to be demolished.
RR de Acuna & Asociados, one of Spain’s leading economic consultancies, predicts that the slump will drag on from 10-15 years and that it will bring down the prices of real estate properties by up to 50%.
Group vice-president Fernando Rodriguez de Acuna said: ‘The market is broken.
‘In places like Castellon [near Valencia], where over-development was mad, banks are not financing anything and there is a high prob- ability 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 per cent and prices are going down and down.’