Monday, 28 November 2011

Property investment in Spain

The current economic situation grows more and more French to invest in Spain. The financial crisis of 2008 caused a collapse of prices in the Spanish property market.

Vendors in Spain do not hesitate to sell off their sale price up to 50%. In some regions prices have even dropped by 70%. Spain is a country whose economy is based partly on real estate. In recent years a bubble had formed on the housing market. This particular bubble was fueled by domestic demand but also by foreign buyers such as English, Dutch and Germans who bought these goods is funding them with their own contributions or by subscribing to a credit in Spain.

In 2008, the financial crisis reached all levels of the economy, including foreign investment. A massive wave of selling was then performed well in the Spanish market. Causing a collapse of the housing bubble and the price level that we know today. To this was added the recession itself has limited the number of selling property in Spain.

Moreover, the policies of central banks including the ECB's key rates apply very low in order to revive the economy. Therefore, countries like France and Spain are facing historically low lending rates.

In summary, from the policies of central banks and the collapse of property prices, Spain offers investment opportunities and return on investment rarely achieved.

No comments:

Post a Comment