21/012/2009 – Spanish property prices have not bottomed out and according to one Spanish bank property in Spain was over valued by 30% and have only dropped 10%. The biggest house price falls to come are likely to be in the holiday hotspots where many overseas buyers have bought and will be lead by the Banks.
Banks are now Spain’s biggest property owners having repossessed property as loans went bad. Bank owned property is often lower priced with huge discounts available however BNP Paribas Real Estate, the real estate arm of French bank BNP Paribas, argues that banks in Spain will start having to offer discounts of 50% in 2010 to shift some of their stock of property.BNP Paribas Real Estate says present discounts not big enough to make sales.
The price drops could well be lead by the Banks who are now the biggest owners of Spanish real estate. BBVA, Spain’s second largest bank says that Spanish property prices were 30% over-valued, but have only fallen 10% so far.
Pundits suggest that the biggest Spanish property price falls will come where they are the most unsold homes. That could mean that areas around Madrid and Spanish hotspots such as Malaga (Costa del Sol), Castellon (Costa Azahar), and Tarragona (Costa Dorada) could see cut price Spanish properties in 2010
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