Spain is trying to ofload the estimated 700,000 empty, completed properties, mostly on the coast, by taking a roadshow around Europe starting this week in the UK. They are trumpeting the price falls which seems a strange way to promote it.
Undeterred by being greeted by protestors outside the roadshow in London the Minister Jose Blanco read his prepared speech and then swanned out of there without meeting the protestors, (Some protestors were able to speak to minions after the event who took notes. So that is good news isn't it? Oh I was being sarcastic in case you couldn't read between the lines there ;-))
So I have started this article off being heavily critical of the roadshow because it does not address the isues of previously illegally built properties that are under threat of demolition because of corruption at a local, regional and sometimes national level.
Until they sort that out for previously built properties without their habitability certificates, electric connections or sewerage then the roadshow will lose respect.
And just as a side note if they followed the tips in my book then they might get a lot more interest in their roadshow
Web Marketing for Estate Agents
Nevertheless, the Spanish property market as a whole should not be tarred with the same brush. The vast majority of Spanish property is totally and utterly safe to buy. And by vast majority I would say well over 95% of it. You just need to avoid the rubbish and the scams and that is easily done with a little bit of guidance and due diligence. And you will not find the best properties at the roadshow needless to say
As I have mentioned in these pages before, there is not a single Spanish property market, there are lots of localised markets and the price falls are not at all uniform over the whole market.
Again, to emphasize, if a property is on the coast, first line beach will hold its value. Two kilometres away in amongst thousands of identikit cookie cutter homes where half are for sale due to unemployment levels of over 20% in Spain and foreign buyer apathy for various reasons, including the buying power of the UK pound, will not.
Large cities have a growing population as people search for work and city centre properties hold their value more than the periphery of the cities where most of the unsold stock lies.
If a mortgage is available then the property is more likely to sell. Banks are only lending significantly on their own stock at the moment. (Anecdotally they are stealing clients from estate agents bringing buyers into their offices by only offering mortgages on their own properties.)
What is the old truism? Location, Location, Location.
If you have a fantastic setting with great facilities and demand then don't expect more price falls. If you are somewhere over the other side of the River Styx then expect there to be no floor to the property price falls.
Buying a house in Spain is not rocket science. A bit of due diligence, a lot of common sense and some guidance about what to look for, see my 100 video tips on YouTube to tell you more, and you have a rule of thumb for buying property in Spain.
As for the roadshow, if they stopped making ridiculous statements like those seen here in the Telegraph about only 1% of people being affected then they might get more credence. (The figure is probably less than 1% but trying to brush those cases under the table with fingers in the ears and hoping they will go away is not an answer)
Other Things That May Interest You
1) Web Marketing For Estate Agents (The definitive book on how to market a property online)
2) Segmentation in The Spanish Property Market
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