Spanish Property Crash hits Britons

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This topic contains 11 replies, has 10 voices, and was last updated by Profile photo of Fuengi (Andrew) Fuengi (Andrew) 8 years, 6 months ago.

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  • #53958
    Profile photo of Anonymous
    Anonymous
    Participant
  • #82677
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    Anonymous
    Participant

    “The latest figures are a disaster,” said Mark Stucklin, from Spanish Property Insight. “As the developers’ sales collapse, many will be forced into liquidation meaning that those who have bought off-plan and not yet paid in full could be left with nothing.Even those who bought desirable properties in Spain as early as 2000 could see the value of their assets shrink. .”

    Now Rob will get very upset with Mark.

  • #82678
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    Anonymous
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    @ralita wrote:

    Now Rob will get very upset with Mark.

    No ralita

    Rob actually has an interest in Spanish Property and is not just a dreamer sitting on the outside looking in!

    Even what you quote states quite clearly that purchsers COULD see values shrink – NOT will.

    You need to get a life and stop trying to talk prices down! You will never get them down low enough to buy anything.

    I went to buy a “traditional” rabbit hutch for one of my kids the other day and was a little taken aback at the price of 150€. Timber is expensive in Spain but that was too high in my view. However, the guy that was selling told me that you, ralita, had spoken to him that morning and dared to suggest that maybe a 30% reduction was in order. However, if he had agreed to that crazy offer, you were in need of a mortgage and the bank had refused you a 95€ loan.

    Please ralita, get out of fantasy land, stop making any comments on Spanish property matters that you have no interest in or knowledge of, and stop being a doom monger. When you can afford a rabbit hutch then maybe you will be able to make some positive input to this forum. However, not sure where you would house the hutch?

  • #82683
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    Anonymous
    Participant

    Claire

    this part of the report

    ”Spain’s seven biggest property developers reported this week that the value of properties in the first quarter of 2008 had plunged by almost 75 per cent compared with last year.”

    ………..so what’s really going on then??. On one hand we read the above, on the other, we have many people saying that reductions in property prices are still often small, bargains are still hard to come by, people riding out the storm, not accepting low offers etc.

    some very conflicting views, that just don’t add up? Many millions of euro’s must be being wiped of the property market, yet a real price crash seems to be held back still, which is great for those who stand to lose a fortune by a crash, but seems very odd? Is it just a matter of time, or will the losses mainly be felt on new builds by developers. Seems unlikely?

  • #82684
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    Anonymous
    Participant

    ” Is it just a matter of time, or will the losses mainly be felt on new builds by developers.”

    They will be felt by the developers and ones who have just built for the sake of building i.e. no respect for the basics of a purchase, environment & ambiance of where and what they have built. Along with all the developers will be the flippers, who will either abandon or try & cut their losses.

  • #82685
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    Anonymous
    Participant

    Hi Goodstitch,
    Apparently, the real drop is above 75%. That coming from some Spanish Bank Managers. I think it is mostly affecting new builds. As reported last week, there are 2,000,000 unsold new properties.

  • #82686
    Profile photo of katy
    katy
    Spectator

    Didn’t one poster say that Polaris World have just increased their prices? A friend has been looking for a small villa and most won’t budge on price, sort of take it or leave it attitude. It seems as if we are going to have a new mantra from the Agents now…bargains are there but you don’t know about them 🙄

  • #82688
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    Anonymous
    Participant

    I think there is something very strange here.

    There is no-way values of properties can be down by nearly 75%. That would mean builders were selling property for less than the building material costs and that just isn´t likely or adviseable.

    However, there was a report out last week which claimed SALES were down by 74% http://www.spanishpropertyinsight.com/forums/viewtopic.php?t=3217

    I suspect that the intrepid reporter at the Telegraph must have got her VALUES and SALES figures confused. It seems to me that her figure of “nearly 75% reduction in values” is a little close to close to “nearly 74% reduction in sales” as the largest 7 developers have confirmed last week.

    Other than this I cannot possibly account for such a ridiculous statement, though it would be good if Mark Could throw some light on the subject.

  • #82690
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    Anonymous
    Participant

    I think this is where the reporter went wrong:

    “But in the clearest sign yet that the boom is over, the developers said the combined value of their sales had plummeted from 1.3 billion euros (£1 billion) to less than 300 million euros (£240 million)”.

    value of their sales as against value of property – in other words their turnover was 74% down.

  • #82691
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    Anonymous
    Participant

    Sorry, I didn’t read goodstitches post correctly. We were told sales down WELL over 75%. (nearer 100%!) My apologies! Yes the report says values down 75%.

  • #82704
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    Anonymous
    Participant

    To clarify, the combined sales revenue of most listed developers down by 74%, not property prices.

    More info:

    http://www.spanishpropertyinsight.com/buff/?p=59

    Mark

  • #82726
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Hi mark,

    considering that the telegraph article has made quite a mistake don’t you feel they have misquoted you?
    Especially if you are seen by some as an authority and property/info in spain.

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