Reply To: Spanish Property Market in 2007

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Anonymous

Just going back to the original question, which asked about various other sectors and places in Spain….

I work as a market analyst and have been seeing the sales slowdown all across the country. Certainly, there are certainly some hot spot in the interior – especially in places where the AVE is going to arrive – but there has certainly been a slow down in sales (there’s a number floating around that a property takes 4 times longer to sell than a year ago…I don’t think that’s quite true across the country, but it is in some areas).

For residential, people are starting to look in some other markets further East or they’re being creative (golf complexes, leisure complexes, etc.), but at the same time some other sectors are starting to take off. Hotels and Shopping Centres in particular come to mind. Industrial/Logistics centres also have some decent yields also the offer is fairly scarce. For the small investor, these don’t sound quite as exciting…as they are more commercial investments…but there are some opportunities albiet a less familiar process.

Spaniard don’t seem to think that prices are capable of dropping (which is pretty silly) so it will be interesting to see reactions over the next few months. Real estate is almost always a smart term long investment, so I think any decent, attractive property in a nice location will pay off in the long haul.

Oh, and as for corruption, Spain is trying to make the process more transparent. That’s whole idea behind the revisions of the Ley del Suelo. Say what you will, but you generally have some recourse in this country…which isn’t the case in more developing countries.