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last updated: Sep 06 2010 5:06 PM
- Pedrosa MotoGP Win Overshadowed by Tragic Death
Motorcycle racing endured its second tragedy in eight days Sunday, this time at the San Marino Grand Prix yesterday. Shoya Tomizawa became the second teenage rider to die in the sport when the 19-year-old fell and was hit by two trailing riders during the Moto2 race. Tomizawa’s crash was similar to the accident that claimed [...]
- Spanish Government Wary of ETA Cease-Fire Announcement
The Basque separatist group ETA have announced a unilateral cease-fire but Spain’s interior minister said today that their cease-fire statement is insufficient Interior Minister Alfredo Perez Rubalcaba, in the Spanish government’s first major reaction, said that the statement, released to media on Sunday, is “very far from the minimums” that the Spanish government has laid [...]
- Support for General Strike in Spain Losing Ground
The number of Spanish workers who said they were going to join a general strike over labour reforms set for September 29th has dropped to 9% in August, a dip of six percent from July, a poll published yesterday showed. The survey, published in El Pais, showed the sharp decline from 15% in July who [...]
- Zapatero to Explain Spain’s Mission in Afghanistan
Spanish Prime Minister Jose Luis Rodriguez Zapatero has offered to speak to the Spanish parliament to explain details of the Spanish mission in Afghanistan. As many as 92 Spanish military personnel have died in Afghanistan, where Spain has formed part of the United Nations mission in the country since 2002. The last two Spaniards to [...]
- Brit to be Extradited to Spain on Suspicion of Murder
A British man wanted in Spain on suspicion of murdering his girlfriend has been ordered by a judge to be extradited. Christopher Chittock, 36, of Ipswich, Suffolk, was detained on a European arrest warrant last month on suspicion of killing his girlfriend, Sarah Shields. The body of the 23-year-old woman from Ipswich was found by [...]
- FIFA: Spain and Portugal are “Ideal” Hosts For World Cup
Spain and Portugal boast “ideal venues” for the World Cup and have a strong chance of being elected as tournament host, according to the head of FIFA’s inspection team. The pair have individual experience of hosting major football tournaments but have entered a joint bid to attract the World Cup in either 2018 or 2022, [...]
- ETA Ceasefire Could be Near as Basque Tourism Flourishes
Tourists are strolling on beach promenades and filling outdoor cafes in Spain’s Basque region, where burning cars and screaming police sirens now seem only a distant nightmare. The region received more than 250,000 tourists in July, the highest number in one month since comparable statistics began to be compiled in 1992. Local officials attribute the [...]
- Wanted Russian Nightclub Owner Arrested in Spain
Investigators in Spain have arrested a suspect from Russia in connection with a fire that killed 156 people in a nightclub in Russia in 2009, the Spanish National Police said today. Authorities in Spain arrested Konstantin Mrykhin, who was the commercial director of a nightclub in Perm, Russia where fireworks triggered a fire and panic [...]
- Spanish Summer Road Deaths at a 50 Year Low
Spanish traffic police who are issuing fewer speeding fines to protest a pay cut have been told to cut it out despite there being few deaths on Spanish roads during the summer season since 1962. Interior Minister Alfredo Perez Rubalcaba gave no figures, but says the number of fines is definitely down since Civil Guard [...]
- Zapatero: Workers Need to be Flexible, Like in Germany
Spain’s Prime Minister Jose Luis Rodriguez Zapatero said today that his nation needed to accept temporary pain for a better economic future, but said Spanish workers were often unwilling to be flexible. “All countries make sacrifices today for a better tomorrow,” he told a press conference in Tokyo when asked how he will sell unpopular [...]
- X-Factor Contestants Wreck Marbella Villa
It is not the sort of behaviour likely to impress the boss ahead of the big interview but rowdy UK X-Factor contestants have taken all 15 minutes of their future careers into their own hands by ruining Simon Cowell’s rented luxury villa in Spain. The music mogul was left furious after the wannabes caused thousands [...]
- Budget Deficit in Spain Drops by 48%
Spain’s budget deficit narrowed 48% year-on-year in the first seven months of the year after the government’s austerity measures started working. According to a statement released by the Economy Ministry, the deficit totaled € 25.77 billion, or 2.44% of the country’s gross domestic product. A year ago, the deficit was € 49.8 billion or 4.73% [...]
- Spain: Increase in Warmer Days Compared to Rest of World
Given the impact of climatic extremes on agriculture and health in Spain, researchers at the University of Salamanca (USAL) have analysed the two factors most representative of these thermal extremes between 1950 and 2006 – warm days and cold nights. The results for mainland Spain show an increase in the number of warm days greater [...]
