Property market crash?

Question

lots of gossip but no real evidence. has anyone got any real evidence of a property market crash in spain?

Answer 1

The company that went bust was a small time builder, the main builders are still going strong although there is a slowdown in property sales and building. The share prices have dropped a little but there is no property crash it is just gossip of the media due to the collapse of the small time builder.

The only rthing i can say is those who are buying property to rent out have to realise that it is  a very copetative market due to the ammount of property lets, there is no guarentee that property will be let.

Answer 2

Yes, there is real evidence of a crash - or coming crash. Read The Economist Magazine April 26th edition article "The Pain in Spain"

Look out...its coming, what goes up, must come down.

Answer 3

Have a look in the window of any Spanish Estate Agent, you will see massive price reductions, special offers, once only deals, if this isn't panic selling I don't know what is.

Spain is dead for ex-pats, who are now going to south america where the £ and Euro is worth three times it is in Spain.

Answer 4

Go to Kyero.com and download their Spanish Property Index this will give you all the info you should need.

Speaking personally as an estate agent, I can honestly say that the sales  Almeria are slower this year than in previous years

Answer 5

I do not think than there is any real slowdown. A number of property companies fell on 'la Bolsa' . This id because they are (still) overvalued.

The property market always falls back in the Winter because the foreign buyers are not buying until the good weather comes.

There has been a slight 'blip'  in the market but just wait until the Baby Boomers retire in 4 years time! the market is going to explode again.

Answer 6

Personally I believe property market has crashed all over the world due to abusive prices. Of course a touristic country like Spain is being terribly afffected specially in the south coast. Also one has to keep in mind that other much cheaper destinations (Morocco, Turkey, East European countries, etc) are also in the tourism competition. Nevertheless one has to consider plenty of issues when buying a property abroad such as: political stability, security, medical attention, infraestructure such as roads, services, etc etc.

The good locations such as Marbella no matter what is being said/written will not get cheaper. Now the property market has slowed down in Spain but it will recover within couple of years.

Answer 7

The only answer I have is that I have 3 colleagues in Real Estate agents in Andalucia (Huelva, Marbella and Ayamonte) and they say the market is dead and property prices are dropping, normally busy agents are getting no walk ins and few internet enquiries. They all say it is poor building quality and over supply

Answer 8

In many areas there are many new builds still sitting empty, all around me is property that been up for sale for 12+ months, just the other day there was a report in the spanish press about the fall in sales....

Procosta, the Association of Builders and Estate Agents in the Vega Baja and Torrevieja region. The article is telling of the dire situation here, figures for the last six months show a decline of holiday home purchase, down some 70%. The association blame, in part, the poor image of the area, planning scandals, over exagerrated crime reporting amongst other things. Hundreds of thouands of jobs could be in danger according to the report that was written in the INFORMACION spanish newspaper, for the first time in 15 years, the unemployment figure for the region has hit 11,000, the drop in spending power is having a knock on effect in other areas. Many properties used to be snapped up as soon as plans were on display, now that's not the case with many builders completing builds and no purchasers lined up, these properties sitting on the books for months in some cases. The association have suggested that the soon to be elected local mayors tackle this by;

1. Releasing more land for development (??)

2. Fight crime with more police

3.Ensure plots of land for developemtn do actually have water, electricity etc in place, you might think this is logical, but there are many areas where there is no water supply to completed properties and the electricity is builders supply not mains....

4.Stamp out corruption