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Spanish property market acutely oversupplied
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News on Spain
8 May 2008
There is a severe oversupply of homes in Spain, equating to around 1m residential units, according to CB Richard Ellis.
Between 50,000 and 100,000 of these Spanish homes are reportedly located in the Valencia region. Consequently, CB Richard Ellis forecasts that it will take up to three years to deal with the demand/supply deficit in Spain.
Jose Louis Marin, CB Richard Ellis Valencia, said: “After the boom, year’s supply and demand have to return to equilibrium.”
The estate agency confirmed that the days of double-digit capital growth in the Spanish property market are now behind us, at least in the short to medium-term, and anticipate that average Spanish property prices will appreciate in line with inflation over the next few years.