Spain Housing Market May See 2nd Crash
The looming second crash comes after the Spanish $6 trillion home market rose 32 percent since the trough of the previous collapse was reached at the start of 2014. House-price declines are felt sharply in a country where home ownership approaches 80% and savers tend to use property as their primary nest-egg. While it’s too early to estimate the full dimensions of the blow to demand caused by the health emergency, the hit to housing prices in 2020 could range from 6.5% to 15%. House-price declines are felt sharply in a country where home ownership approaches 80% and savers tend to use property as their primary nest-egg. On a positive note, many experts believe that this year’s property crash won’t be as severe as the last one. Given that the country does not have an “excess of supply that needs selling and neither do we have the levels of indebtedness that we saw in the 2008 crisis,” Spain will have a “much faster recovery”, stated CBRE’s Head of Residential and Alternative Research, Miriam Goicoechea
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