Eurobrix.com: The European Real Estate Portal

Spain's Housing Oversupply Finally Being Addressed

by Yuri Brixenmortar 3. March 2011 15:29

Experts are now in agreement that what caused the collapse in the Spanish property market was primarily an oversupply of new homes compared with demand. As Spanish property portal Kyero reports this week, former Spanish Ministry of Housing adviser Ricardo Verges estimates the number of new houses built during the boom years of 2004-2007 that have yet to be sold is somewhere in the vicinity of 2.3 million.

But since the crash, developers, under pressure from Spanish authorities and finding a market deserted of buyers, have finally eased off on construction. Property sales increased by 6.8% in Spain last year, the first positive growth since 2007, indicating that finally there are more houses being sold than built. The Spanish Association of Developers and Constructors predicts the market will undergo further significant recovery this year, as Select Property reports.

"The Spanish housing market has reached an important milestone with official sources predicting that any remaining oversupply will be absorbed this year.

Following an improved 2010, the total property transactions increased by over 6.8%, substantially helped by some of the excellent opportunities in the market.

Spain’s Association of Developers and Constructors (APCE) projected that, at this rate of property transactions, the Spanish housing market should recover considerably in 2011. With more property being sold than built, the outlook for Spain’s property market is looking increasingly positive."

With the market finally looking safe to invest in again, property buyers would do well to look at purchasing before prices return to their proper value. For an extensive range of home buying opportunities, check out Eurobrix's Spain section or our main listings page.

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Comments

3/29/2011 1:36:01 AM #

Experts agree that oversupply of new homes caused the

As Spanish property portal Kyero reports this week, former Spanish Ministry of Housing adviser Ricardo Verges estimates the number of new houses built...

pligg.com

5/9/2011 10:13:09 AM #

Spain's Housing Oversupply Finally Being Addressed

Experts are now in agreement that what caused the collapse in the Spanish property market was primarily an oversupply of new homes compared with demand.

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Yuri Brixenmortar

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