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.