Italy and Spain are Collapsing

According to this in the FT, it sounds like the situation in Spain and Italy is pretty dire:

The Spanish and Italian commercial property markets have all but collapsed with the number of transactions in both countries falling more than 90 per cent in the three months to July as investors worry about the future of the eurozone.

Only three property transactions were registered in Spain during the second quarter, down from 58 deals in the previous quarter. In Italy the slide was even more pronounced, with just two buildings being traded during the period, down from 56, according to data from Real Capital Analytics.

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The total value of transactions for offices, shops and industrial property in Spain was €67m for the second quarter, down 74 per cent from €260m in the first quarter. The inactivity meant Spanish property transactions were below those of neighbouring Portugal for the first time.

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"There is no reality in how to price anything there at the moment. You have eight years of unsold supply sitting in the banks, so how do you put value on anything else?" the person added.