he Spanish property market phenomenon of the Spanish stock
has been in the eye of the market that got a slap in the
storm on many occasions, face, leaving the Spanish
both for good and bad reasons. construction sector and Spanish
Recently, it was because of a house prices untouched.
sharp fall in the value of Astroc
Mediterraneo, and subsequently The British press failed to point
other Spanish real estate out, for example, that the shares
companies, on the Madrid stock in Astroc Mediterraneo, which
exchange. fell so sharply, and initiated
the story in the first place,
The British press went to town rose more than 1000% last year
with its typically sensationalist alone, and that even after the
coverage of the Spanish stock fall, were still up over 100% on
market's "Black Tuesday", their value this time last year -
announcing a Spanish property a great annual return by any
market crash and warning readers measure. To conclude that a
of the huge losses facing British stock market correction was well
investors. It failed to point overdue might have been a more
out, however, that the actual rational explanation. A sceptic
property market in Spain had not might attribute the chosen
suffered any consequences! headline to its more positive
impact on newspaper sales!
Attention-seeking headlines of
this kind need to be balanced The reality is that house prices
with the relevant facts and a primarily reflect the supply and
clear understanding of how those demand for houses. Although
facts impact the underlying value demand for Spanish property has
of Spanish property. It was, seen a marked decline during the
in-fact, the speculative last year or so, compared to
their earlier boom levels, due have properties in these
primarily to rising interest categories. It is no longer
rates across Europe, evidence is necessary to wait two years or
now appearing to suggest that more for your Spanish property.
supply is also being cut back, as
Spanish developers channel 2. Consider re-sale properties
resources and efforts into new (properties purchased off-plan
markets, such as Poland and some time ago by investors but
Romania. Indeed, the stock now being sold on prior to
market scare is itself likely to completion). The drawback of
result in a further supply re-sales has been mitigated by
cutback. the recent market changes.
If you are considering the 3. If you're an investor,
purchase of a Spanish property concerned primarily with your
and are concerned about the return on capital employed, you
recent headlines, it is should look for distressed sales
recommended that you mitigate any (people who purchased off-plan
potential risk by considering the some time ago and who cannot
following options, instead of the complete the purchase now that
more popular off-plan purchase the property is almost finished).
that became so popular during You should expect a significant
those boom times: discount to current market value,
but you will need to act very
1. Consider the purchase of a quickly.
key-ready or soon-to-be-ready
property. Some developers now
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Kingdom-Homes offer Golf property for sale in Murcia, and is firmly committed to the highest ethical standards.
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