January Property Auction
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Unsold homes on the rise

The glut of newly built Spanish properties which are unsold has increased by 20 per cent in six months...

The Spanish daily newspaper El Pais has reported that the number of newly built Spanish properties languishing on the market in search of a buyer rose by 20 per cent during the first six months of this year.

The article is based on new research by the Ministry of Housing and the University of Navarra, which found there were 503,000 new homes on the market at the end of June, almost 22 per cent more than at the end of 2007. However, given the lack of reliable data available from the Spanish property sector the true figure of unsold new homes could be much higher.

According to the website Spanish Property Insight, Beatriz Corredor, Spain's Minister of Housing, recently forecast the number of new properties on the market without a buyer would rise to 650,000 by the end of the year, though Tinsa, one of Spain's leading appraisal companies says 920,000 is more likely.

During the height of the construction boom over 800,000 new homes a year were started in Spain which is more than in France, Germany and the UK combined. Developers are still finishing new projects started at the height of the property boom, which means the number of unsold new homes is still growing.

However, the demand for these new homes has collapsed and some of Spain's largest developers are reporting sales are down by as much as 90 per cent.

Source: www.homesworldwide.co.uk


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