Real Estate Forums

Landwatch.com · 12-18-2007, 03:28 AM

That is something that we weren't anticipating. Last week itself, I had read an article on Spain's real estate. However, it said that the situation is really good and it is the best time to invest. Even the US real estate is going through a rough patch. The US market is in a bubble situation. The only option we all have is to wait and hope for the best.

SpainHomefinder · 03-09-2008, 06:20 PM

Quote:

Originally Posted by SpainHomefinder

Yes - Spanish real estate is in a bad way and so in fact is Spanish tourism.
The two issues are related because they are caused by the same problem of gross over-supply.

Government-issued statistics cite 3 - 4 million unoccupied properties with a further 1 million approx. unsold and under-construction.
I have been watching this whole incredible scenario unfold, and writing about it, for almost 4 years.
The silly part about it all is that it happened before, for different reasons, in the early-90's. On that occasion Spain devalued the peseta within the EMS and the economy recovered faily quickly.
They cannot do anything like that now because of the Euro.
As I see it the Spanish economy is in for a troubled future. How on earth can they sell off or otherwise occupy 5 million properties?

I cannot post URL's because I am a new member but you cut and past to read the articles -

moraira-info.com/Articles/Spanish-Economic-Recession.htm
moraira-info.com/Articles/Spanish-Real-Estate-Crash.htm

Otherwise click on my Moraira Advertising and Information Portal in the signature.

Personally it's all rather sad because I have lived in Spain and been involved in real estate, one way or another, for 36 years.

3 months on and nothing has changed much. There have not been as many foreclosures as expected but still nothing selling.
We have just had the results of the Spanish elections and the socialist party PSOE go back in with a reduced majority. Not good news - we need a change!
Pehaps your Hillary will make it, prove to be another Margaret Thatcher and, together with First Man Bill, turn it all around and change the world.

SpainHomefinder

SEOWolf · 03-10-2008, 08:59 AM

Quote:

Originally Posted by SpainHomefinder

3 months on and nothing has changed much. There have not been as many foreclosures as expected but still nothing selling.
We have just had the results of the Spanish elections and the socialist party PSOE go back in with a reduced majority. Not good news - we need a change!
Pehaps your Hillary will make it, prove to be another Margaret Thatcher and, together with First Man Bill, turn it all around and change the world.

SpainHomefinder

I am not sure that Sen. Hillary Clinton is the answer SpainHomefinder. Although she is clearly the better choice in the Democrat party for president she has cosponsored some legislation that will adversely affect the real estate industry here in the United States according to my wife’s research for her real estate blog.

My wife says that the Bills the Sen. Hillary Clinton has cosponsored are not nearly as damaging to the real estate industry as Sen. Barack Obama’s STOP FRAUD Act they would still “do extensive damage to an already crippled real estate industry”.

As soon as Rhonda posts an update on her blog I will post notice here in PREN.

~Mack

San Diego Real Estate · 03-10-2008, 12:51 PM

Big Toe I couldn't Agree more...

At this point it appears that the overall Real Estate Markets around the world are all in a major adjustment period. Here in the US especially in our local San Diego market we are starting to see investors coming back in the market of which is a good sign!

You know the cardinal rule buy low and sell high!

SpainHomefinder · 03-10-2008, 06:19 PM

For sure we are looking at a global real estate adjustment period but the isuue is variable from one place to another.
The UK has a housing shortage. If 1 millon new homes were created overnight it would resolve the problem but this won't happen, even in 10 years. Quite simply there the problem is the lack of land for new building.
In Spain the situation is completely the reverse and there is actually a housing SURPLUS. In both countries it is the first-time buyers who are suffering because they simply cannot afford to buy because of the high cost.
In Spain they cannot even afford to rent because the suplus properties are either in the wrong area or too luxurious as they were built as holiday homes.
In recent weeks another scandal has emerged. The Regional Governments have started DEMOLISHING new buildings because alleged illegal buildinging licenses were issued by local town halls.
Additionally dozens of local officials have been arrested and charged with corruption (basically accepting bribes or other rewards in exchange for urbanistic "favours") and 100's more are being investigated.
I have written articles about the demolitions. I am still not allowed to post URL's so please see the following post or copy and paste below -
moraira-info.com/Articles/Almeria-Demolition.htm
The UK is still Spain's strongest market for holiday home investors and the UK press, of course, are have a great time with all this.
First we had "bubbles bursting" now there are British pensioners whose house was pulled down around them.
One way or another Spanish Real Estate is really going through a rough patch!

SpanishHomeFinder

SpainHomefinder · 03-10-2008, 06:23 PM

Right - that was my fifth post. Here is the link -
The Vera (Almeria) Demolition
SpanishHomeFinder