Archives for 2008

December 9th, 2008

I get criticised for only reporting on the 'bad' aspects of the Spanish property market. I'm regularly asked, why can't I include more news articles with a rosier outlook? In reply, I normally make 4 points: I don't write the news ...

Continue reading Unbridled Optimism About Spanish Property

December 9th, 2008

One small island nation on the northwestern edge of Europe is counting its blessings. Like Iceland, its banks threw cash at investors eager to buy businesses and properties across the European Union. But the luck of the Irish is that they joined the euro, sealing them into one of the most ...

Continue reading Should Britain Reconsider Joining Euro?

December 8th, 2008

The European Parliament (EP) recently released the first draft of another damning report on Spanish ‘land grab’ laws and urban planning practises that threaten property rights and the environment. There were also calls from the EP for a moratorium on all unsustainable new developments, compensation for victims of Valencia’s so ...

Continue reading Spain Called to Account over Land Grab

December 5th, 2008

ECB cut the cost of borrowing in the 15-nation eurozone by a record 0.75 percentage points to boost business investment and household spending. The ECB cut the cost of borrowing in the 15-nation eurozone by a record 0.75 percentage points to 2.50 percent as the eurozone faced its first recession while ...

Continue reading ECB Cut Interest Rate by 0.75%

December 5th, 2008

Spanish property group Habitat filed for creditor protection owing €2.3bn ($2.9bn), amid signs that last-ditch efforts to rescue other developers were also in trouble. The Barcelona-based group, created by a highly leveraged takeover two years ago, said it had taken the decision to "protect as best as possible the rights of ...

Continue reading Spanish Developer Habitat Enters Administration

December 4th, 2008

A few years ago, they paved over much of Spain with concrete. Now it is Spanish property companies that are piling up in the skip. Most of their struggles are concentrated in the highly geared but unlisted companies that make up 90 per cent of the sector. But even giants ...

Continue reading Spanish Bank Consolidation Foretold

December 4th, 2008

Spain will spend an extra EUR 11 billion on public works and other recession-busting measures to fight a spike in unemployment after the global financial crisis, Prime Minister Jose Luis Rodriguez Zapatero said Thursday. "This is a strong arsenal to fight the slowdown in economic activity," he told parliament, adding the ...

Continue reading Zapatero: Worst Financial Crisis Since WW2

December 3rd, 2008

The number of people out of work in Spain is poised to surpass 3m amid a deepening recession caused by the collapse of the country's housing market and the global financial crisis, according to official statistics released yesterday. Unemployment, at about 12 per cent of the workforce, is at its worst ...

Continue reading Spanish Unemployment Highest in Europe

December 3rd, 2008

The Great Wall of China may be a big tourist attraction, but the Great Wall of Spain – the wall of ugly development along much of the Spanish coast – must surely bear a heavy responsibility for Spain’s declining popularity as a tourist destination. A significant chunk of the cement ...

Continue reading Spain's Coastal Concrete Wall

December 2nd, 2008

According to economists, the Spanish property market is experiencing "deflation" - a decline in prices, caused by a reduction in the supply of money or credit. There are four possible causes of deflation, and the Spanish property market is experiencing three of them: Decreased supply of money Increased supply of goods Decreased demand ...

Continue reading Deflation in the Spanish Property Market

December 2nd, 2008

Spanish EU-harmonised inflation is expected to fall to a 14-month low of 2.7 percent in November from 3.6 percent in October due to weaker fuel and food costs and a brewing recession, a Reuters survey showed. That would match October's 0.9 percentage point decline and narrow Spain's damaging inflation gap ...

Continue reading November in Spain: Inflation Drops to 2.7%

December 1st, 2008

Low-cost airline Ryanair has announced it will close all of its routes to and from Fuerteventura, in the Canary Islands, from 31st January 2009 unless local tourism group AIE honours its commercial agreement it reportedly signed to promote Fuerteventura as a tourist destination. Ryanair said it will close all services to ...

Continue reading Ryanair Impact on Fuerteventura Future

November 28th, 2008

UK house builder Taylor Woodrow de España has partnered with accreditation scheme Safe Buying Experience (SBE) to help ensure purchasers in Spain are offered a safe and secure process. This partnership provides a double reassurance to buyers as they are now guaranteed a quality home complete with independent endorsement as ...

Continue reading A Safer Buying Experience in Spain

November 28th, 2008

Aifos, a holiday home developer based in Marbella, has been forced into receivership by one of its creditors , the Spanish press reports. The company is reported to have 850 million Euros of debt, which would make it one of the biggest developers to date to go into administration, after ...

Continue reading Developer Aifos in Receivership

November 27th, 2008

Spanish third quarter house sales fell 30.5 percent year on year, steepening a fall begun earlier in the year amid chronic oversupply and credit restrictions, according to a recent report. Spain's College of Registrars recorded 130,884 house transactions between July and September, down 8.6 percent from the previous 3 months, ...

Continue reading Spanish Property Sales Down by 30%