The ongoing Spanish economic crisis has caused a massive decline in real estate prices, a new study found.
Spain’s real estate market saw a flurry of building activity prompted by rising real estate prices and property speculation up until 2007, when transactions came to a near standstill, according to researchers from InternationalLiving.com.
The European country now has an estimated two million units worth of excess residential property.
Spanish banks had been slow to offload the properties, which came into their possession when struggling developers proved unable to repay loans.
The banks now need an estimated $77.4 billion to survive and remain in business.
The Spanish government has officially requested a bank bailout from the European Union. And so the financial institutions are now attempting to liquidate as much of their inventory as possible.
The move is good news for overseas buyers who can now secure Spanish real estate for a fraction of its peak prices.
