News » An analysis of the Spanish property market in 2009

20-02-2010

An economist from the University of Barcelona Gonzalo Bernardos (Gonzalo Bernardos) believes that this year the number of sales of real estate in Spain is higher than it was last year. In his view, the real estate market will come back to life this year, despite predictions the Government of Spain, which he treated with caution.

As proof, the professor cites a number of reasons that can stimulate the real estate market in Spain:

1. Lowering interest rates on mortgages;

2. The prices of some items, including discounts, approached the level of 2003;

3. An influx of investors;

4. Buyers put off the purchase and rent a home, returning to the market to purchase real estate in the property.

Despite the fact that the official figures suggest that house prices in Spain last year fell by 29%, a professor voiced figure of 20%. Moreover, he says that in the beginning of 2009, sales increased by 25-30% in comparison with the same period in 2008. The main reason for the increase in demand professor sees lower interest rates on loans to almost half - from 6.25% in September 2008 to 3.25% currently. Another positive factor was named growth launching new projects related to real estate in Spain. The number of such projects has increased in the last quarter of 2008, up 7% on the previous quarter otnoscheniya.

In summary, Bernardos said that despite the positive news and forecasts, increasing property prices in Spain in the next two years will not be. Sales growth will progress since 2009 and will reach the usual level by the end of 2010, when the market will form the new price limits, and a fall in real estate prices in the whole of Spain will stop. We also recall that in early March of this year, we wrote about the fact that in Spain negotiated the merger of large regional savings banks. The purpose of such associations (with the support of the authorities of Spain) was the creation of a financial institution with high purchasing power and stability to financial storms. Thanks koservativnoy investment policy of the authorities and strict regulation, most of the Spanish banks managed to survive the first year and a half of the global crisis without major bankruptcies and government intervention.

Conclusion: In spite of the fact that the titles of European newspapers are full of reports about the fall in prices in the property market in Europe, highly liquid and high-end facilities will always be in demand of investors. In the words of Beatriz Corredor, Minister for Housing in Spain - "correction in property prices - this is not a tragedy for objects that have real value." Russian investors who prefer to place savings by investing in real estate today are choosing overseas markets, giving preference to Bulgaria, Spain, the French Riviera and traditional - sites in central London. The fall of the stock market has led to the funds that investors are forced to work in the capital markets of Russia, taken out in order to be embedded in a prestigious real estate abroad, as an object for long-term investment.


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