Hi my name is sandra and i have bought no 7 in manzana 5.  Last night as i was watching the evening news the headlines came as a big surprise.  It stated that 2 billion had been wiped off the european markets due to A slow down in the spanish property market.  It was on the irish news and i was just wondering if this would effect our development.  I certainly got a scare as our quad will not be ready until next march.  Will it hold its value or are prices going to drop.  I would like to hear some opinions on this.

I have copy & pasted this from the general forum from member Rolandsbb which was posted very recently. If you go to the general forum "buying property" then look under ... consider this before buying in Spain there is a discussion taking place on this matter!!!!!!! Tina 

  This is a copy of part of a Newsletter I received today from Barclays Bank 

 

Spain economy booming

Latest statistics from the Spanish government show that with economic growth at 3.9% (a six-year high) and a budget surplus, investors in property can foresee a healthy future, with 700,000 new jobs in the country, increased demand for homes and growing property rental opportunities. ¹

Spanish government announces property figures

A national average rise in property prices of 9.1% has been reported by the Spanish government. Central and northern Spain did best overall, with Lugo in Galicia top of the table with an 18.5% annual rise. Jaen, Seville and Castellon were also among the best performing provinces. ²

Younger buyers look abroad for first home

Some 40% of younger people would consider an overseas home as a first step on the property ladder, according to insurance company Hiscox. Respondents to their survey cited high UK house prices and a complicated housing market as their main reasons for looking abroad for a first home.

RICS 2006 Overseas Property Report  also had a positive result for Spain

So the opinion seems to be from the stats that Spain is still a good option if you use the right people 

This message was last edited by tinasolera on 4/25/2007.

I FOUND THIS ON GENERAL FORUM ASK ME IF IM BOTHERD

Spanish shares plunge on property fears

Tuesday, 24 April 2007 19:57

OK........................ ARE YOU BOTHERED???????

tinax

p.s Dub to reply to your question the penthouses from what ive read on another thread in this forum have been valued very recently higher then what they were purchased at. I wouldnt have thought that your quad would lose any value.. I had a private mail of an EOS member saying that their property was valued at less then expected but still valued higher then the purchase price. Iain what do you reckon?

Well if it all goes wrong ive got a plan B... the kids wanna move to Butlins Minehead.... , oh well any dream will do.

This message was last edited by tinasolera on 4/25/2007.

HI Tina

I think we are ok in the murcia region if we had bought elswhere in spain i would be worried.

to much is going on in murcia i feel safe there i dont think we will make a fortune on the property and dont think we will lose either.

my quad should of been 204.000 i got it for 196.000 and now they are 209.000 so i have made 13000 in 9 months.

I Think there will be maybe another 2/3 price increase so when i cover the iva and fees i will feel like it was a good move.

My agent sold a quad today  a few doors up from me im happy they are still selling.

Bye for now

Iain

This message was last edited by alex875 on 4/25/2007.

Just had a browse through some spanish mags in town and found an article on buying property in Murcia (Mag dated May07). Anyway the article could not have been more complimentary about the Murcia region and altho i had to skim the article as my kids were pulling the shop apart i got the strong impression it was trying to say that Murcia is extremely resiliant to any down turn in the market especially because of all the latest infrastructure devlopments.. airport, new hospital etc alongside other reasons as well.

Anyway lets not forget its only a slow down in the market and only really affects investors who are trying to make quick cash... that gravey train has left the station!"!!!!

In the last 10 years the spanish property market has risen 270% compared with the UK of 240% (obviously from a higher base). The gravey train wasnt going to go on forever was it???????

Adios

This message was last edited by tinasolera on 5/6/2007.

Nice find tina

spain is a safe bet its number 1 in europe we will make money but not loads if its money we want then we should be investing in other areas of europe.

im looking at buying beach front apartment in egypt for 20k and other places now i dont think it will go up like spain has but i bet you its doubled in 3 years.

im happy with spain for me and my family like i said in my last post so many things are going on in murcia.

anyway got to go arsenal have just scored come on MAN UTD.

Iain

Found this article, copy and pasted it for you!!!!!

The recent sharp fall in the value of some real estate investment companies on the Madrid stock market seems to have come to the delight of sections of the British Media.

EDITORIAL COMMENT -

Official numbers show that real estate prices continued to increase in Spain last year, but at 7% growth - down from 12% in 2005, and so it is completely correct to speak of a slow-down in the market. Quite obviously this will be more of note in some areas compared to others, but as yet, there is no evidence at all of any bubble bursting and any rapid change in real property values. Small corrections in the selling price of real estate in some of the larger cities have been seen with falls registered in some places, but certainly no bursting bubble.

The same cannot be said, however, about the trading value of some real estate investment companies, and one in particular set off the current reports of ‘ex-pat panic’ now being seen in the British Press.

The Astroc company, owned by Enrique Bañuelos from Valencia was the darling of the Spanish stock market index in 2006, but lost two thirds of its value over a four day period last week, set off by reports that one shareholder Amancio Otega, well known as the owner of the Inditex company and the Zara brand, was to move his investment elsewhere. Bañuelos himself admitted that his company could be over valued. Two weeks ago it was trading at 45 € a share, now it’s around €16, but even that equates to a forward price/earnings multiple of 20 times.

Talk in the British press over the past week has been misleading, or at least many of the headlines on the subject have been. Let’s hope a new story comes along to grab their attention, and that the Spanish real estate market ends up, as most experts are predicting, with a gentle landing in this time of more expensive mortgages and increasing interest rates.