New-build Spanish homes 'to remain unsold'

Many properties in Spain's new developments may remain unsold for up to two-and-a-half years, it has been claimed.

According to figures released by the Institute of Construction Technology, there are almost a million new-build properties on the country's coastlines, many of which are not being bought due to a lack of interest from British investors, Property Wire reports.

Findings from the institute estimate that approximately 600,000 homes were completed by developers in 2008, with output for 2009 expected to drop by 50 per cent and a further two per cent fall predicted for 2010.

Spokesman for the body Josep Fontana explained that work levels in the country last year almost reached those seen during the late 1990s.

"In 2008 there has been a lot of work, almost as much as in the best years of the property boom," he was quoted as saying.

However there may be an increase in buyers once the current economic downturn eases, as the number of Britons considering emigrating to the country has seen a 12 per cent increase, the Guardian reports.

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