Huge oversupply in Spanish property market
Research suggests that the Spanish property market has a massive surplus of existing homes available on the open market and this continues to have a negative effect on the country’s property developers.
An estimated 2 million properties are currently listed for sale across the Spanish property market, experts suggest the current annual demand is roughly a quarter of a million homes so based on these figures it will take until the end of the decade to clear existing stocks.
Spanish property developers enjoyed a massive construction boom during the ten years preceding the global cash crisis producing around 675,000 units each year but many developments stalled as credit facilities were withdrawn across the financial industry.
According to a leading property advisor there is enough land with approval for residential housing to provide another 4 million Spanish properties but with so many existing properties up for grabs much of it is unlikely to be developed any time soon.