Re: Re: Some views about property reaching the bottom.

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@dbmarcos99 wrote:

What underlies all this, is that the western world generally is coming out of recession. Even the UK I believe. A rising tide lifts all ships..
If you still don’t believe things are improving, how come 15,000 tickets were sold on the first day of trading of the new high speed rail link between Madrid and Alicante? The vast majority of those sales would have been to Spanish people – able and willing to pay 70-80 euros for a return to Alicante
I agree that house prices will remain low for a while yet (outside the usual hotspots). Which is a good thing for the economy. The question is when they do start to rise, will it be gentle or another bubble?

From another forum

A one-track dirt road used by local farmers is the main access to a magnificent glass-and-steel train station in the small city of Villena, on Spain’s latest high-speed rail route.

It is a spanking new 4,500sq m building – essentially in the middle of nowhere.

The central government financed the rail route, inaugurated yesterday, between Madrid and Alicante on the Costa Blanca. The Valencia regional government was supposed to fund works to connect it to the nearby motorway and Villena, home to 35,000.

But it ran out of money, leaving the station high and dry.

The disconnect says a lot about both Spain and its current finances, about a love affair with grand projects to showcase its modernity and a diminishing ability to pay for them.

The Valencia government has pledged to complete the works but it is now unclear when and where it will be able to find the funds as it is already cutting spending on schools and hospitals as it tries to reduce a deficit.

Ximo Puig, the head of the Socialist opposition in Valencia, says the station is likely to become yet another white elephant in a country where dozens of airports, train stations, motorways or cultural centres built during a decade-long property boom are under-used or have been abandoned.

On many routes, Spanish cities lack the critical size to make the system sustainable, partly explaining why the state-owned Renfe train operator and Adif station and rail company are losing money.

Renfe has a 5bn-euro debt while Adif, rated as junk by Moody’s investors service, has debt of more than 11bn euros.

But on board the opening train and at the unfinished stations along the route, there was little enthusiasm.

In Alicante, about 200 people staged a demonstration against the new infrastructure and no more than 50 people welcome the new train at the Villena station.”



“ADIF rated as JUNK with 11 BILLION PLUS DEBT”

Valencian Govt cutting spending on Hospitals and Schools to try and fund the train station connection in the middle of Nowhere.