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

#117484
DBMarcos99
Participant

@peterhun wrote:

Spain isn’t going to recover until the end of this decade.

Spain is already recovering – growth is predicted for quarter 3 onwards. And we’re already seeing larger than average downturns in the unemployment figure, sorely needed.
What has changed? It’s not just the big companies (eg Airbus, Amazon, Ford, Volkswagen, Nissan etc) expanding and taking on staff in Spain. Nor is it just the huge percentage increase in tourists from places like Norway and Russia. Nor is it the huge rise in eCommerce and IT startups (take a look at how companies like Fon, Gowex, Akamon and SocialPoint are raking in international contracts). Nor is it even just the Spanish companies expanding at home and abroad (Zara, Lizarran,Mercadona, mango etc.) Nor is it even that Spain is in a position to benefit from tourists put off by events in Turkey and the Middle East..
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 http://www.tumbit.com/news/articles/7499-renfe-sells-over-15000-ave-alicante-tickets-in-one-day.html

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?