Unemployment rises stifling demand for Spanish property

As unemployment continues to rise in Spain, demand for property declined for the third straight month in November, it has been claimed.

Concerns surrounding the state of the national economy are also weighing heavy on buyers minds and causing many individuals to hold off buying property in Spain.

Fitch Ratings is predicting that there will be a 30 per cent drop in home prices from their 2008 prices, completely bottoming out by 2012.

So far the property research firm said that home values have fallen by approximately 22.5 per cent since the peak of the market in 2007.

Meanwhile, new research has suggested that the property market in Spain could be set to recover faster than the wider economy, Reuters reported.

German real estate advisor IVG has claimed that low rents in the country, which are attracting an increasing level of demand from tenants, will help to bolster the market and push prices up once again.

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