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

Thursday, 24 April 04:57 (GMT -05:00)


Market Leader Free Newsletter
Your Name:
Your Email:

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 »
 

Settlement between Microsoft and Nokia will be shut this Friday, as stated by Optionova

This week at last will be shut a settlement between Microsoft and Nokia. Programming Organization purchases the Finnish organization's versatile division. "Settlement of the Century", as it is called by a few experts, will be shut on the 25th of April, this Friday. Furthermore, on the 29th of April, Nokia will entirety up trimestral results. Specialists of binary options broker Optionova will tell about it in details. 

Publication date: 23 April 07:04 AM

Apple and Google will battle for the right to be the first in supplying diversions and requisitions, as they assume in Optionova

Apple and Google went on the war way for the vicinity of singular gaming requisitions in their working frameworks. Designers are urged to earnestly advertise faithfulness. It is accounted for by The Wall Street Journal (WSJ) alluding to educated sources. The subtle elements will be told by binary options broker Optionova. 

Publication date: 22 April 10:08 AM

Shares of Google, as stated by Optionova, fell after the production of the quarterly report

Google discharged its fiscal effects for the first quarter of 2014. Markers have been expanded contrasted and the same period a year prior. Notwithstanding, certain variables befuddled gurus such a great amount of, that in the wake of summing up, the shares on the stock trade fell. Why did it happen, examiners of binary options broker Optionova will retell of it.  

Publication date: 18 April 12:28 PM

Specialists of American doctor's facilities started to utilize Google Glass, as it got known to Optionova

 A standout amongst the latest improvements in Information Technology - Google Glass - just about promptly after all vital tests turned into a prominent item in the Internet space. Occupants of numerous nations like to investigate all the upsides and downsides of this advancement, and at exactly that point because of the consistent screening to discover the date of the arranged section into the business sector of unique glasses.

Publication date: 14 April 04:33 AM

Saudi Arabia Destroyed USSR: Can It Destroy Russia?

 

Some Western experts say they have found Russia’s heel of Achilles. The USA thinks the best way to press Putin is to manipulate oil prices since Russia is an export-oriented economy. In particular, it depends on oil and natural gas exports. Therefore, too weak prices may finish the Russian economy, US politicians believe.
 
The experts say that Saudi Arabia may help the USA and the West in general to implement this ambitious goal aimed at undermining the Russian economy, which depends on energy exports.
Publication date: 08 April 11:40 AM

In Optionova they figured out, that in several years Apple will speak to a "transparent" iphone

 The USA IT- goliath Apple affections to patent different developments. Regularly these licenses are never utilized, however the thought stayed for possible later use. Then again, in some cases the organization deliberately enlists that will be utilized within its future overhauls. As of late it got realized that Apple needs to get records on the transparent Savvy. Examiners of paired alternatives intermediary Optionova will tell the subtle elements.

 

Publication date: 02 April 08:29 AM

Sanctions Against Russia and Consequences For Ruble, Dollar and Euro

 

The EU promises to impose tough sanctions on Russia, thereby following into the USA's steps. The leaders claim Russia will have to pay for annexing the Crimea, which used to be a part of Ukraine. These sanctions are promised to be divided into several packages and rounds to introduce them gradually. The ultimate goal seems to be a complete breakup of all the economic and political relations with Russia.
 
Market Leader and Masterforex-V Academy tried to figure out the possible consequences of these sanctions for the involved economies and their national currencies.
 
Publication date: 28 March 06:38 AM

As it turned out by Optionova, Google will secure Gmail clients from the security administrations and spies utilizing extra encryption

  

Google normally upgrades its email administration Gmail. This time, the Internet giants protected its clients from the security administrations. To build security, the whole trade of letters was exchanged to a protected HTTPS- convention. Unapproved persons have no right to gain entrance to Google's servers to the conveyance. About the preferences of this strategy will let you know about the investigators of double choices by the representative of Optionova. 

Publication date: 27 March 05:38 AM

George Soros on Ukraine, EURUSD Prospects

 

It seems like the entire world is currently watching and discussing the situation around Ukraine and the Crimea (which was recently joined the Russian Federation after the local referendum).
Publication date: 24 March 10:30 AM

EU Abandons South Stream, Consequences For Europe, Russia and Natural Gas Futures

 

It is common knowledge that the EU has always complained about the South Stream, long before the Ukrainian crisis. These complaints are based on Europe's desire to preserve its energy independence and to get cheap (or almost free) energy sources from outside (since there are no domestic energy sources).
Publication date: 20 March 12:43 PM