Is the Spanish property market bottoming out?

The discussion about Spain’s property market is in full gear, while many self-interested individuals and company spokespersons such as Laura Nicoll, director of Iberian International, believe that “it is only a matter of time until there is a housing supply shortage in Spain”, others like Greg Schellhammer, author of “Survive the Crisis in Spain”, says “the worst is only yet to come”.

Laura Nicoll’s “belief” comes as somewhat of a far-fetched illusion, considering that Spain currently has over one million homes empty. But then again it appears the “wishful thinking” goes back to 2007, when they already preached similar fantasies: “one million foreigners [are] expected to buy on the costas in the next six years, rising to three million by 2025”

“Fact is, we are facing a reality in Spain, that is so much bigger than just housing and banking, we are in the middle of a global crisis that goes beyond financial and economic, we are talking about a crisis which is rattling at the core of our existence”, says Greg Schellhammer and it is far from over, something which becomes self-evident when you look at property price trends such as the one presented in the latest Fotocasa figures.

Greg is not the only one predicting further gloom and price drops in the Spanish property market, also the BBVA, Spain’s second largest bank, predicts that average Spanish property values will depreciate by 10% this year, and by a further 12% next year and prices are not expected to start to recover until at least 2012.

Image by geraint_owen under Creative Commons.