Spanish prices not to bottom out for two years

Property prices in Spain are not expected to bottom out for another two years, a report from Spanish Property Insight has suggested.

The forecast means that real estate values in some parts of the country are likely to fall further still, creating even more bargain opportunities for those looking to buy homes in Spain.

Mark Stucklin, of Spanish Property Insight, made the comments after reviewing the latest monthly economic bulletin from the Bank of Spain.

He indicates that property prices will decline in some parts of the country for another two years, due to a glut of homes coming onto the market of between 700,000 and 1.2 million properties.

Mr Stucklin said: "[The Bank of Spain] compares the price evolution today to previous property slumps. In both previous cases prices fell for about four and a half years before bottoming out.

"So if the past is anything to go buy, prices today will continue sliding for another two years and could fall another ten per cent if this turns out to be a repeat of 1979."

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