Here is a concise overview of the housing market trend in Spain over the next year to eighteen months, particularly in the coastal areas including, the Costa del sol and Costa Blanca.

Due to over supply and the drop in demand, property prices are seen to fall over 2008.
The property boom in the last decade triggered a building frenzy especially on the coasts, this led to an oversupply of property especially in Subprime locations, which helped lead to building of new areas slowing down.

The Spanish economy became so dependant on the Construction industry, it now has to re-adjust itself and look to other areas of the economy to make amends.

In the last year, planning approvals in many coastal areas have now come to a virtual standstill; this is largely due to the fact that the Spanish Government has been criticized for over building by the European Parliament.

As Spain is so large and diverse, some areas will do better than others particularly as the downturn takes hold.

It is believed by many that property in coastal areas will slump dramatically, but this is not the case, as the downturn will be fairly short lived and by the end of 2008, prices will start to rise again. So for the first time in a decade buyers will be in the driving seat for a limited time.

Supply will slow down considerably due to no, or very little, new building work and as the pull for many to still live or have a holiday home in the sun; prices will start to rise again.
Those who got a bargain during the slump will then be in the top position once again, when it comes to sell.