Saturday, September 8, 2007

Spain set for Crash

Spain braced for housing market 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.

Posted by cash_buyer @ 07:31 AM (1412 views)
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8 thoughts on “Spain set for Crash

  • A short term economy built on long term debt, a quick dose of reality will be the best medicine for Spain in the long run, how long before the UK ends up reaching into the bathroom cabinet?

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  • To change the subject slightly, the news that town and country are shedding 12,000 jobs can only mean more doom and gloom in the markets next week, I wonder how much longer we will have to wait for some serious action in our own property market?

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  • Where is that news s1 (town & country), as I can’t find it anywhere yet!

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  • Where does this writer get the figure of 30% from?

    Could it be that they don’t think anyone will believe them if they said 50% or 70%?

    The hot climate architecture of the med countries is relatively inexpensive to construct, so with an excess of supply one would expect prices to descend to a very low base from current levels.

    I recently looked at the details of a working vineyard with a reasonably spacious farmhouse attached, in the Douro valley Portugal. The asking price (1.5m euros) was 100 times the operational profit from the vineyard, with little prospect of improving the return.

    I felt I would only be tempted if the price was reduced to 0.5m euros…

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  • tyrellcorporation says:

    UT. My guess is they are marketing the vineyard at well healed Brits, etc. They’ve worked out that the vineyard would really be a style statement, as in ‘I own a vineyard in Portugal don’t you know?’ IMHO very few would actually intend to get out into the fields to try and develop a business. Most people I know who’ve left these shores for the Med have the idea of living a sort of ‘Sexy Beast’ existence of simply drinking Bacardi Breezers for evermore. The reality is that most have to learn a foreign language to get a job or come back a few years later citing extreme boredom and/or a failing liver!

    …I still feel UK HPC will not be homegrown as such but a result of imported negative sentiment and bad news stories.

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  • What if this people ” consolidating their finances” were to re-invest into British property… After all we’re not in Spain and house prices can only go up over here 🙂
    I

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  • “these” people of course

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