Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Can Spain expect a spectacular recovery like Florida? › Re: Re: Can Spain expect a spectacular recovery like Florida?
I read your article, Mark. I believe that, until changes are made, the answer is NO. There needs to be a healthy level of employment in order for a sustainable real estate market to exist. And while Florida is doing well, the San Francisco Bay Area is so hot that it feels like another real estate bubble is rising. There are almost no sales for the asking price – homes are being sold for more than the asking price, and the sales prices are already at mid-year 2007 prices, which was the market’s peak here. Why is the market so hot? Employment. The unemployment rate has been steadily falling – in San Francisco it is now below 6%. Simulating the economy and reducing unemployment should be the highest priority in Spain.
Also, everything shakeel wrote is true. I would add that nothing that PP is doing is helping. The ‘real estate for residency’ debacle is a good example. How many proposals for this have they ‘floated’ ? Have any been finalized? This shouldn’t take months to implement. I don’t know when this all started, but I remember in November Rajoy announced a plan for 160,000 euro investment. As so many people know that I have a place in Barcelona, I’ve become a ‘point person’ for them. At least 10 people asked me about the ‘real estate for residency’ and they all have money to buy in Spain. I told all of them that nothing had been finalized and that I’d get back to them.
Now, at least two plans later, we still don’t have anything firm, and the latest proposal would only seem attractive to criminal elements in other countries. It really seems like PP is operating from a position of fear and paranoia about everything. Had they just moved forward with the original plan or maybe the 300k plan, they would have seen a big bounce in sales. It’s the same story with the ‘fast tracking’ of residency applications for those with Spanish-Jewish ancestry. I’ve been asked about that too. They did enact the law and no applications are being processed because it was all for show. Both of these examples demonstrate how lack of leadership and follow through have had a negative impact upon potential real estate sales.
I understand that most of those in power are good people wanting Spain to succeed, but they are dangerously unaware of their limitations. And they still haven’t figured-out how to deal with corruption.
I will be considering making another purchase but only if I survive the reforma process on my current unit (which was supposed to be completed before August but has not started; thankfully I have no contract), and ONLY if it looks like Spain’s leaders start doing things right.