Archives for July 2009

July 31st, 2009

Citigroup has released a forecast which is very troubling in regards to employment and growth in the Spanish economy. With unemployment already having hit 17.9%, Citigroup expects layoffs to increase this to 22% in 2010. The stabilization that the Spanish labour market seems to have shown, with an increase of 0.5% ...

Continue reading Spain’s Unemployment to Reach 22% in 2010

July 30th, 2009

This cycle of bubble and bust in housing is drawing to a close. For many the ferocity of the bust and the collateral damage that followed was a shock, but bubbles and busts are not new; chances are there will be more. 1. All bubbles need a catalyst. Bubbles start in "good ...

Continue reading Seven Laws of Property Bubbles

July 28th, 2009

The ninth-biggest Spanish savings bank will be created with the merger of Caixa Sabadell, Caixa Terrassa and Caixa Manlleu in Catalunya. Three savings banks in northeastern Spain said they had agreed to merge at meetings on Tuesday, with the aim of creating the ninth-biggest Spanish savings bank. The three savings banks, near ...

Continue reading Three Spanish Building Societies Merge

July 27th, 2009

Overall numbers down 10 pct y/y vs 11.8 pct fall Jan-May - British numbers down 11.6 pct vs 17.8 pct in Jan-May - Consumer association highlights structural challenges. The number of foreign visitors to Spain fell 10 percent in June versus a year ago, a slight improvement on the January-May period, ...

Continue reading British Account for 26% of Spanish Tourism

July 24th, 2009

With the news that the British pound is still holding strong, many Britons are still actively contemplating buying a holiday home abroad as an alternative investment. However, more than ever it now pays to be realistic when buying a holiday home abroad. Some may ridicule this idea in light of the ...

Continue reading Realism Rules in Overseas Property

July 24th, 2009

After almost a year of tentative talks, flirtatious gestures and failed courtships, Spain's cajas - the unlisted, regional savings and loans institutions - are finally knuckling down to the serious business of survival in the face of mounting bad loans and funding problems. While prudent regulation and the banks' retail focus ...

Continue reading Spanish Building Societies Continue to Struggle

July 23rd, 2009

After struggling to find a buyer for her renovated two- bedroom apartment in Madrid for two years, Arancha Ibarra found a tenant for 750 euros ($1,066) a month, becoming one of the 1.5 million second-home owners thrust onto the country’s rental market. The number of properties for rent in Spain climbed ...

Continue reading Most Spanish Rental Property Since 1950’s

July 21st, 2009

This week, there's a difference of opinion over the Tinsa Spanish house price index for June 2009. My interpretation of their data is that a 10% Y-O-Y decline seems about right - because a year ago, house prices had already declined almost 20% from their peak in the middle of 2006. Mark ...

Continue reading Spain: Same Data, Different Interpretation

July 21st, 2009

Spanish property prices are still falling, especially on the coast, according to fresh data from two different sources. Average prices fell by 10.1% over 12 months to the end of June says the Spanish property price index published by Tinsa – one of Spain’s leading appraisal companies – whilst new figures ...

Continue reading Spanish Property Price Falls

July 20th, 2009

Spain's central bank has bowed to pressure and relaxed provisioning rules for lenders in a move that could help some banks avoid losses next year and allow others to strengthen their capital ratios. The Bank of Spain yesterday confirmed that it had advised all banks that they would no longer have ...

Continue reading Spain Relaxes Lending Rules

July 17th, 2009

Deputy Prime Minister and Economy Minister Elena Salgado has been forced to admit that the economic situation in Spain is far worse than previously acknowledged. Until last month the Socialist Workers Party (PSOE) government remained publicly optimistic about the recession, with ministers talking about “green shoots” of recovery. Following their poor showing ...

Continue reading Spain: Crisis Worse Than Thought

July 16th, 2009

Spain has close to 1 million newly built properties languishing on the market in search of a buyer, and almost 50% of them are holiday homes on the coast, claims a recent article in the Spanish financial daily Expansion. As a result, coastal areas of the Valencian Region, Murcia, and Andalucia ...

Continue reading Second Spanish Properties Struggling

July 15th, 2009

Britons who have had second thoughts about buying holiday homes in Spain are being pursued in the Spanish courts by the developers - despite a clause in their contract allowing them to back out of the deal, law firm DWF has warned. The firm is acting for a number of British ...

Continue reading Spanish Developers Force Buyers to Complete

July 14th, 2009

Two of this week's articles deal with Spain's challenge of bringing its public deficit in line with the European maximum of 3% by 2012. In Public Deficit Could Hit 12% in 2009, we read about the tightrope Spain's policymakers are walking between injecting enough money into the economy to jump-start a ...

Continue reading Spain’s Public Deficit Problem

July 14th, 2009

Spain's economy is likely to have shrunk 'substantially' less in the second quarter than in the first, though growth will remain negative to the end of the year, the economy secretary was quoted on Monday as saying. 'We don't have a precise estimate, but we believe that the fall (in gross ...

Continue reading Spanish Economic Recession Less ‘Intense’