will 2012 be the year of the spanish recovery
News Posted On: 29 December 2011
Spain was one of the hottest property markets in the world during the overseas property boom years. Unfortunately to say it was a victim of its own success is a bit of an understatement. Spain crashed harder than most, and now going on for four years into the down cycle Spain has a mountain to climb even to stop falling. Let's look at its chances for 2012.
Spanish property was selling like no body's business. It was one of the first destinations in the world to attract foreign buyers, and one of the biggest sellers at the height of the boom. To meet demand Spanish builders went on a building spree, and in 2006-2008 more properties were built in Spain than in Germany, Italy and France put together.
This is the reason why the Spanish market is still in so much trouble. Most analysts now agree that the market has hit a bottom in terms of price levels, but the massive over development in many areas continues to subdue demand.
Another problem Spain has on top of all the rest is doubts over the consistency of its legal system when it comes to property. Thousands of Brits and those from around the world have lost their homes after the legality of the property or the purchase was successfully challenged, many more have had to pay thousands of pounds to officials who deemed that they had underpaid, and many keep paying and paying and paying in a never ending cycle.
People want to know these loopholes are being closed before they consider buying, and that is before we mention the elephant in the room - the debt crisis. The debt crisis is bad for Europe, but Spain is nowhere near as precarious as say Ireland or Greece, or even Italy. And, again, analysts believe prices have fallen as far as they are going to, and in the areas where overdevelopment isn't a problem, or is less of a problem, demand is beginning to see some solid growth according to agents.
Whether or not we will see the trend spread across the country this year, unfortunately does depend mostly on the EU and how it solves its debt crisis. Now that Spain is in the super-Euro, though we do seem to be making progress to that end. Spanish property is cheap, the Euro is weak and tourism is recovering, so now might well be the time to bite the Spanish bullet.
View property for sale in Spain
Written by Les Calvert+
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