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. 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. “Land continues to be the biggest threat for Spanish lenders,” Fernando Rodriguez de Acuna Martinez, a partner at Acuna & Asociados, said by telephone yesterday. “An important part won’t be developed in the next decade, which means the price of that land today is just symbolic or zero.” Spanish lenders have taken on 298.3 billion euros of loans to developers and real estate assets onto their balance sheets to cancel debt after a decade-long property boom ended in 2008, according to data published by the Bank of Spain. Since the market’s peak in 2007, the average price of urban land has dropped 36 percent to 182.5 euros ($240) a square meter, according to data from the Ministry of Infrastructure. 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.
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