THE days of bargain-priced Spanish properties and freefalling prices are coming to an end according to a major ratings agency. There are ‘clear signs’ that the Spanish property market has bottomed-out and that falling house prices will soon be a thing of the past. A report from the Fitch Ratings service says that the signs of Spain’s recovery are down to a return of mortgage credit and increased activity from financial institutions.
Half-finished developments and empty apartment blocks that are a current feature of modern-day Spain could become a thing of the past according to the Fitch report. But the report also acknowledges that there is a long way to go before Spain returns to any sort of pre-crisis stability. High unemployment and a surplus of properties means that prices will not rise too quickly. Fitch says that prices may only rise in ‘single digits’ over the next few quarters, indicating that a recovery could yet be another year away.
The Fitch report comes at the same time as a Moody’s Investors Service report that says Spanish house prices will fall for ‘at least’ another year thanks to a dwindling population base and oversupply. Latest figures show that there are roughly 768,000 houses built between 2002 and 2011 that currently sit empty.