Euroresidentes published a recent article confirming that the new building of houses will fall in 2008 by 1.2%.
Is this a possible a new trend following on from the recent problems in the UK housing market?

European Commission predicts a fall in the construction industry in Spain
According to forecasts made by the European Commission based on information provided by the association of large construction companies, Seopan, investment in the construction sector in Spain dedicated to building houses and flats is predicted to fall by 1.2% next year.

It is also predicted that it will continue falling by up to as much as 10% over the next few years. These figure contrast sharply with the 3.5% growth expected in this subsector for 2007 and the 6.4% growth recorded in 2006.The drop in the construction of homes is the principal factor behind the slowdown in the Spanish construction industry predicted for 2008. It is expected that investment in construction will only grow by 1.3% in 2008 which is substantially less than the 4.4% forecast for this year and drop further in 2009.

Other sectors of the Spanish construction industry are expected to continue growing with a 4% rise in activity predicted for next year and 3.8% for 2009 even though these figures show a definite slowdown in the sector as a whole compared to 5.3% growth expected for 2007.

News from Spain: European Commission predicts a fall in the construction industry in Spain

Tags: spain, housing, construction

Here’s a a few thoughts on how to obtain a property in Spain by tying up some guaranteed rental income with it.

Guaranteed Rental - The Hot Favourite for Overseas Property

Guaranteed rental is often seen as the answer to every overseas buyer’s problems. Indeed it does seem so, but of course, there are things to look out for. On one hand, EyeOnSpain says, “Genuine rental guarantee deals where the numbers stack up offer peace of mind that you do not need to look for tenants or property management companies for the first few years.

”On the other hand, EyeOnSpain also warn, “Read the small print: is the guaranteed rental net or gross? If it is gross, ask what costs and service charges need to be paid. Do you have to buy a specific furniture package (might be a good idea anyway)? Is it a fair price? Are you allowed to use the property yourself, if so for how long?”It’s a matter of commonsense, really.

Do your homework. Get a good lawyer - a Spanish lawyer who speaks English if possible. This will smooth many a rough legal path. Do your own research. Find a good - excellent even - property dealer. Then choose your guaranteed rental carefully.Most of the problems experienced by British people buying guaranteed rental, and indeed, people from any locality, who buy property of any kind in a foreign country, boils down to not doing the proper research, and not preparing properly beforehand.

SpainRealEstateBlog.com

Tags: spain, rental, property

Ever wondered how the Spanish take care of housing themselves, side by side with foreign property buyers?
Here’s a post from euroresidentes.com blog:

Huge subsidised housing plan for Andalucia

Pact to guarantee the right to a home in Andalucia

The Andalucian regional government, business associations, trade unions, town councils and financial institutions have signed the biggest agreement on social housing in Spain’s history. The pact agrees to build and finance 700,000 flats over the next 10 years - 300,000 of which are destined to be subsidised social housing.

With this pact the Andalucian regional government is attempting to establish the basis for the application of a new law which Spain’s socialist government wants to introduce in the next parliament if they win the general election due to take place next March.

The new housing law would guarantee the right to a decent home for everybody with an income of less than 3200 euros a month. If the law is passed then it would be the first of its type in Spain and Analucian residents would be able to claim their right to a decent home in a court of law if they weren’t satisfied with provision made by the regional government.

The idea is that it would be something similar to the universal right to education and an article would be added to the Spanish constitution to guarantee this right.The Regional government, business associations and the trade unions UGT and CC OO have all endorsed the pact. Over the last 25 years 500,000 homes have been built in Andalucia which is 42% of the existing total.

Buying property in Spain: Huge subsidised housing plan for Andalucia

Tags: housing, spain,

Do your research on Spanish mortgages.
Some info on the lower rrates in Spain from euroresidentes.com

Many guides about buying property in Spain assume that potential buyers actually have the money available, but if you are considering buying a house in Spain because you live and work here, or because you simply want to invest in real estate in Spain, you may want to consider taking out a mortgage with a Spanish bank.

Whether you want to buy a finca in Spain, a holiday apartment on the Costa Blanca or a new home in Spain, taking out a Spanish mortgage may be the right solution for you.Interest rates in Spain vary, but are generally much lower than in the UK, and competition between Spanish banks is fierce. If you are interested in a property still to be built, you may find that the constructers already have an agreement with a certain Spanish bank for all mortgages and you are left with little choice.

If not, you would be wise to shop around for the best deal.Don’t accept the first offer. Ask for a copy of one bank’s offer and then take it to a different bank to see if they can improve the offer - they often will. Then take the improved offer back to the original bank - you may get a pleasant surprise!! It can be worth using services such as Orange Finance, which do exactly that on your behalf.

MORTGAGES IN SPAIN

Tags: Mortgages, spain