16th April 2007 10:02
The property boom in
Spain that has lasted for a decade has now come to an end. The total number of property transactions recorded in
Spain's property register in 2006 showed a drop of 7.4% from the previous year down from 989.341 in 2005 to
916.103.
Even in Spain’s most popular areas for tourism and foreign investment, unit sales have
plummeted: in Andalusia sales have decreased by 7.3 per cent, Catalonia 8.8 per cent, and Valencia 8 per cent. The
worst hit areas are those with small property markets like Cantabria, Aragón, and the Basque Country, which
have seen property sales falling off by over 15%.
Whilst Spanish property construction has reached an all
time high, demand for new builds in Spain has actually fallen, partly as a result of illegal development scandals,
which have left many investors homeless or facing massive fines. According to nationwide’s figures,
transactions on newly built properties fell by 10.11 per cent to 389,594 units (43 per cent of the total). Resale
property transactions also fell by 4.97 per cent to 526,509 units (57 per cent of the total).
As
confidence in the Spanish propety market fades, many investors are buying property in countries like Turkey and
Eastern Europe where emerging markets promise strong investment potential.
Property market meltdown anticipated in Spain - Rising interest rates
in Europe have caused much recent speculation over the future of the European property market, with many experts
fearing that rising prices will drive investors away from Western European property markets. - 4th April 2007 09:07
Development ban in Spain - The rate of property development in Spain
over recent years has caused concern among local residents. - 22nd March 2007 10:01
Dream homes turned nightmare in Spain - A number of British property
owners in Spain have had their holiday homes razed to the ground because they were in violation of planning laws. - 30th November 1999 00:00
Property slump in Spain - The property market in Spain is tipped to
face a slump over the next few months, bankrupting many estate agents in areas where the property market was
previously booming. - 12th March 2007 10:13
Spain - the weakest link - In the trial of terrorists suspected of
carrying out the 2004 Madrid bombings, it has been revealed that Spain was targetted by Islamist radicals because it
was seen as the most vulnerable of the three powers involved in the invasion of Iraq. - 6th March 2007 10:58
Spain charged with illegally reclaiming properties - The European
Commission yet again threatens to take Spain to the European Court of Justice unless it changes its so-called
land-grab laws by December. - 21st February 2007 10:04
Spain Under EU Investigation - Spain has once again become the object
of the EU Commission’s censure, and has now been taken to the European Court over allegations of backhand
state funding in the energy sector. - 5th February 2007 09:33
Latest Report on Spain's Regional Economies - An investigation into
the ‘Regional Economic Balance 2000 – 2005’ in Spain reports its findings about immigration,
economic growth, and the cost of living across the country. - 29th January 2007 13:46
Riots in Madrid - A clash between rival gangs has escalated into
riots in Alcoron. - 29th January 2007 13:44
