Saturday, September 8, 2007
Spain set for Crash
Spain, the site of Europe’s biggest property boom of recent years, is bracing itself for a price crash of up to 30%. The Spanish market has been slowing down since last November but the fall is starting to gain momentum. Hundreds of estate agencies in the popular resort areas of south and south east Spain are closing. Over 250,000 Spanish properties have British owners. The slowing of the UK market and the expected rise in mortgage rates may mean a mass exodus from the Spanish market by British owners looking to consolidate their finances. The last decade has seen a property building boom in Spain which has boosted the national economy. A thriving construction industry and revenues from property taxes has made Spain one of the best performing economies of Europe in recent times.