Spanish Luxury Property – What is going on?

As usual, the reports coming out of Spain are conflicting with reality and the vast number of repossessed houses in Spain is distorting the market considerably. No one seems to know what is going on and the recent National Institute of Statistics report suggest a drop in prices of just 7%, which is – at best – laughable. Even the banks admit they do not know exactly how many properties they hold and are slowly drip feeding them into the system at a rate that will prevent the market from collapsing completely. Unemployment is still officially around 18%, and the GDP shrank by 4% (officially) so goodness knows what the real figures look like.

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