Monday, Aug 11, 2008
And it's worse in Spain
Motley Fool: House prices have crashed by 35% in Spain
If you think the British property market is in a mess, then a quick trip to Spain will put things in perspective.
Property prices have fallen by a crushing 35% in the last year, four times faster than in the UK, and haven't stopped plunging yet. This spells disaster for an economy where investment in housing is worth 10% of GDP.
And it's going to get worse. We were awestruck by the scale of construction along the coast, massed ranks of half-built villas and apartments squeezed into every dusty hollow and ditch.
Who is going to shell out for all this whitewashed concrete, even at today's knock-down prices?
The Spanish property market bubble has been well and truly pricked, but sadly too late to save the beauty of the country's coastline.
Posted by little professor @ 06:02 PM (661 views) Add Comment
6 Comments
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1. Andy said...
Just goes to show that being in the Euro Zone is NOT a solution to the crisis. Look also at the Irish fiasco.
2. plato said...
I expect there are a significant number of holiday makers over there at this moment bathing in strong denial as well as the sea. I said originally that this would be the 'Mother' of property crashes and I still hold to it.
If you escaped the damage in the UK by selling up and locating in Spain. Well! there has actually been no escape. Hopefully you bought with cash and the project was completed.(Title Deeds???) The massive construction was equally matched by corruption. All you can do is hold tight and wait (and pray).
There is always the concept of having at the very least, sunny days as consolation, but when that savage, hot and unrelenting sun beats down for 5 months every year,the reality is not like the dream.
3. Whostolemyendowment said...
Fewer tourists, higher flight fares, and a falling market....another perfect storm.
They paved paradise and put up a parkin' lot
With a pink hotel, a boutique, and a swingin' hot spot
Don't it always seem to go
That you don't know what you got till it's gone
They paved paradise and put up a parking lot
4. Landedgentry said...
I'd visit Spain and possibly even live there is all the Brits came home.
5. deepak said...
Thanks on an optimistic note. 50% atleast in Spain is the fall of Asking price.
Selling price even further
6. enuii said...
Being a regular user of someone else's property in Spain I can confirm all the above with the added observation that many properties in Murcia have had the old SE VENDE signs up for 3 years. I imagine that the lucky ones will be the people who manage to sell as many properties are only suitable for the tourist market and are totally unsuitable for living a normal life.