Re: Re: The Spanish Property Market in 2012?


@mark wrote:

It will take time but one day it will be over and the market will return to normal and house prices / income ratios will be back to normal too.
We are just not there yet.

Mark that optimistic statement may have been true after other post war recessions. However it’s by no means a done deal this time around. For that to happen the Spanish economy and the banking system will have to return to substantial growth of at least 4-5%. Where is that likely to come from? Modest growth will only allow the economy to be slowly repaired and employment rise existentially.

It will also depend very much upon the rest of Europe and the wider world. The signs are for the global economy to stutter along the bottom for many years to come. So long in fact that it’s completely unpredictable.

Generations of people in the west have become used to prosperity and sustained economic growth and rising property values. It’s not a given. History shows that it’s a much more normal state to expect very modest growth and wealth with property being just a place to live and bring up a family.