Will high tourist numbers make a difference to house prices?

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    DBMarcos99
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    http://www.elpais.com/articulo/english/Number/of/overseas/visitors/to/Spain/hits/record/levels/in/August/elpepueng/20110922elpeng_8/Ten

    I suspect it won’t. A lot of the increase this year can be put down to unrest elsewhere (Egypt, Tunisia, even Greece) and tourist numbers may slip back next year. Also, with rental prices remaining low and the currency outlook uncertain, many will prefer to rent and wait to see what happens. Having said that, certain areas may stay strong. Mallorca, Marbella to name a couple. I don’t think Madrid (the only community to record a fall in unemployment in November) will see further falls in house prices either. The only thing that may affect niche locations is where foreign buyers move in. I follow this person on Twitter, and he’s starting to sell properties of a certain standard to overseas Chinese speculators. https://twitter.com/#!/grahunt But in general I still see further falls to come, unless Spain leaves the Euro. At that point I suspect (if their currency is devalued) a flood of buyers will descend to pick up the bargains.

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