Government, Developers and Banks are drawing a common strategy in an attempt to promote Spanish property market abroad, as crucial point. UK and German home buyers are in the spotlight.
The attitude of the Spanish Government is the usual one: To encourage buyers investing in property, especially now that Banks balance sheets are negatively affected by the property crisis. Government and Bank are still in their particular honeymoon. Hopefully this relationship will not be summited since the Government has said that the private problem will not be transfer to the public treasure as it happened in Ireland.
Developers highlight that Spain is a vacation destiny and for that reason homebuyers will come. But, from our perspective, to be a vacation destination does not guarantee home buyers but holiday makers instead. In that case, rental market will be the first option since to buy a property involves a lot of costs apart from the purchasing price.
Legal framework
The commitment of the Spanish secretary is to implement the current legal framework in order to give more legal security to foreign home buyers. This move must be welcomed by UK buyers who are waiting for their situation to be regulated since they were victims of a property fraud a few years ago. From The Spanish Brick perspective, if the Spanish Government regulate their situation it will very difficult to build trust in future buyers whilst thousands of Britons are still crying out for justice.
Conclusions
- The Spanish property crisis is an internal problem that Government and Banks want to relief with foreign buyers and investors. UK buyer, be aware and do not be misled by commercial messages!!!
- Now, more than ever, buyers needs to have the right picture of what is going on in the Spanish property market in order not to regret in a couple of year time. It is likely that prices will dramatically drop in the next couple of years and the property stock is massive so, your dreamed coastal home is not at stake. If you are ready to buy now, buy now. If you are not sure or you expect cheaper prices, we would advise to wait for better bargains.
- To sell the property stock is a must and apparently the only solution that Banks and Developers want to accept. Nobody talk yet about demolishing toxic assets.
By Daniel Talavera of The Spanish Brick