If you believed all the hype about what is happening in the Spanish property market then you would be looking for the blood letting everywhere. While it is true that the market has slowed considerably compared with five years ago, we at Valencia Property said for many years, rises year on year of over 20% in property values were not sustainable. However bear in mind the following. Foreign investment in Spain in the first six months of 2007 went up by 30% compared with the same period last year.
My explanation is that Russian money is flowing into the country and all of the immigrants from South America and Eastern Europe are now starting to settle into jobs here and want to buy property. Short term prices may start to fall but long term the future looks pretty stable due to the increasing immigration and disparity between demand in large cities and availability. It is also a good time to rent out properties that you may have bought some time ago as demand is growing because higher interest rates are moving some people out of the possibility of buying. Expect rates to start dropping next year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment