The collapse of the property market in Spain has left the economy in such deadlock that the main actors have this week sat at the same table to agree new solutions to the crisis.
Government, Developers and Banks are drawing a common strategy in an attempt to promote Spanish property market abroad, as crucial point. UK and German home buyers are in the spotlight.
The attitude of the Spanish Government is the usual one: To encourage buyers investing in property, especially now that Banks balance sheets are negatively affected by the property crisis. Government and Bank are still in their particular honeymoon. Hopefully this relationship will not be summited since the Government has said that the private problem will not be transfer to the public treasure as it happened in Ireland.
Developers highlight that Spain is a vacation destiny and for that reason homebuyers will come. But, from our perspective, to be a vacation destination does not guarantee home buyers but holiday makers instead. In that case, rental market will be the first option since to buy a property involves a lot of costs apart from the purchasing price.
The commitment of the Spanish secretary is to implement the current legal framework in order to give more legal security to foreign home buyers. This move must be welcomed by UK buyers who are waiting for their situation to be regulated since they were victims of a property fraud a few years ago. From The Spanish Brick perspective, if the Spanish Government regulate their situation it will very difficult to build trust in future buyers whilst thousands of Britons are still crying out for justice.
By Daniel Talavera of The Spanish Brick