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Is the Spanish property market about to crash?
Kamerynkugou
Posts: 1 Newbie
According to the Times, the Spanish property market is about to burst. This leaves many sellers, buyers and property owners in an insecure position. What is going on? Is the real-estate market in Spain really about crash?
The Telegraph believes that there is no reason for any panic. In Spain the prices of the houses have been rising through the roof since 1997. Luckily, this increase is stabilizing. This leaves the market with more realistic prices than in the past, with advantages for both sides, chances for selling are higher and it will go faster and buyers pay reasonable prices.
According to the Spanish government the property inflation is slowing down from 18.5% in 2003, 17.2% in 2004, 12.8% in 2005, and 9.1% by the end of 2006. The first three months of this year the prices have increased with 7.2%. That is the lowest quarterly increase of the last few years. After the prices have grown with incredible rates in recent years, property prices are finally stabilizing.
The fact that the Spanish property market is over-provisioned cannot be neglected. Therefore there is a possibility that, in some isolated areas, the prices will slightly drop. But there is little chance that this decrease will occur in all of Spain. The prices of the properties in popular areas like the Costa Brava, Costa Blanca, Mallorca and Barcelona will most likely continue to grow because of their value– but more slowly than recent years.
Instead of heading towards an inevitable crash, the Spanish property market is preparing itself for a soft landing. Property owners and buyers around the areas mentioned do not have to fear a sudden depreciation of their properties, since these properties will hold their value in the future.
According to the Spanish government the property inflation is slowing down from 18.5% in 2003, 17.2% in 2004, 12.8% in 2005, and 9.1% by the end of 2006. The first three months of this year the prices have increased with 7.2%. That is the lowest quarterly increase of the last few years. After the prices have grown with incredible rates in recent years, property prices are finally stabilizing.
The fact that the Spanish property market is over-provisioned cannot be neglected. Therefore there is a possibility that, in some isolated areas, the prices will slightly drop. But there is little chance that this decrease will occur in all of Spain. The prices of the properties in popular areas like the Costa Brava, Costa Blanca, Mallorca and Barcelona will most likely continue to grow because of their value– but more slowly than recent years.
Instead of heading towards an inevitable crash, the Spanish property market is preparing itself for a soft landing. Property owners and buyers around the areas mentioned do not have to fear a sudden depreciation of their properties, since these properties will hold their value in the future.
From realestate-dreams.com
tenerife property
mallorca property
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Comments
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When people start to say there is no reason to panic, that almost invariably means there is reason to panic...0
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Kamerynkugou wrote: »From realestate-dreams.com
I assume that you posted this with your tongue firmly placed in your cheek? If not, do you think a website for EA's to sell property is likely to provide an unbiased view?
In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
What I want to know is how does he think up a new name every time?0
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Oh come on, this is blatent :spam:
Look at the text - it's all about how spanish property is still a good buy - when in fact it looks like the shakiest market since, errr, damn I'm no good at analogies, or is it a metaphor?"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Guy_Montag wrote: »Oh come on, this is blatent :spam:
Look at the text - it's all about how spanish property is still a good buy - when in fact it looks like the shakiest market since, errr, damn I'm no good at analogies, or is it a metaphor?
Agree - You lot are a bit slow
this morning if you can't spot a bit of :spam: 0 -
Has Bruno become an estate agent.Wonder what the price of brollies are in Spain?0
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This isn't Bruno's "style""Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Guy_Montag wrote: »Oh come on, this is blatent :spam:
Look at the text - it's all about how spanish property is still a good buy - when in fact it looks like the shakiest market since, errr, damn I'm no good at analogies, or is it a metaphor?
Wouldn't it be a simile? I suppose you could phrase it to use either.Well life is harsh, hug me don't reject me.0 -
Yes, you are indeed right. I was taught that similes pretty much always included "like" or "as", but this is just a variation."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Seems to me that with the huge rise of equity in property in the UK,many have drawn on this to fund Spanish property.Now the BOE are tightening the screws,some will look to getting out of the Spanish market and reduce their debt.Some will be more desperate than others.
I hear the ``re sales`` are becoming harder to shift and an amazing amount of new build is planned to take place.Draw your own conclusions!0
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