Asesores Financieros Internacionales (AFI) forecast that Spanish property will fall 30% from peak to trough and the market will not turn positive until 2011.

The falls are due to a substantial overhang of stock. The total number of new empty available properties reached 830,000 units in June 09.

Hence AFI's estimate that the overhang of stock will remain for a couple more years yet.

This amount includes both city and coastal property. However, it is likely that the city based stock will be absorbed faster and therefore this sector of the market may return postive sooner. Perhaps in 2010.

Equally, the Spanish coast is likely to remain over supplied until at least 2011 and possibly not until 2012.

There is no hurry to buy Spanish holiday property, even with the current touted 50% discounts.