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Assetsure News 22nd
April 2007
Spanish Property Bubble Fears - this
Thursday saw a number of Spanish Real Estate companies suffer large downturns in
their share prices. There has been an incredible bull run for some of these
stocks with prices rising by up to 1000% in some cases. The latest data
regarding house prices is not too encouraging although it's not all doom and
gloom.
Spanish house prices increased by 7.2 per cent in the first
quarter, and this is lowest increase in almost eight years, this
information was supplied by the Spanish housing ministry who added that there
was a currently a situation of oversupply in the housing market. They have
granted 800,000 licences for new property yet the current demand is only for
600,000. One of the reasons for this glut of applications is that builders are
rushing to enter applications before tough new environmental laws are
introduced. It would seem that the simple laws of supply and demand are having
an effect of on
Spanish property prices and in some areas prices are starting to
fall slightly. Analysts said the new figures support other indications that the
Spanish property market is continuing to slow after almost two decades of
impressive growth .A recent report by the Bank of Spain said that real estate
spending by foreigners dropped 11 per cent in 2006 to 4.9 billion euros
however this may indicate that we are now searching harder to seek out the
value properties.
Average property prices rise in Spain - April statistics show that the national average
property price in Spain has has increased by 4000 Euros from €244,000 March 07
to €248,000 April 07. Barcelona is still the place to be and it has has
retained the highest average price for across all property types for the 4th
consecutive month running at €598,000, 140% above the national average. to the
north of Barcelona, Girona on the Costa Brava is presently 79% above the
national average at €445,000 for property prices. South of Barcelona
Tarragona on the Costa Dorada, has property prices 8% below the national average
at €229,000. It is reported that at the present moment, 5 bedroom properties
have experienced the greatest uplift in price with an increase of 6.8% from
March 07 to April 07. If you are interested in the Spanish house price index,
you can download a copy by clicking on the following link www.kyero.com/price_index/
Spain remains the popular choice - it's fair to say that in recent months, eastern European
countries have been grabbing the limelight for property price increases with
Poland leading the way with some phenomenal reported price increases. However
Spain remains a firm favourite and despite some fears about price's overheating,
confidence in the market remains high. The focus for the last number of years
has of course been on the coastal areas but many people are not feeling that
these areas are overpriced or simply too crowded. It is predicted that the next
few years will see the focus shift more inland where prices are still lower and
their is more room to breath.
500 Britons a day leaving our shores - Statistics just released by the office of National
Statistics show that as many as 500 persons per day are leaving Great Britain to
start new lives abroad,
In excess of 380,000 persons left the country in
2005.More than half were British citizens leaving for more than a year. The top
destinations are Australia, Spain, France and New Zealand. For anyone that is
interested, this is where we are all heading. 1Australia 71,000 - 2 Spain 58,000-3 France
42,000-4 New Zealand 30,000-5 US 25,000-66 Canada 17,000-7 Netherlands 8,000-8
UAE 7,000-9-Germany 6,000-10 South Africa 6,000
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