Economic with the truth in Spain
The Spanish property market is having the thumb screws tightened once more as one leading publication places property prices in Spain as being a massive 55% over valued right now.
The Economist has assessed a number of global property markets and in doing so, compares actual prices with market rent values. I.e. What is the return benefit compared to the price of ownership?
The problem with their data, according to many professionals in the industry, is that it is based on poor statistics provided by the banks.
Once again, the Spanish banks are throwing a spanner in the works by claiming prices only fell by around 5-6% last year – over inflating the value of the assets they’ve reclaimed.
Anyone selling a property in Spain would have been able to tell the Economist that values fell by around 10% in reality and nearer 30% in total from the height of the market in 2007.
How much more of a battering can valuations and property sales in Spain take, especially when such poorly based data makes such high profile reading?
What doesn’t kill it will make it stronger, eventually.