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Is The New Spanish Government Going To Help The Property Market To Recover? - 12 December 2011

At this moment in time, some investors are slightly nervous about investing in the Spanish property market as there have been a few problems and some unusual decisions made by both the banks and the government.

Homeowners in Spain have been protesting for years about the rapid growth in redundancies and the rising number of homes being repossessed. The banks hold partial responsibility with their spending habits including giving out mortgages to those incapable of repaying and suspect construction guarantees. All these factors have given the Spanish property market a bad reputation in the past few years for investors.

To help the property market to recover from this, the new Spanish Government, The People’s Party, are going to work on helping to boost the country’s property market and hopefully get it back to where it once was. They are going to focus on putting measures in place to build up Spain’s reputation and try and encourage both domestic and international buyers that they can invest in property in Spain and get a return on their investment.

The property sector is crucial to Spain’s economy as it generates millions of jobs and can also attract high levels of investment from overseas buyers which would help to grow tax revenues. The previous Spanish government did make a serious attempt at improving the market through cuts to property tax and providing an online property registry service for potential buyers to look and check the legal status of the property. However, due to these projects being badly organised, aside from other issues, it did not make the impact that the country so badly needed.

This did not help to put confidence back into the Spanish property market so, to avoid the same mistakes, the new government needs to be very careful when planning and executing their next steps. Hopefully, this time round the attempts will be more beneficial to the market and we will see Spanish property becoming attractive to overseas investors and potential buyers again.

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