Spanish property prices to fall further when banks reveal their hands

Average Spanish real estate prices are expected to fall further once the country’s banks reveal the backlog of distressed property on their books.

Peter Mindenhall, researcher at IPINGlobal.com, argues that the market is segmented at the moment, with some houses “priced to sell” and others which are “just on the market”.

He added that exceptional value can still be found in the country.

“The banks have yet to declare much of the backlog of repossessions on their books - when this happens, the average sale price can be expected to fall further,” Mr Mindenhall explained.

However, he issues a note of caution, stating that investors looking for a good deal on real estate in the country should carry out the required research if they are to find “the most competitively priced properties”.

Meanwhile, the Spanish property market is expected to receive a boost thanks to the country’s popularity as a tourist destination.

Between January and March this year, nine million international tourists have already descended on the country, with further arrivals due as the summer months arrive, the Ministry of Industry, Tourism and Trade revealed.

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