Spain has enough land approved for development to build 4 million homes and an existing supply of residences that will take about 10 years to sell, according to R.R. de Acuna & Asociados.
Asking prices for homes have fallen by an average of about 30 percent during that time, according to a March 1 report by Fotocasa.es, a real-estate website, and the IESE Business School. Home prices will fall a further 20 percent over the next four to five years and land will be sold at an average discount of at least 65 percent, according to Acuna.
There are currently 2 million unsold homes in Spain, the Madrid-based property adviser said in a report published today. In a typical year, there is demand for 200,000 to 250,000 properties, the company estimates.