International property prices in Spain 'not low enough to sell'
International property in Spain is not yet priced low enough to sell, leading to reduced levels of activity, according to Kyero.
The Spanish property expert said that the banks which help control the country's property market are only reducing prices enough to "write off losses without damaging their capital ratios".
In December, Kyero predicted that there would be increase in activity in the European international property market in 2010. This is due to economies recovering at different rates, allowing people to negotiate prices in the nations which are slower to recover.
Mark Stucklin, who produced the analysis for Kyero, said: "At present, banks do not appear to be serious about selling their stocks of holiday homes. If they were, they would be priced to sell, which they are plainly not."
He added that regulations put in place by the Bank of Spain could encourage organisations to lower prices. The new rules mean that any home which was repossessed must have ten per cent of its value written off if it has not been sold after a year, this is in addition to the ten per cent which is automatically written off when it is first taken into the bank's possession.
Written by Charles Mackay
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