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A good time to buy property in Spain - Posted: 03/07/2008

Spain’s housing minister, Beatriz Corredor, was upbeat and optimistic about the Spanish property market. She says now is a good time to buy property in Spain, there are many bargains and prices are only rising in line with inflation. She also urged developers to make an effort to sell their stock of empty property by adjusting to demand, thought to mean by lowering prices. Now is a good time to buy a newly built property.

On the question of the excess supply of property in Spain, Corredor said there are around 600,000 homes on the market, compared to annual demand for 450,000 homes. On this basis she argued that the constructions sector need to adjust to an ‘intensive’ model of refurbishing existing housing stock, as opposed to the ‘extensive ‘ model of new construction that has characterised recent years.

She also pointed out that recent housing starts of 600,000 or more a year were unsustainable, and that the real estate sector’s share of Spanish GDP, at 18%, was “far higher than desirable” for a country like Spain, bearing in mind an EU average of around 12%.

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