Real Estate Forums

06-26-2007, 02:27 AM

According to the Times, the Spanish property market is about to burst. This leaves many sellers, buyers and property owners in an insecure position. What is going on? Is the real-estate market in Spain really about crash?
The Telegraph believes that there is no reason for any panic. In Spain the prices of the houses have been rising through the roof since 1997. Luckily, this increase is stabilizing. This leaves the market with more realistic prices than in the past, with advantages for both sides, chances for selling are higher and it will go faster and buyers pay reasonable prices.
According to the Spanish government the property inflation is slowing down from 18.5% in 2003, 17.2% in 2004, 12.8% in 2005, and 9.1% by the end of 2006. The first three months of this year the prices have increased with 7.2%. That is the lowest quarterly increase of the last few years. After the prices have grown with incredible rates in recent years, property prices are finally stabilizing.
The fact that the Spanish property market is over-provisioned cannot be neglected. Therefore there is a possibility that, in some isolated areas, the prices will slightly drop. But there is little chance that this decrease will occur in all of Spain. The prices of the properties in popular areas like the Costa Brava, Costa Blanca, Mallorca and Barcelona will most likely continue to grow because of their value– but more slowly than recent years.
Instead of heading towards an inevitable crash, the Spanish property market is preparing itself for a soft landing. Property owners and buyers around the areas mentioned do not have to fear a sudden depreciation of their properties, since these properties will hold their value in the future.

From realestate-dreams.com

REMAX LV · 06-26-2007, 11:27 AM

Thanks for the market update! Sometimes we get so caught up in our own markets, ie: the Las Vegas real estate and CA real estate markets, that we forget to research what is happening within ither parts of the world. It is great to have that knowledge!

Las Vegas Homes · 06-27-2007, 06:20 PM

Yes, I appreciate it as well! I really have no clude about the Spanish market at all and would not even no where to keep up to date with it

I pretty much keep myself emersed in the Las Vegas real estate market, or at least the national market!

07-12-2007, 02:41 PM

I have read this post before is it real?

raubin · 11-04-2007, 03:13 AM

It has been written that a third of agents in Spain are expected to close this or next year due to the state of the market and 2 thirds of the agents could be forced out by 2014!

Times are extremely bad over here and we are already seeing the affects of this as dozens and dozens of agencies have just shut up shop.

It is reported that the sales have fallen 20% on last year, the real estate industry has now debts of over 1bn euros, 3.2 bn euros has been taken out on loans and mortgages for property in Spain.

There is simply too much supply and no demand, people that are looking to move to Spain have seen the state of the industry and are simply holding back until the right time - leaving the real estate agents to suffer in the process.

It is solely down to the banks / lenders offering 100% mortgages to people that can't pay it back, to people that rip off the banks and take the money and the greedy developers that keep building more and more.

Sellers are very worried and that can be seen as home owners drop their asking prices weekly by thousands of euros, there are some unbelievable bargains now as home owners panic sell.

The market in Spain is not good but it will bounce back stronger than ever !!! (Hopefully!!!)

SEOWolf · 11-04-2007, 07:46 AM

raubin,
It sounds as if our Spanish counterparts are suffering a market slump very similar to what we are experiencing here in the US.

I was wondering if your media is aggravating the situation further as they are certainly doing here by over reporting it on the news.

~VegasMack

raubin · 11-04-2007, 10:48 AM

Quote:

Originally Posted by VegasMack

raubin,
It sounds as if our Spanish counterparts are suffering a market slump very similar to what we are experiencing here in the US.

I was wondering if your media is aggravating the situation further as they are certainly doing here by over reporting it on the news.

~VegasMack

Not only the press in Spain but also the UK as most of the foreign property buyers are from the UK (like me!!!).

You guys are on the news everyday, there is lots of programmes on the situation in the States but yes it doesn't help and it is probably causing more panic than it should.

But what can you do, that's the job of the press!

It is the saddest sight seeing what the global affect it has had on the industry, lets just hope that we all come through it and survive on the other side.

SEOWolf · 11-04-2007, 12:48 PM

I really do see troubling times ahead of us in the housing industry raubin.

We can all take solace in the fact that God never gives us more than we can handle and eventually the real estate market will stabilize BTGOG.

~VegasMack

SpainHomefinder · 12-01-2007, 11:30 AM

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.

Bigtoe · 12-04-2007, 08:11 AM

We are in a global market. What happens in one country ripples around the world.