Gerald Beck, managing director of Raiffeisen, told Property Investor Europe that across the continent a real estate recovery will not occur during 2012/2013, as was originally envisaged.
"We think that the market recovery will not come as quickly as we all had hoped," he said. "As things stand now, we will not see it happen next year."
With property prices already at rock bottom in Spain, this won't be good news for those looking to sell their homes in the near future.
However, for buyers looking for budget property, this means they will have longer to benefit from record low prices.
Mr Beck also predicts a greater number of distressed assets entering the market in central and eastern Europe.
However, he is relatively optimistic that the market will begin recovery in 2014 once the euro crisis ends.