PROPERTY IN SPAIN
As anyone reading this Blog will know, I have been pessimistic about the Spanish property market for years now. Indeed, I was writing about the on-coming property crash in Spain and the UK back in 2005 – when it was blatantly obvious to me that the property market in both countries was overheating.
Since then, I am afraid that I have remained consistently pessimistic about the Spanish property market and any prospects of a short term recovery. This is despite the Spanish government’s rather unconvincing attempts to talk the property market in Spain ‘up’.
That is not to say that there are not excellent Spanish properties on the market. There are! In fact, there a lot of superb bargains, which more than justify buying a property in Spain, now. Some, without doubt, are also excellent, long term investments.
However, this has nothing to do with any mooted ‘general’ recovery. Indeed, anyone who bought Spanish property at the peak of the market between 2006/7 is likely to be regretting having done so (for financial rather than lifestyle reasons) for some time to come.
But what, you may ask, do the Spanish themselves think?
After all, if anyone knows the reality of the current situation it will be them – rather than some expatriate writer – albeit one living in Spain! Equally, the movement of markets (as we saw during the boom) is as much about sentiment as the facts.
So what is the sentiment in Spain when it comes to the Spanish property market?
Well, a survey came out a month ago – that I think is very interesting and worth analysing. It gives the Spanish ‘take’ on the Spanish property market and, I think, it has real value. It is in Spanish with clear pie charts and, if you read Spanish, you can see it here.
The survey was done by Basico Homes, which is a Spanish property portal (in whom I have no financial interest). This is what they came up with:
To the question: ‘is this a good time to buy?’ the response was:
70% = no
13% = yes
To the question: ‘are you interested in buying a property? the response was:
33% = no
30% = yes
20% = not for a long time
To the question: ‘what do you think will happen to prices over the coming months? the response was:
53% = prices will drop a little
30% = prices will drop a lot
7% = prices will remain the same
3% = prices will rise a little
To the question: ‘if you were going to buy a property now what would be your main problem? The response was:
45% = lack of confidence in the economic situation
36% = difficulty in adjusting to the expense
Interestingly, 37% of the people surveyed also thought that published statistics relating to real estate were lies, had been manipulated or were self-serving! Only 3% thought that they were correct. Wonderful – and strangely reassuring! Indeed, I am sure that this aspect to the survey will strike a chord with people in virtually any country in the world!!
So, there we are – a survey on the Spanish property market done for Spaniards by Spaniards that, to me, has a ‘ring of truth’ – irrespective of the number and demographics of the Spaniards surveyed.
Needless to say, public sentiment can change with the wind (and often just as quickly).
However, one thing that I doubt will change fast is the parlous state of the Spanish economy and, until it does, the Spanish property market will remain deeply troubled and Spanish buying confidence low.
Certainly, I shall be keeping a close eye on the unemployment level. Presently, this is over 20% and, until it drops markedly, Spain will continue to have economic problems – regardless of what is or is not claimed by the Spanish government or anyone else…
RELEVANT INFORMATION
HOW TO BUY SPANISH PROPERTY AND MOVE TO SPAIN – SAFELY
(80,000 words, 327 pages, 26 sections and 9 expert contributors – e-book 14.96 euros)
