Spanish unable to afford property despite rock-bottom prices

Last year, over a sixth of all purchases of Spanish property were made by foreign buyers, according to transaction figures released by Spain’s Ministry of Development.
 Furthermore,  less than half of all the residential property sold was bought with capital drawn down from a mortgage, as wealthy investors took advantage of what were perceived as rock-bottom prices.
However, new research reveals that for the average Spanish family, things are quite different when it comes to buying a home. The data shows a large disparity between average incomes and the average cost of residential property across the country
In general, property market analysts state that the ideal ratio of income to property prices is achieved when the average price of a house is approximately four times the annual disposable income of an average household.
 However, current house prices in Spain are 6.3 times greater than the annual income generated by a typical Spanish household, according to a recent Banco de España report.
Other reports have that figure even higher, with property valuation firm Sociedad de Tasción (ST), claiming that house prices are now 7.8 higher than annual incomes.