The Latest Spanish Property News from Kyero.com

This week Spain celebrated 30 years of democracy since the death of General Franco. Last week, 40 years since the 1968 Eurovision song contest, it was revealed that El Generalisimo rigged the vote to hand victory to Spain, denying Cliff Richard a win with his song 'Congratulations'.

Unfortunately, such official skulduggery has characterised the Spanish property boom since the late 70's. A boom, which according to most sources, is now well and truly over.

This week, the Spanish Ministry of Housing released new property market data for 2007. After quite a bit of investigation, the true slowdown from 2006 to 2007 appears to be between 11% and 16%.

What is frustrating in dealing with the Ministry's data is that it's necessary to strip away several layers of obfuscation in order to arrive at the truth of the matter.

Mark Stuckling's incredulity at a leading Spanish Bank predicting a 2.2% drop in prices in 2008 says it all. There's something missing in official Spain - it's the courage to stand up, honestly appraise the problems and systematically propose workable solutions.

I've said it before - the lack of believable housing market data in Spain is one of the biggest causes of the 'boom to bust' scenario we're suffering from right now. Better informed buyers working from reliable sources of data will stabilise a market and create growth. A lack of such data has caused instability, fear and a suppression of market potential.

Unfortunately, our own house price index - which tracks the advertised prices of housing - isn't much help at the moment. Private sellers, estate agents and developers are not advertising the backstop price that vendors are willing to go to, often because the vendors are prepared to wait for an asking-price sale.

I was interviewed by the Norwegian FT last week on just this problem: Savvy buyers smell opportunity in Spain at the moment - but without first-hand-experience or reliable data to work from, when is the right time to enter the market and at what price? We'll get the article translated when it appears and let you know what they conclude.

On a brighter note, it's refreshing to read of a Spanish judge holding a town hall responsible for planning irregularities. I do hope that justice is served. Speaking of justice, if you've money tied-up with troubled developer, San Jose, make sure you register your interest with Irwin Mitchell as soon as possible.

Sitting outside a beach bar at the weekend - the aroma of fresh sardines on the BBQ, the surf crashing noisily on the pebbles - I found it hard to reconcile that peaceful scene with the turmoil of the Spanish economy.

Spain has a vast natural wealth to offer yet its governments have succeeded in exploiting its resources for short-term gain, rather than cultivating their long-term potential.

What's sad is that Spain's fundamental strengths are as valid now as they ever were - the best climate in mainland Europe, a cosmopolitan and welcoming population and a good transportation and communications infrastructure.

The current property market mess overshadows these facts, but it's a welcome intrusion because the time has come for better financial management and control of the market. I hope that the present government seizes the opportunity to comprehensively clean up Spain's dirty laundry of corruption, inefficiency and bureaucracy left over from Franco's days.

Perhaps they could get started with a phone-call of apology to Cliff Richard?

Martin Dell, Kyero.com