Spain needs 5 years to sell all new builds on market

By the end of 2010, there were 687,523 new properties looking for buyers on the market, only a slight decrease on a year earlier. Based on current trends, fewer new properties coming on the property market combined with healthier sales last year, it is estimated that it could take between 3 and 5 years to absorb this accumulated stock.

According to the Ministry of Housing the accumulated stock of new properties on the market decreased at the end of 2010 by 0.08%, the first decrease seen since 2005. It is hoped there will see further improvements in 2011 but the high level of unemployment and the lack of lending by banks is still handicapping the Spanish property recovery. It also needs to be pointed out that compared to 2010, the first 3 months of this year have seen a decrease of 43.8% in the sale of new builds, not an auspicious start to the year.

Of course we are talking in general and can expect the housing stock to decrease faster in certain areas than in others, with prime locations seeing a higher demand for properties.

It should also be points out that many ‘experts’ have been claiming that it will take between 3 and 5 years for the market to absorb the stock for the last several years.

Andrew Bellés

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