- Telefonica Changes Focus Away from Acquisitions
Spain’s Telefonica plans to focus on developing new internet services and growing its business organically, after nearly a decade of aggressive acquisitions, its chief executive officer said late yesterday. “One of Telefonica’s strategic priorities is to set up a global division to develop and implement new internet products and services,” CEO Julio Linares told journalists [...]
- Britons Arrested After Drug Bust in Ibiza
As many as 24 Britons are being held by police after a major operation against drug traffickers in Ibiza. Officers from Spain’s paramilitary police force targeted organised British gangs who were operating from houses on the Spanish island’s west coast, in the holiday resort of San Antonio. They seized cocaine, ecstasy pills and other drugs. [...]
last updated: Sep 06 2010 6:56 AM
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Corruption scandals, illegal building, demolition threats, land grabs... |
![All News]() |
| Posted by Administrator (admin) on Aug 20 2008 |
| News >> All News |
Can Spain weather the downturn? The Spanish property market has had its fair share of headlines recently. If you were to believe them then the image that comes across is of a country hit by a never ending stream of bad news.
Corruption scandals, illegal building, demolition threats, land grabs, over development, dishonest estate agents, incompetent lawyers, obscene commissions and countless stories of unhappy owners, buyers and investors.
Developers are going bust, estate agents are going out of business and there are bargains for those willing to take a risk with the Spanish property market.
But when you go beyond the headlines a very different picture emerges. Yes, Spain is suffering from the credit crunch, but so are many other countries. Banks are lending less and finance is harder to find. Repossessions are on the increase.
However there is a lot of good news. According to those actually working in Spain in the property sector it is the greedy and the unscrupulous that are going out of business and that can only be good for the property market and those investing in it.
The high end of the market, particularly property in gated communities, connected to golf courses that are well built and have quality finishes are still selling well, according to Paul Rossiter of Carrington Estates.
Although custom from the UK has dropped off there is still keen interest from the Swedes, Germans, Dutch and Russians. For the market to recover it is the quality of the investors and buyers not just quantity that matters.
'There are a lot of speculators arriving who think they can get 30 to 40% off the asking price, but that just isn't happening,' said Andy Welland, who has worked in the property business in Spain for the last ten years. This is a trend seen by many agents. 'I heard of one buyer who viewed a €550,000 property and wanted to offer €350,000, that is not realistic. But you can find good prices, there are deals to be done,' said Rossiter.
Ten years ago Welland witnessed a lot of small businesses like butchers and hairdressers closing down and re-opening as estate agents. He saw the rise - and the fall - of big companies with branches in every town. They came, they saw, they fell by the wayside.
He saw greedy developers asking for mega prices, sales agents earning fat commissions persuading investors to buy multiple properties with unrealistic promises that they could sell before completion.
For developers it was a matter of pile them high, build them cheap. 'People were persuaded to buy beyond their means. Where they should have perhaps bought one or two apartments off-plan they were convinced they could afford five, six, seven, even more,' said Welland.
'I have spoken to five people recently that have lost 30 to 40% because they could not afford to complete. Buying to flip is a very hard game to play. You must be prepared for the worst case scenario and that is to be able to complete.'
Mark Stucklin of Spanish Property Insight agrees. 'The downturn in the market has put an end to speculative herd buying but does not deter genuine buyers who do their research,' he said.
The issue of scandals is being addressed. 'The Spanish government has focused a huge amount of effort on cleaning up the problems associated with illegal building and corruption involving the former mayor of Marbella,' said Daniel Zartesh-Lloyd, operations and marketing manager of Malaga based Duchy Estates.
'The developers who built illegally are currently going through the justice system and properties built without permission are going through a process of negotiation. This does not necessarily mean being demolished,' he added. And as Rossiter points out the land grab issue is confined to one region – Valencia.
The Spanish government is also taking positive steps to make the real estate sector more transparent.
This is confirmed by property consultants Jones Lang LaSalle who's 2008 Global Real Estate Transparency Index shows that Spain is indeed making real progress. Spain is now ranked 16th compared with 18th two years ago.
Dodgy agents are being clamped down on too. 'The Spanish government has got really tough. Officials are conducting snap inspections to ensure that agents are adhering to regulations,' said James Gonzalez, market analysts at Obelisk.
The volume of leads has fallen by around two thirds but the quality has improved. Agents also say they have more time to spend with clients. There is an oversupply of two bedroom, two bathroom properties but not all areas have suffered massive price falls.
Some completed developments are virtually empty but many in Spain are doing fine. 'Certain urbanizations have kept their value very well. What has made Spain so attractive over the years such as climate, beaches and lifestyle doesn't just disappear,' said Zartash-Lloyd.
Last changed: Aug 20 2008 at 12:40 PM
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