Spanish house prices tumble
A few weeks ago I was talking with a friend who happens to be a long-time property developer in this part of Spain.
“I told them [the banks] all those years ago”, he said, “that Arcos de la Frontera was a town, not a city. And that nobody would pay 120,000 euros for a standard town apartment. 90,000 euros would have been a realistic price.”
This image shows the “Novo Arcos” urbanisation. Here, property prices have halved in six years. Image from eyeonspain.com
Seems like the banks didn’t listen. But then, we are talking about that boom period of 6 or 7 years ago when house prices had doubled and were still on the rise. In other words, the boom before the bust.
Those apartments didn’t sell then, and have not sold easily since. So what options are left open to their owners, the now infamous, imperiled Spanish banks?
Well I am told prices have now tumbled from 120,000 euros to between 40-50,000 euros in the last 6 years. Such is the state of the property market; such is the necessity for the banks to have properties taken off their hands.
So is it a good time to buy in Spain? Maybe, although prices could drop further still. Why not consider a low monthly rent with the option to buy… these days the potential buyer holds all the cards.