Comments on: Real Estate Slowdown in Spain, Half of Agents Close Shop http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/ Real Estate Blog, Mortgage, and Development News Sun, 21 Mar 2010 17:00:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: barcelona apartments http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/comment-page-1/#comment-307965 barcelona apartments Mon, 08 Dec 2008 16:00:18 +0000 http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/#comment-307965 I own a real estate agency in Spain and I would not, sadly advise anyone to buy a property. Wait until may, at least. I own a real estate agency in Spain and I would not, sadly advise anyone to buy a property. Wait until may, at least.

]]> By: Sebastiaan Kemna http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/comment-page-1/#comment-254676 Sebastiaan Kemna Thu, 04 Sep 2008 13:06:51 +0000 http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/#comment-254676 We are lucky in Mallorca (Majorca) insofar as we are not effected by trends on the Mainland. So far, prices are maintaining there levels although we are seeing some flexibility in the resale market. Most of those however are due to a low GBP rate which allows the British seller to drop their price without effecting their GBP return. Neither have we had the over-development in Mallorca as can be seen on the peninsula which further insulates from the downturn. That said, in the foreign media there is often no distintion made between Spain and Mallorca and believe me, they are different. All in all, it is harder to close deals but at least there is still a market. Agree with the above comment ... stop thinking as and investor and think of the fact that you will own a beautiful holiday home on a paradise island! We are lucky in Mallorca (Majorca) insofar as we are not effected by trends on the Mainland. So far, prices are maintaining there levels although we are seeing some flexibility in the resale market. Most of those however are due to a low GBP rate which allows the British seller to drop their price without effecting their GBP return.

Neither have we had the over-development in Mallorca as can be seen on the peninsula which further insulates from the downturn. That said, in the foreign media there is often no distintion made between Spain and Mallorca and believe me, they are different. All in all, it is harder to close deals but at least there is still a market.

Agree with the above comment … stop thinking as and investor and think of the fact that you will own a beautiful holiday home on a paradise island!

]]> By: Emma Haller http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/comment-page-1/#comment-226500 Emma Haller Wed, 02 Jul 2008 15:10:37 +0000 http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/#comment-226500 The Spanish government are not making any incentives for people to buy properties. Currently no one could afford the incredible fees involved in both buying and selling. greed is a huge factor in the spanish property market. Think like a citizen and not about profit and you will find that there is a happy compromise that can be made. The Spanish government are not making any incentives for people to buy properties.
Currently no one could afford the incredible fees involved in both buying and selling.
greed is a huge factor in the spanish property market.
Think like a citizen and not about profit and you will find that there is a happy compromise that can be made.

]]> By: West End Estate Agents http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/comment-page-1/#comment-170419 West End Estate Agents Thu, 21 Feb 2008 19:53:53 +0000 http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/#comment-170419 It's not easy It’s not easy

]]> By: Mark Harrison http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/comment-page-1/#comment-154042 Mark Harrison Thu, 31 Jan 2008 21:10:45 +0000 http://www.therealestatebloggers.com/2008/01/31/real-estate-slowdown-in-spain-half-of-agents-close-shop/#comment-154042 There's little doubt that Spanish property was massively overpriced compared to historical norms, but the fall was happening BEFORE the credit crunch spillover. Since the end of the Second World War, average property prices in Eurpope have cycled between about 3x and 5x average incomes. Current UK prices - 7x average incomes Current Spanish prices - 14x average incomes Our take is that it was purchasers from elsewhere in Europe, particularly the Boomer generation in UK and Germany, that had driven up prices, buying second homes in Spain as retirement properties. (Think of the South Coast of Spain as Europe's Florida.) We see a couple of key issues caught Spanish market hard over the last 12 months: 1: Germany signed a "tax information treaty" with Spain. That means that the German Government now get information about German owners of property in Spain direct from the Spanish Government - and Germany taxes that kind of thing :-) 2: The accession of other countries, particularly Cyprus to the EU, has meant that there is a lot more competition for retirement homes PLUS Cyprus has a property law system modeled on the British one, so works the way UK buyers would expect. Example difference: In the UK, like the US, when you die, you choose who you leave your house to. In Spain, you have no such choice. Spanish Law mandates the split between your surviving spouse and your children. The UK boomers are beginning to realise this, and thinking that maybe Spain isn't so great a place for Intergenerational Wealth Transfer. There’s little doubt that Spanish property was massively overpriced compared to historical norms, but the fall was happening BEFORE the credit crunch spillover.

Since the end of the Second World War, average property prices in Eurpope have cycled between about 3x and 5x average incomes.

Current UK prices – 7x average incomes
Current Spanish prices – 14x average incomes

Our take is that it was purchasers from elsewhere in Europe, particularly the Boomer generation in UK and Germany, that had driven up prices, buying second homes in Spain as retirement properties. (Think of the South Coast of Spain as Europe’s Florida.)

We see a couple of key issues caught Spanish market hard over the last 12 months:

1: Germany signed a “tax information treaty” with Spain. That means that the German Government now get information about German owners of property in Spain direct from the Spanish Government – and Germany taxes that kind of thing :-)

2: The accession of other countries, particularly Cyprus to the EU, has meant that there is a lot more competition for retirement homes PLUS Cyprus has a property law system modeled on the British one, so works the way UK buyers would expect.

Example difference: In the UK, like the US, when you die, you choose who you leave your house to. In Spain, you have no such choice. Spanish Law mandates the split between your surviving spouse and your children. The UK boomers are beginning to realise this, and thinking that maybe Spain isn’t so great a place for Intergenerational Wealth Transfer.

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