José Blanco, Spain’s Minister of Development, has announced new measures to sort out the property market and improve housing accessibility.
This could mark a sea-change in Spain’s attitude towards the property rights of foreign investors, but we will have to wait and see if words are followed up with action.
Appearing at his own request before the Parliamentary Housing Commission to explain his department’s priorities for housing, Blanco said steps will be taken to make Spain more attractive to foreign buyers.
“With an eye on the international market, we will take steps to reinforce the legal protection of people who buy a home in our country,” said Blanco.
One step will be to protect people who buy in good faith from the negative consequences of buying an illegal home, unless the legal problems were recorded in the property register.
International Road-show to Promote Spain
Blanco revealed that there will be international press conferences to win back the confidence of potential investors, and give sales a boost.
There will also be steps to help the industry to build more of the type of homes that foreign investors might want to buy.
One of his department’s main objectives is to help reduce Spain’s glut of newly-built homes, which is weighing down on the market.
Blanco hopes to reactivate the moribund construction sector, creating jobs and demand for housing to help digest glut.
Blanco also spoke of the need for further price reductions to make housing more affordable and deal with Spain’s excess housing inventory. “The principal way to get the stock absorbed is one of the market’s own mechanisms, to offer more competitive prices for those types of homes and land where the over-supply is more evident.” In other words, prices will have to fall where there is an over-supply.
He also said that the “days of speculating with land and housing are gone and aren’t coming back.” Let’s hope he’s right.