Blue Skies Ahead for Spanish Property?
November 24th, 2009
The technical end to recession in Europe makes both Spain and the UK look a little sick, although it also represents an opportunity for Spanish growth. If the country also deals with the systematic corruption of its Town Halls – maybe there really are blue skies ahead?
The big news last week was that Recession Ends Across Europe – except in Spain and the UK.
In Spain, however, we read that Deflation Concerns Subsiding, while an article calling Britain the economic sick man of Europe concluded:
“Of the five largest European economies, only Britain and Spain are still in recession, and even the stricken Spanish economy is performing marginally better than the UK.”
For Spain, at least, the prospect of a general European recovery is very good news indeed. In European Recovery is the Best News for Spain we learn that 70 per cent of Spain’s exports go to the eurozone.
If Spain’s European neighbours now have more disposable income available for Spanish products, that will become a significant factor in returning the Spanish economy to positive growth.
As I’ve been predicting for quite a while now, this definitely applies to the Spanish property market too. In Mallorca – a Taste of Things to Come in Spain, Mark Stucklin highlights the fact that foreign buyers are ready and waiting to snap up prime Mallorca property – because while the Spanish economy is still frail, property prices are temporarily suppressed.
On a related note, there’s more good news in Finally, Spain Wakes up to Corruption. It seems that Spaniards are now willing to accept that the property boom also brought about massive municipal corruption.
Aside from being miffed about these criminals lining their own pockets, it’s starting to dawn on them how Spain’s international status has also been badly damaged.
We can only hope that when our economies return to ‘normal’ that the Spanish property market will emerge with greater transparency and a little less prone to the excesses of boom and corruption.
There’s a new and very useful article from Peter Christian for those of you keen to speak Spanish as the locals do. In Tasty Phrases To Help You Enjoy Delicious Food in Spain, Peter provides some surprising examples.
My favourite phrase translates literally as: it smells of death whereas in Spanish the meaning is quite the opposite – good to know.
Last, your response to last week’s article about the upcoming Spanish Property Auction was huge. Download the catalogue to see which lots are for sale and also to read some very professional background advice.
Martin Dell, Kyero.com
