House prices in some parts of Spain have falling by 30% in the last twelve months says a report from Union de Creditos Inmobilarios (UCI) president Juan Carlos Sandoval.
His statement comes as real estate group Don Piso announce the closure of 120 of its offices with the loss of 350 jobs. Most of the closures are in the Cataluna area, but the problem is more widespread and affects the whole of the country.
Many large promoters and developers are using promotions and offers to try to move some of their stock as supply outstrips demand by a long chalk.
On the Costa del Sol developers have continued to develop into the less commercial areas and empty blocks of apartments are to be seen all along this stretch of Spain.
With the credit crunch affecting foreign buyers it will be interesting to see how much the property prices drop before they are of interest to the Spanish nationals.
While the UCI says the price drop makes for a good time to buy property, I would disagree as prices have some way to fall before they are realistically priced, as in the UK.
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