For more than five years now I have witnessed the Spanish housing crash and I agree with the causes, now well documented. I have consistently warned people not to buy in Spain at this time and have commented on the madness of people who buy into a falling market.
My advice still stands, the market is still falling. All I have stated recently is that the bottom may be reached sooner than expected and it is likely to be missed by most people, me included.
My reasons are quite simple: all of us commentators and the news we read is ‘westernised’, but I’ve noticed the Spanish government recently, and surprisingly, turning eastwards, in a big way. In a massive way, with trade delegations in Moscow, St Petersburg and Beijing extolling the virtues of living in Spain, and even offering residencia to any immigrants from the east.
Russia and China are massive countries which most western commentators pretty much ignore, and their citizens would find it nigh impossible to come and live in the UK or Germany, or anywhere else in the EU, but Spain is offering them a welcome with open arms.
If Spain’s promotion of their country succeeds in the east, and even if it only attracts a tiny proportion of immigrants, then that tiny proportion could still run into many millions and Spain’s housing problems would be solved overnight.