Optimism detected for the Spanish property market

Optimism detected for the Spanish property market

More than half of Spaniards expect house prices to continue falling this year and 35% expect them to remain unchanged, according to the latest survey by Spain’s CIS social research centre.

Some 26% blame the Spanish government for falling prices and just 4% plan to buy a home in 2013, the survey also found.

The date bodes ill generally for the market next year in terms of those wanting prices to rise, according to Mark Stucklin of Spanish Property Insight. ‘The prices expectations of the majority tend to be self fulfilling, so on this basis alone it is rational to expect property prices to continue falling,’ he said.

But there is good news out of the gloom. ‘Given that property prices have done nothing but fall since the end of 2008, even according to official statistics, I find it encouraging that more than a third of Spaniards expect prices to stop falling this year,’ explained Stucklin.

There is also positive news for the Murcia region of Spain. A new agreement was formalised last month for the Paramount Theme Park camp which is expected to boost interest in property in the region and the Corvera International airport could now open in November.

The new Paramount agreement has laid down the regulations for the construction and operation of the attraction and was signed by the Mayor of Alhama de Murcia and Jesus Samper, the president for Murcia’s Flagship Projects (PREMURSA).

This agreement replaces the original which had to be modified when the amount of land purchased was slightly less than first intended. The local council has reiterated that the Theme Park is continuing on schedule.

Installations and licenses are now, in the main, in place at Corvera and Jet2 airlines has already said it will transfer its operations from San Javier to Corvera when it has the green light.

This could come as early as November 2012 as the new Head of General Air Academy at San Javier, Colonel Emilio Juan Gracia, said the Region’s two airports were ‘close to reaching an understanding’ on how to transfer operations from one to the other.

In addition, despite rumours of serious financial hurdles, spokesperson for Murcia’s Regional Government, José Ballesta, has recently offered his reassurance that the banks behind the Corvera Airport project are calm and awaiting the return of their investment patiently and with realistic expectations.

The bank heading the financing plan, La Caixa, is said to be pleased with how the project is progressing. Meanwhile, Ana Pastor, the Spanish Minister for Public Works, said she believes everything is in place to have it operational before the end of 2012.

‘No one is blind to the problems that Spain is facing financially, public spending cutbacks and high unemployment are taking their toll but glimmers of hope and positivity exist,’ said Chris Mercer, director of real estate agent Mercers which is headquartered in Camposol Golf, just ten minutes from the Paramount site.He pointed out that Spain’s GDP was down just 0.4% for the second quarter of 2012 whereas the UK’s was down 0.7%.

‘Murcia is laying foundations for the future, putting itself in pole position for recovery, and in the meantime property prices are rock bottom, at their lowest in a decade. Two bed resales are available for less than than £40,000 and bank owned frontline beach apartments are discounted by 60% off peak prices with a 100% mortgage to boot. We’re busy with bargain hunter buyers,’ added Mercer.

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