House prices dropped by 70%
According to Fitch, the house prices dropped by 70% on average since the beginning of the real estate crisis in Spain (2007/2008). Real estate agents had to lower their prices significantly as well. These developments have led to a new market consensus and more transparency on the market.
According to the Spanish National Institute of Statistics (INE) 768,000 houses that were built between 2002 and 2011 are not inhabited. The slowly recovering housing market also reflects the cautious macroeconomic progress in Spain and the willingness of the Spanish banks to loan money, for mortgages for example, at lower profit margins than before.