Comments on: Glut of new Spanish homes will take market 2 years to digest http://www.spanishpropertyinsight.com/buff/2008/12/29/glut-of-new-spanish-homes-will-take-market-2-years-to-digest/ The lowdown on Spanish property Sat, 11 Feb 2012 18:45:42 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: carlomagno http://www.spanishpropertyinsight.com/buff/2008/12/29/glut-of-new-spanish-homes-will-take-market-2-years-to-digest/comment-page-1/#comment-416 carlomagno Wed, 11 Feb 2009 17:53:11 +0000 http://www.spanishpropertyinsight.com/buff/?p=535#comment-416 Guy, <i>it will be the Spanish that soak up the excess suppy</i> With unemployment going through the roof for as far as you care to look ahead, I doubt it. Guy,

it will be the Spanish that soak up the excess suppy

With unemployment going through the roof for as far as you care to look ahead, I doubt it.

]]> By: GuyMarrison http://www.spanishpropertyinsight.com/buff/2008/12/29/glut-of-new-spanish-homes-will-take-market-2-years-to-digest/comment-page-1/#comment-405 GuyMarrison Fri, 09 Jan 2009 14:57:13 +0000 http://www.spanishpropertyinsight.com/buff/?p=535#comment-405 On the article: I dont know where the figures come from but the developers association estimates that there are 650,000 new unsold homes - still rather a lot but not the one million guesstimate this seems to be. What is not in doubt is that the construction sectors needs to massively contract. The real oversupply is around cities AND the coast (but by no means concentrated on the coastal areas). Coastal areas are more widely reported because the prices have fallen faster. Also, the buyers will be predominantly Spanish, not British as asserted above. On the coast (Costa del Sol) about 40% of buyers are foreign. Of them about 35% are British. Therefore, it will be the Spanish that soak up the excess suppy (as in the early 1990s when prices last fell). In addition, properties cannot be made illegal. They are either legal or not. The illegal properties that we hear so much about were illegal in the first place and are now being 'legalised'. That is, the town plans are being modified to include the planning infractions. What should be of more concern is enforcement. Any planning infraction should be punished immediately and severly if it occurs again. However, market forces are likely to ensure that this does not happen again. I hope the analysis done on the property market can be a little more objective, rather than general. Real estate is local and should not be lumped as 'Spanish property'. Guy Marrison Marrison Properties www.marrisonproperties.com On the article: I dont know where the figures come from but the developers association estimates that there are 650,000 new unsold homes – still rather a lot but not the one million guesstimate this seems to be.

What is not in doubt is that the construction sectors needs to massively contract.

The real oversupply is around cities AND the coast (but by no means concentrated on the coastal areas). Coastal areas are more widely reported because the prices have fallen faster.

Also, the buyers will be predominantly Spanish, not British as asserted above. On the coast (Costa del Sol) about 40% of buyers are foreign. Of them about 35% are British. Therefore, it will be the Spanish that soak up the excess suppy (as in the early 1990s when prices last fell).

In addition, properties cannot be made illegal. They are either legal or not. The illegal properties that we hear so much about were illegal in the first place and are now being ‘legalised’. That is, the town plans are being modified to include the planning infractions.

What should be of more concern is enforcement. Any planning infraction should be punished immediately and severly if it occurs again. However, market forces are likely to ensure that this does not happen again.

I hope the analysis done on the property market can be a little more objective, rather than general. Real estate is local and should not be lumped as ‘Spanish property’.

Guy Marrison
Marrison Properties
http://www.marrisonproperties.com

]]> By: TerryC http://www.spanishpropertyinsight.com/buff/2008/12/29/glut-of-new-spanish-homes-will-take-market-2-years-to-digest/comment-page-1/#comment-399 TerryC Wed, 07 Jan 2009 14:06:09 +0000 http://www.spanishpropertyinsight.com/buff/?p=535#comment-399 It will take a lot more than an improved exchange rate for Brits to start buying in Spain again. First and foremost the buyer must know unequivocally that when they pay their money the house is theirs, lock stock and barrel from that point onwards and for ever more. Legislation must be put in place changing the whole area of house purchase so that it becomes "AS SAFE AS HOUSES" to coin a phrase. Subsequent legislation must not be imposed on home owners so thal a legal property becomes illegaL. Sort all this out and then people might consider Spain once again. It will take a lot more than an improved exchange rate for Brits to start buying in Spain again. First and foremost the buyer must know unequivocally that when they pay their money the house is theirs, lock stock and barrel from that point onwards and for ever more. Legislation must be put in place changing the whole area of house purchase so that it becomes “AS SAFE AS HOUSES” to coin a phrase. Subsequent legislation must not be imposed on home owners so thal a legal property becomes illegaL. Sort all this out and then people might consider Spain once again.

]]> By: polaris-world http://www.spanishpropertyinsight.com/buff/2008/12/29/glut-of-new-spanish-homes-will-take-market-2-years-to-digest/comment-page-1/#comment-396 polaris-world Tue, 30 Dec 2008 15:59:06 +0000 http://www.spanishpropertyinsight.com/buff/?p=535#comment-396 Most of this inventory will rely on British buyers to clear it. We need a rise in the exchange rate (currently €/£1.03) to help this process otherwise we will have a period of hesitation as buyers adapt their expectations while hoping the pound will recover. Paul Williams www.polarisworld.info Most of this inventory will rely on British buyers to clear it. We need a rise in the exchange rate (currently €/£1.03) to help this process otherwise we will have a period of hesitation as buyers adapt their expectations while hoping the pound will recover.
Paul Williams
http://www.polarisworld.info

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