SPANISH GOVERNMENT PRESS RELEASE 4 MAY 2011
Thursday, May 5, 2011 @ 2:26 AM
You have all read my Press Release in response to the Road Shows - now you can have the pleasure of reading the Spanish Government's Press Release issued today for the Road Show. I will leave you all to digest the contents and make some comments!
They make it sound like such a safe place to buy. Surely nothing can ever go wrong when you buy in Spain - can it??!!??
"Legal Security - One of Spain's Main Strengths"
"Spain’s legal framework regarding urban planning guarantees that any citizen can buy property in Spain with total security"
"Spain’s solid legal framework guarantees that it is safe to buy a home in Spain"
Notice that there is absolutely no mention of off-plan developments and Bank Guarantees. As you can imagine this topic of Bank Guarantees was a main part of our meeting with the Government officials today! We will be giving them a very hard time on this subject between now and the proposed second phase of the Road Shows currently planned for June (but still not confirmed).
They may wish for all the contents of their press release to be true, but just a little premature to be saying all these things now I think!
PRESS RELEASE ISSUED ON 4 MAY 2011 BY THE GOVERNMENT OF SPAIN:
Spain: an attractive destination for real estate investment
• Prices have fallen in real terms by more than 20% on average; even more in large coastal towns where prices have fallen by up to 40%.
• The Government’s economic structural reforms are contributing to the recovery of the Spanish market.
• Spain’s legal framework regarding urban planning guarantees that any citizen can buy property in Spain with total security.
London, 4 May 2011. The Spanish Government presented the evolution of the Spanish real estate market to potential investors in London today. José Blanco, the Minister for Development, and Beatriz Corredor, Secretary of State for Housing, highlighted the recent price adjustment, available housing, and the legislative reforms that have been set in motion alongside the legal guarantees for buyers as the sector’s main attractions for British investors.
This event forms part of an international information tour which the Ministry is carrying out in collaboration with the state company “Invest in Spain”, the purpose of which is to report on the current situation of the Spanish real estate market. As well as the United Kingdom, the Ministry of Development will be visiting France, Germany, Holland, Sweden and Russia in the coming weeks.
The latest data for 2010 indicates that the majority of foreign purchasers of housing in Spain are citizens and investors from the United Kingdom and that Spain continues to be the number one tourist destination for the British.
According to José Blanco, the Minister of Development: “this is an ideal time to invest in Spanish real estate. The figures show that there has been an important drop in prices whilst all the competitive advantages we offer remain: safety, proximity, good weather, quality of life, our first class public services, and the infrastructure which connects our principal tourist destinations and which receives ongoing investment – we have completely renovated our entire transport network. In addition, our secure legal framework, which we are strengthening even more”.
The Spanish economy is beginning to show its first signs of recovery: in the fourth quarter of 2010 Spanish GDP increased 0.6% year-on-year and the forecast for the coming months confirms this trend. The different measures put in place by the Spanish Government to alleviate the economic crisis have contributed to this, and that includes the restructuring of the banking system, the increased flexibility of the labour market and reforms to the pension system.
This situation is reflected in the housing market, which has already gone through a large part of its adjustment and is now close to achieving a balance between supply and demand. The Spanish real estate sector is beginning to see a reduction in residential housing stock and a consequent price alignment.
Beatriz Corredor, Secretary of State for Housing asserted that: “the trend in the evolution of this stock is changing and that confirms that the market is recovering. It is dropping more specifically in the big cities such as Barcelona or Madrid and in tourist areas such as Andalusia and the Canary Islands”. She added: “Our country now has a wide range of real estate at more accessible prices than a few years ago. The prices of free-market housing have fallen by 15.4% on average since the first quarter of 2008, more than 20% in real terms and as much as 24% in certain provinces where there are more holiday homes. Nonetheless, the market is diversified and it varies depending on the area and the type of property. In fact, in some towns such as Torrevieja, Ibiza or Marbella prices have fallen by between 30 and 40%”.
Legal security: one of Spain’s main strengths
Spain’s solid legal framework guarantees that it is safe to buy a home in Spain. In recent years, the Spanish Government has adopted new measures to reinforce this field.
Transparency has been increased by a measure whereby any processes which may render a house illegal shall be publicly flagged in the Property Register. This register can be accessed by everyone who means that any purchaser can access this register prior to acquiring a property to check that there is no risk involved in the purchase.
Furthermore, the mechanisms employed in the fight against corruption in urban planning have been further strengthened. For example, the figure of Public Prosecutor coordinating Environmental and Town Planning matters has been created, and police resources have been reinforced by the creation of specific groups within the police and the civil guard to combat town planning crime. These aspects have been added to the penal code which was reformed on 23 December 2010 and which increased the punishment for this type of crime.
A Land Law is also in force which includes specific clauses aimed at combating town planning corruption; and local regulatory reforms have been introduced which make it obligatory for government members to publicise their assets and interests, and which tighten up the rules governing incompatibilities.