Agents Go To the Wall as House Sales Plummet
House sales in Santa Cruz de Tenerife have fallen by 90 per cent in the last year, leading to the closure of 65 per cent of estate agencies in Tenerife.
The dire picture is similar across the archipelago with sales in Las Palmas de Gran Canaria down 78 per cent, while 58 per cent of real estate agents shut up shop over the same period.
In Lanzarote, sales fell by 90 per cent while the estate agency business collapsed, leaving just 30 per cent of agents still in business.
The average reduction in sales across the islands stands at 70 per cent, which those in the industry say is down to a lack of credit from the banks, increase in the cost of borrowing and inflated prices.
Some experts are warning that the slump in the housing market will be with us until at least 2010.
October 29th, 2008 at 11:00 am
Can you really substantiate these figures? What is the source? I can tell you for sure that the ones relating to Lanzarote are complete rubbish. Sales fell 90%??? Over what period? Just 30% of agents still in business? Absolute rubbish - I know of perhaps a dozen out of something like 150 that have closed.