It should not be this way but I have found complete opposite opinions. On one side JP Morgan said that the prices are close to reach the bottom but on the other side I could read an article about one month ago on The Telegraph stating that “Spain’s house prices to fall another 30pc as gluts keeps growing” with “relentless slides” until 2018.
The first opinion, from JP Morgan, is based on the fact that banks are more realistic when fixing the prices of their properties and refers to cases where complete developments have been sold in a couple of months. By being realistic, they are able to sell and, therefore, the stock will be reduced. Spain is a country for buyers where opportunities are arising and exterior investors will lead the recovery.
On the other side, The Telegraph refers to the comments of one the Spain’s top consultants, Mr. Fernando Rodriguez Acuña, saying that the stocks of properties are not being reduced and, therefore, prices will have to be reduced even more in order to reduce the actual levels of stock. He said, and refers to our area: “We think that prices will recover in the traditional coastal areas like the Canaries or Malaga within five to eight years, but for now banks are offering huge discounts and nobody is calling. Marbella has already fallen by 50pc and prices are going down and down”.
Who is correct? I have to say that I do not know. There are still so many uncertainties that may affect the market that, in my modest opinion, it is really difficult to predict the future. What I truly see are continuous ups & downs in our market.
