Spanish house prices expected to drop further

An expert from the International Monetary Fund (IMF) has predicted that Spain's property market will experience further falls in housing values.

Commenting on the overall health of the Spanish economy, James Daniel, IMF mission chief, explained that although the country's government has taken positive steps to encourage a recovery, there are still hurdles to overcome.

Among them is the real estate sector, with Mr Daniel noting that there is still a large amount of unsold stock on the market and he predicted that "house prices probably also have further to fall".

However, he pointed out that the housing industry as a whole appears to have "returned to its historical average in terms of employment".

Last month, freelance property journalist Marc Da Silva said that he believes that real estate values in Spain will decline more before stabilising.

He noted that the current economic situation presents "a wonderful opportunity" for investors to find a great deal on a home in the nation.
 

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