Are buyers returning to the Spanish real estate market?

Discussion in 'Spanish property' started by Nicholas Wallwork, Feb 12, 2017.

  1. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

  2. DC

    DC Member

    Market is growing, there are still lots of repos, but American hedge funds actually own more than the Spanish banks now. Why , because they brought in low prices. And they see it going one way.
     
  3. Longterminvestor

    Longterminvestor Administrator

    There were a lot of US hedge funds buying into Spanish property at the bottom of the market. They were keen to take massive portfolios at rock bottom prices. I dont think they will hold on forever and a day and could actually end up being a greyish cloud over any short to medium term recovery - they can simply turn the taps on and off and feed demand. This will probably stop prices gettting too carried away for the forseable future.
     
  4. lookinginvest

    lookinginvest Member

    The Italian financial crisis is not going away, Greece is still a mess and there is talk that German businesses are putting pressure on the EU to sort out a Brexit deal with UK. I dont think the EU has yet pulled away from the choppy waters which emerged after the 2008 worldwide economic downturn. Tred with caution!
     
  5. Longterminvestor

    Longterminvestor Administrator

    I don’t think the issues with Catalonia have gone away just yet. If Catalonia agreed any degree of independence from Spain this would hit the Spanish economy very hard. Less income, less funds to invest, which would probably have a significant impact on property prices?
     
  6. Locoinvestor

    Locoinvestor New Member

    I've just picked up on this thread: now in 2019 would one say it's the right time to invest in Spanish property? There seems to still be a bargain to be had however is it flooded with cheap options? Such as all those apartment buildings one sees completely empty? Or is it still a good long-term investment with a view to Air B&Bing it?
     
  7. Longterminvestor

    Longterminvestor Administrator

    There have certainly been signs of an upturn in demand for Spanish property but recently growth rates have started to fall. Germany is currently on the verge of recession, France is struggling and the UK is about to leave the European Union. Not a lot going for the region at the moment?
     
  8. realdeals

    realdeals Active Member

    I sometimes think that the EU is actually in a far worse mess than the UK even with a hard Brexit. So to see demand for Spainish property falling is not a surprise.
     
  9. Locoinvestor

    Locoinvestor New Member

    Would one say that the clever money sits on it for the moment and observes what's going to unfold?
     
  10. Locoinvestor

    Locoinvestor New Member

    Yes I think you're right, one sometimes gets so caught up in our own domestic problems, one forgets the state of other countries' domestic situations.
     
  11. SimonPorta

    SimonPorta New Member

    According to Nadezhda Gurina, a real estate analyst with Tranio, last year became a record year for the Spanish residential real estate market. Residential properties increased by 10.1% in 2018 compared with the previous year, and the number of registered transactions exceeded 500 thousand, which was the highest result since 2010. But the boom in this sector will not last forever. The aggressive growth of the market will end in the second half of 2019. However, despite the trend change, a recession or a crisis is not expected:
    tranio.com/articles/overview-of-the-current-spanish-property-market/
     
  12. Longterminvestor

    Longterminvestor Administrator

    Spain depends a lot on UK visitors and expats so Brexit will be a big issue for Spain. I have not really seen this mentioned anywhere which surprises me. If expats are not as welcome in Spain this could take quite a few property buyers out of the market - especially coastal markets.

    I would hold off just for now.
     
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