Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 10 December 19:53 (GMT -05:00)



Business And Politics News

Spanish Housing Market Outlook


 

Spain is one of those countries who suffered most from the global financial crisis. It is one of those southern eurozone economies that are on the verge of a major recession. At this point, Spain is the country with the highest rate of unemployment in Europe – almost 25%. As a result, thousands of people start losing their homes as they cannot pay off their mortgage loans anymore. 
 
The Spanish government is trying to restore the economic growth by all means. They are even ready to grant residence permits to those foreigners who will purchase residential property in Spain to the amount of €250 000 or more.  They also bet on the tourist sector. It was decided to extend the working hours for those shops that are popular with tourists.
 
What are the prospects of the Spanish housing market? Let’s have a closer look at the issue.

 

 

 

 
Expert Opinion: Spanish Housing Market
 
Eugene Olkhovsky, Masterforex-V Academy’s leading expert in financial markets, reports that since 2007 (the highest level), the Spanish housing market has dropped by some 30%. Since thousands of people failed to pay off their mortgage loans, their homes were expropriated and put for sale. Therefore, a sharp increase in the supply resulted in lower prices. The average cost of 1 square meter of residential property (apartments) was around €1500.
 
As for today’s situation in the Spanish housing market, experts are at variance. Some of them assume that the weakness is about to be over while other do not agree with them.
 
Foreigners are actively buying Spanish fixed property while the local population is still waiting for better times. Over the last 3 years, foreign purchases have reached the highest level.
 
In 2011, foreigners invested some €4.67bn in Spanish fixed property, which is a 27% increase. In Q1 2012, there was a 21% increase s well.
 
The biggest buyers are citizens of North-European states like Sweden and Norway as well as Russians.
 
 
Another category of foreign buyers include retired people from Australia, France, Cyprus , Ireland.
 
Moreover, the Spanish government is determined to turn Spanish into a heaven for tourists and immigrants thanks to affordable food prices.
 
Crisis Trends: Consequences and Prospects
 
 Since 2007, Spanish financial institutions have expropriated some 300 000 homes from those who defaulted on their mortgage loans.
 
Since, January 1st 2013, anyone who would like to purchase residential property in Spain will have to pay a 10% value added tax.
At the same time, experts say that construction companies will face more difficulties next year.
 
Spanish banks offer mortgage loans up to 25 years at 60%, with a possibility of advanced repayment.
 
In Q2 2012, the investment inflow in the industry increased by 2.55 (y/y).
 
Since the housing bubble burst, the aggregate value of Spanish fixed property has declined by €360bn, which is equal to 35% of Spain ’s GDP.
 
The aggregate amount of transactions in the Spanish housing market has dropped 33% since 2007.
 
The amount of British buyers of Spanish residential property has declined by 64%.
 
Is Spanish Residential Property Worth Investing Today?
 
At this point, the Spanish infrastructure is being developed and reconstructed. In particular, there is a direct train from Alicante to Madrid. Therefore, those who live on the Eastern coast of Spain can reach the capital within several hours. Experts say that this factor may stimulate higher demand for residential property in the region.
 
Still, they discourage foreigners from investing in Spanish residential property in the near future as they expect housing prices do drop 6% more in 2013, even though the situation on the local housing market seems to be improving.
 
They also expect the total amount of unsold housing units to drop down to 500 000 by late 2014. Today’s amount varies between 850K and 900K units. 250K of those units belong to banks.
 
According to Masterforex-V Academy experts, now is a favorable period for purchasing residential property in Spain as the demand is still low and banks need to sell out the expropriated housing assets.
 
Moreover, the eurozone crisis is still underway. It keeps affecting the economies of Greece, Italy and Spain . At the same time, EURUSD has become more volatile.

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

Publication date: 30 November 01:52 PM

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict

According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

Publication date: 25 November 04:05 AM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM

American Sanctions Will Cut Investments In Russia

Some experts say that the next round of anti-Russian sanctions imposed a couple of weeks ago is going to undermine the Russian economy. In particular, they are threatening the investment capital inflow.

 

 
A few weeks after Donald Trump reluctantly signed the new sanctions approved by the U.S. Congress, Russian and foreign investors are still trying to figure out what the actual consequences of this decision are going to be. For now, they seem to have understood enough to be afraid of long-term negative consequences for their existing or potential investments in the Russian economy, which has just started recovering after a 2-year recession.
 
Publication date: 31 August 01:44 AM