Spetial edition: spanish mediterranean coast
Interviews of Spanish real estate agents of Costa Brava and Costa Blanca. Reportage of Valencia région: Alicante, Guardamar, Torrévieja, Horihuela Costa, Carthagène.
Invest(ir) (en) Europe team questioned estate agents of Costa Blanca and Costa Brava, “what do you think about the Spanish crisis?” Tomás-Villa Martin city- answered without hesitation “The crisis is the problem of the banks, there is no other problem!” This property market specialist explained us that they have as much again customers, but the banks stopped to fund property developers and sales of property since 2008, “to lend €1 the bank requires you have €20 million on your bank
account”. So, only lend to those who can repay. For Sylvie-Rosas city- luxurious properties’ price as villas didn’t decrease “because they weren’t concerned by banks mortgage”, “and Barcelona steal remains an expensive property market also”. Maurice-Torrevieja city- explained us how the crisis started “when the property developers was unable to sale of property, banks foreclosed a lot”. This crisis dragged many people down as bricklayers who won “between €3.000 and €4.000 per month 5-6 years ago”, but now they are unemployed and excessively in debtbanks lent them a lot.
Many estate agents as Helen-Horihuela
Costa- told us “Spanish crisis started to come out”. “since the beginning of Spring
2014, property prices increase”. For Jaquie-Guardamar city- prices increased around 8%-10% recently, “in 2008 property prices were excessively high”, it is not surprising it decreased of 40% in 2009-2010. Actually, according to economics forecast*, Spanish growth would be +1% in 2014-it began since the end of 2013 thanks to industrial exports and tourism. Construction sector was 13% of GDP in 2008 and decreased to 7% of GDP in 2013-planning permission decreased of 22% between January 2013 and January 2014. But unemployment remains high (25,6% in February 2014). We asked to estate agents if the banks were a problem. Helen answered “until the crisis, the banks lent too easily” and she thinks it is a good way to be more selective and doesn’t favor excessive debt. Jaquie explained that some buyers don’t need loan and some others lend to their national banks when they are owner in their country because the banks do mortgage only in the country they are implemented. Maurice said that “the banks lent easily to foreigners than for Spanish people since the crisis”.
According to Tomás, the Euro members should follow American, Japanese or British’s example, “Germany is afraid of the inflation since 1929 crisis, and they still limit liquid assets today”. The meaning of this estate agent could be: if the European Central Bank decreased bank rates, less than the Fed, it refused to devalue Euro and also ECB and government States denied to abolish 123 article of Lisbonn Treaty which forbid ECB and all the central banks of the Euro area to lend to administration, local communities or any public establishments. If Spain seems to start up, that doesn’t rule out the possibility of a new property market crisis to start in an other Euro member State (to read Invset(ir) (en) Europe n°2 special French property market- December 2014). The buyers of Spanish Mediterranean property market are Europeans-majority-, Americans, Russians and Chinese people more recently. «Russians come in large numbers because Spain offers permanent visa to owner who bought a property costing more than €165.000». Some Spanish people said “Costa Blanca is not Spanish” in the meaning of there are less Spanish people living there than foreigners.