Property in Spain remains severely overpriced
Property in Spain remains highly overpriced, despite drastic price cuts in the last year or so, according to data compiled and published in The Economist magazine.
The print publication, which looked at property values in a string of developed countries, claims that average prices in Spain need to fall by a further 50% in relation to rents and incomes, just to get back to the long-term average.
By the standards of the price-to-rent ratio, Spanish property is the most overpriced in the developed world, and the second least affordable country, after Holland.
Property prices “will have to fall still more in most countries if affordability…is to return to its long-term average,” says The Economist.
However, it is believed that The Economist used official Spanish housing market data, which many experts believe is hugely misleading. Consequently, prices may have already fallen further than magazine reports.
