Experts from The Economist suppose that real estate prices in Spain are “overheated” by 10%. That is exactly as much as prices may fall in future and thus will grade up to the incomes of Spanish families, reports ee24. For example, when compared with incomes of local families, the highest property overestimation is seen in Belgium (46%), France (27%), the UK (20%), Sweden (19%), the Netherlands (17%) and Austria (16%).
According to the newspaper, Spanish housing was overestimated by 55% in 2010, so the current level is not critical. It is also noted that Spanish real estate fell by 4.2% in the last year and since Q1 2008 ("peak" values) by another 31.6%.
In 2014, the largest drop in housing prices in Europe was recorded in Italy (-4.5%), while Ireland as ranking leader showed increase of 12.5% in the cost of housing during the past year.