Reply To: Spanish property market 2007/2008 report discussion



I am also aware of ‘opportunity’ funds in London sniffing around for big Spanish developments in distress. These funds aren’t looking for the odd bargain property. They’re after entire new developments that have run into liquidity problems and can be bought for 30%+ discount. Budgets of €40 million plus.

Every day I hear more and more bad news about the market. It’s just the beginning, and I don’t agree with those who say it will only take a couple of months for the market to stabilise. I know I’m repeating myself, but I think lots of developers are going to hit the wall, and unemployment will surge, as will repossessions, and a general wailing and gnashing of teeth. Gonna be interesting.

If you think Spain is a risky investment, wait and see what happens to the so-called emerging property investment markets like Bulgaria, Morocco, Cape Verde, et all (and Dubai too). When the dust settles after the credit-drunk madness of the last decade it may at last dawn on the public consciousness that, for most ordinary punters, making money from overseas property investing is one big hoax. Your typical overseas property investor knows next to nothing about the countries they invest in, bar what they are told by sales organisation, and even less about the true economics of property investment (real costs, risks, market liquidity, etc.).