Property Prices

Economist from the University of Barcelona Gontsalo Bernardos (Gonzalo Bernardos) believes that this year the number of property sales in Spain will be higher than in the past (2008) year. In his view, the real estate market starts to recover already this year, despite official predictions, to which he is skeptical. As proof, Bernardos cites a number of reasons, which can help to restore the property market in Spain: 1. Lowering interest Mortgage 2. Prices of some objects, taking into account discounts, approached the level of 2003, 3. There is a return to investors; 4. Buyers deferring purchases and tenants are returning to the market to purchase real estate in property. Despite the fact that official statistics show that housing prices in Spain in 2008 decreased by 29%, Mr.

Bernardos gives a figure of 20%. Moreover, he said that in the first quarter of this year sales have grown by 25-30% in comparison with the same period in 2008. The main reason for the increase in demand professor sees a drop in interest rates by 40 percent – from 6.25% in September 2008 to 3.25% currently. Another positive factor has been named the growth of launching new projects related to real estate in Spain. The number of such projects increased in the last quarter of 2008 by 7% the previous quarter. Summing up, Bernardos warned that despite the positive news and forecasts, a jump in real estate prices in Spain in the next two years is expected.

Increased sales will grow in 2009 and reached normal levels by the end of next year, when the market will form the new prices and falling house prices in the whole of Spain will cease. We also recall that in early March this year, we wrote about the fact that in Spain have begun merger talks large regional savings banks. The purpose of these associations (with support from the authorities of Spain) was to create a stable financial institution with high purchasing power and stability to the financial storms. Thanks koservativnoy investment policies and strict regulation, most of the Spanish banks to survive the first eighteen months of global financial crisis without major failures and government intervention.