Is the Spanish property market about to crash?

[Irisminer]

According to the Times, the Spanish property market is about to burst. This leaves many sellers, buyers and property owners in an insecure position. What is going on? Is the real-estate market in Spain really about crash?

The Telegraph believes that there is no reason for any panic. In Spain the prices of the houses have been rising through the roof since 1997. Luckily, this increase is stabilizing. This leaves the market with more realistic prices than in the past, with advantages for both sides, chances for selling are higher and it will go faster and buyers pay reasonable prices.

According to the Spanish government the property inflation is slowing down from 18.5% in 2003, 17.2% in 2004, 12.8% in 2005, and 9.1% by the end of 2006. The first three months of this year the prices have increased with 7.2%. That is the lowest quarterly increase of the last few years. After the prices have grown with incredible rates in recent years, property prices are finally stabilizing.

The fact that the Spanish property market is over-provisioned cannot be neglected. Therefore there is a possibility that, in some isolated areas, the prices will slightly drop. But there is little chance that this decrease will occur in all of Spain. The prices of the properties in popular areas like the Costa Brava, Costa Blanca, Mallorca and Barcelona will most likely continue to grow because of their value? but more slowly than recent years.

Instead of heading towards an inevitable crash, the Spanish property market is preparing itself for a soft landing. Property owners and buyers around the areas mentioned do not have to fear a sudden depreciation of their properties, since these properties will hold their value in the future.

From realestate-dreams.com

(Links removed - The Administrator)

[Administrator]

Move to the Lounge as it has nothing to do with East Dulwich

[SeanMacGabhann]

Any context around this Irisminer - as in, how is it relevant to the reader. Do you have property there and are you worried? And are you interested to know if anyone is in the same boat as you?

[Michael Palaeologus]

or are you in property?

[Ladygooner]

I thought there had already been a property crash in spain - I know a couple of people who have had their fingers burnt

[Jah Lush]

Fasten your seatbelts says a voice

inside the plane you can't near no noise

engines made by Rolls Royce

take your choice

...make mine Majorca

check out the parachutes

can't be found

alert those passengers

they'll be drowned

a friendly mug says "settle down"

when I came round I was gagged and bound

...for Majorca

(whose blonde sand fondly kisses the cool fathoms of the blue mediteranean)

they packed us into the white hotel

you could still smell the polycell

wet white paint in the air-conditioned cells

the waiter smelled of fake Chanel

Gaulois... garlic as well

says if I like... I can call him "Miguel"

...well really

I got drunk with another fella

who'd just brought up a previous paella

he wanted a fight but said they were yella'

...in Majorca

the guitars rang and the castinets clicked

the dancers stamped and the dancers kicked

it's likely if you sang in the street you'd be nicked

the double diamond flowed like sick

mother's pride, tortilla and chips

pneumatic drills when you try to kip

...in Majorca

a stomach infection put me in the shade

must have been something in the lemonade

but by the balls of Franco I paid

had to pawn my bucket and spade

next year I'll take the International Brigade

...to Majorca

[Domitianus]

I have heard that some new properties on the Costas have had their prices reduced by up to 60% and are still not selling.