Spaniards are not used to housing busts. Since property seemed for so long to be a one-way bet, some still find it hard to grasp that prices can ever fall. Recently 2,000 people spent a chilly night sleeping out to sign up for "cheap" new homes due to be built in the Madrid dormitory town of Fuenlabrada. They could have found lower prices on the internet.rnThe market is dropping fast. Property fairs tout discounts of as much as 60% on new-built homes, or even "buy one, get one free" offers. "All the statistics show a fall," concedes the housing minister, Bea-triz Corredor. Yet pinning down just how big a fall is tricky. Tax-shy Spaniards do notrnalways declare the true selling prices. The government's main index, based on valuers' estimates, shows a 1.3% nominal fall in the third quarter. Most think the true figure is far bigger. The iese business school talks of prices of existing homes falling by 8%.rnPrivate sellers cannot believe that their homes are losing value, according to Fernando Encinar, communications director at idealista.com, a property website. But developers know the game is up. Some deals are being struck at 20% below advertised prices, he says, a fact few developers are keen to broadcast. They do not want people writing off deposits on half-built homes and shopping around for something cheaper.
展开▼
