It’s not only the basements that are selling as bargains in Spain – the government proposes to sell 15,000 homes at knock-down prices.
The homes were all repossessed as Spain’s economy and property market crumbled over recent years.
The Eurozone debt crisis has pushed the nation to the brink of bankruptcy, and as part of a deal to bring down the budget deficit from 7.1% to 3%; the government is triggering a property fire sale.
The move won’t please expats who already suffering negative equity and cannot sell their homes to move back to Britain, as the flood of cheap homes is likely to push prices down even further.
Spain is home to around 500,000 British expats – many of whom sold up in the UK to retire to a warmer, cheaper country to see out their retirement.
Stagnating economy
Instead, many are facing poverty on a fixed income in a stagnating economy with a jobless rate of more than 25%.
The economy trudged through a sixth quarter in a row of negative growth, proving beyond doubt that the nation is tightly gripped by recession and will remain so for many months to come.
Among the 15,000 properties on the market are 10 the Spanish government considers have unique appeal.
One is a mansion on the capital Madrid’s main central avenue, Paseo de la Castellana, which was the official residence of the Secretary of State for Security.
Another is a massive, rolling 35,000 acre Andalusian country estate.
Spanish property expert Mark Stucklin said: “The headline properties in this huge portfolio are absolute gems, but some of the rest are shockingly bad.
Unfinished developments
“Those with a historical or special interest attached to them will no doubt fetch a good price. Wealthy foreign investors are always looking for a bargain and they will find plenty to whet their appetites here.
“The trouble with this sale is everything will go for a rock bottom price or not at all.”
Indeed, property prices in Spain are still in freefall and show no sign of slowing their relentless dive into oblivion.
Average house prices have plunged by between a third and a half in the past five years, new building has come to a standstill and many towns and cities are scarred with swathes of unfinished developments.
Builders have gone bust, leaving the banks and government holding massive debts against property assets worth a fraction of their price during the property boom that gripped the country until 2008.
