Spanish property crisis hits Britons
Posted by admin on April 29th, 2009
Spanish proprety owners from UK are facing massive losses following signs that the bottom has fallen out of the property market in Spain. During 2008 vast swathes of the Spanish costa have been developed in a construction boom that has made the nation one of the fastest growing economies in Europe.
Spanish house prices have risen by more than 200 per cent in that period, encouraging many overseas investors – a large number of them British – to purchase property with the promise of short-term financial rewards.
Already in the middle of last year there were clearest sign that the boom is over. The developers said the combined value of their sales had plummeted from 1.3 billion euros (1 billion pounds) to less than 300 million euros (240 million pounds).
There are an estimated two million unsold spanish propreties and estate agents are closing their offices across the country. Analysts are warning that many investors will be unable to sell their costa properties and could find themselves saddled with negative equity. In the worst cases, those who bought properties off-plan and have not yet completed on their purchases could lose everything as smaller developers go into liquidation.
“The latest figures are a disaster,” said Mark Stucklin, from Spanish Property Insight. “As the developers’ sales collapse, many will be forced into liquidation meaning that those who have bought off-plan and not yet paid in full could be left with nothing.”
He estimated that thousands of British buyers could be affected.
“Even those who bought desirable spanish properties as early as 2000 could see the value of their assets shrink. Those who can afford to ride out the downturn should not consider selling at the moment if they can help it. But some will have a long struggle ahead.”
Source: http://www.telegraph.co.uk
Tags: costa property, properties for sale spain, properties spain, spain property crisis, spanish property boom
