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The annual review of the Spanish property market’s performance and summary of forecasts is done (see below ‘2005 review and forecasts for 2006′). As you would expect, the Spanish
The annual review of the Spanish property market’s performance and summary of forecasts is done (see below ‘2005 review and forecasts for 2006′). As you would expect, the Spanish government and other vested interest groups make all the usual noises about ’soft landings’, though there is one refreshingly contrarious report that forecasts sharply declining prices over the next 2 to 3 years. Nevertheless, the ‘expert’ consensus continues to be one of an orderly decline in Spanish property inflation. This was certainly the prevailing view in a real estate conference I spoke at recently, in which one of Spain’s leading economists produced slide after slide of figures showing that Spanish property is reasonably priced given present employment levels and interest rates. But for what it’s worth I believe that prices are already falling, and will continue to fall, for some types of property in some places - especially on the most built-up coasts. As we all know, when it comes to property, it’s always ‘location, location, location’ and this rule applies just as much when it comes to property bubbles.Talking of bubbles, there are some excellent observations to be found in the comments you have been sending in for our Spanish property bubble survey. Well worth a read for anyone thinking of buying or selling property in Spain. Bubble survey results to date: Is there a bubble in the Spanish property market? Yes: 71%
http://www.spanishpropertyinsight.com/spanish_property_bubble_comments_yes.htm
No: 29%
http://www.spanishpropertyinsight.com/spanish_property_bubble_comments_no.htm This month in the forum a discussion about what you need to bring with you when you move to Spain: http://www.spanishpropertyinsight.com/forums/viewtopic.php?t=665 Every year Spanish Property Insight produces a roundup of the previous year’s performance figures for the Spanish property market, and a summary of forecasts for the coming year.
http://www.spanishpropertyinsight.com/spanish_property_market_review_2005_forecast_2006.htm Spanish tax authorities to blitz real estate fraud
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Luis Pedroche, Director of Spain’s Inland Revenue (national agency responsible for tax collection and known as the Agencia Tributaria in Spain) has announced that a blitz on real estate fraud in 2006.
http://www.spanishpropertyinsight.com/spanish_property_news_bulletin_latest.htm#1 Average Spanish mortgage rises to 144,352 Euros
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Figures from the National Institute of Statistics show that the average mortgage loan value rose to 144,352 Euros in November 2005, 15% higher than November 2004. Average property prices rose to 130,761 Euros, up 15.9% on a year before. Markets expect ECB to raise base rates to 2.5%
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The ECB left Euro-zone base (repo) rates unchanged in February, but most analysts expect them to raise rates from 2.25% to 2.5% this Thursday 2nd March.
http://www.spanishpropertyinsight.com/spanish_property_news_bulletin_latest.htm#2 ‘Madrileños’ head for new coasts
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According to the Spanish daily ‘El Mundo’ residents of Madrid - some of the biggest buyers of Spanish coastal property - have started to abandon old favourites like the Costa del Sol and Costa Blanca in favour of ‘emerging’ coastlines in Cantabria, Huelva, Almeria and Murcia. If true, this will put downward pressure on prices in the old areas and upward pressure on prices in the ‘emerging’ areas.p> Spanish property ownership costs rising in 2006
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Estimates from the College of Property Administrators in Madrid reveal that property running costs in Madrid are expected to be 200 Euros per month higher on average than in 2005, and higher in general throughout Spain.
http://www.spanishpropertyinsight.com/spanish_property_news_bulletin_latest.htm#3 Spanish investors turn to Coast of Death after Prestige disaster
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The Spanish daily ‘El Periódico de Catalunya’ reports of an investment-lead real estate boom on the Coast of Death (Costa de la Muerte), on Galicia’s northwest coast around Finisterre. This coastline was devastated by oil spills from the tanker ‘Prestige’ that sank just off the coast of Galicia in November 2002. However the disaster and cleanup operation, now complete, created an extra exposure to the area’s beauty that is now turning into real estate investments, including golf course developments. Spanish Government buying beachfront estates to protect natural environment
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The Minister for the environment - Cristina Narbona - has announced that her department has “reserved” 50 costal properties (fincas) to preserve them from building speculators and help protect the environment. She explained that one of her department’s policies is to “buy beachfront properties and protect them from urban development”. |
