Housing statistics tell the tale... or do they?

As the UK housing market begins to implode month on month and frenetic media coverage greets every survey from Government and the private sector sources, spare a thought for the property market in Spain, Europe’s biggest and best known.

Some say builders there have been producing around 800,000 new homes a year, but whatever the figure, new Government statistics show there are now officially 24.5 million properties in Spain and 68.5% of them are used as primary homes.

Despite the planning scandals, rising interest rates and the so-called credit crunch Spanish builders increased the housing stock by 2.7% from 2006. More than 423,000 new households were created last year of which 80% are owner-occupied and 20% rented out. That dwarfs the UK market.

Planning permissions are down by 56%, housing starts down 26%, housing completions up 23% and if the trend continues the 700,000 completions per year will drop by 50%. Even that dwarfs the UK market.

That means the prospect of 350,000 new households this year, of which 70,000 are likely to be second or holiday homes along the Spanish Costas.

Market forces suggest they will be will be well-built with 10 year insurance guarantee, fully legal, well equipped and available at a bargain price for a key in hand purchase.

Russian buyers are circling the best buy areas, Brits are holding back hoping for even better deals, other Europeans are in there already enjoying the laid-back Spanish lifestyle, perhaps realising that demand and supply are equalising and 2009 might see the prices pendulum swing, as is being forecast by leading Spanish property portal, http://www.kyero.com who are scornful of rival statistics.

A case of “Look before you leap”…or “He who hesitates is lost”…

More Spanish stats http://spaineconomy.blogspot.com/