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There is still bad news coming from the property market in Spain.  Even though there is a low level of demand from those looking to retire in Spain – usually from the UK or low countries – there is little sign of investors returning to the country.

Up until recently, Spain could could on the property and construction industry for up to ten percent of its Gross Domestic Product but these days still finds itself attempting to recover from countless repossessions and unsold properties all over the country. 

The Balearic and Canary Islands are doing much better either although they are quite mature markets which tend to attract wealthier buyers resistant to the world’s economic changes.

Despite this, the faithful amongst the Spanish construction industry foresee a return to the former boom times but when there are clearly so many unsold properties on the market, it is difficult to see how that would be possible.  Many Spanish have not understood the reasons for the recent boom, especially that it was fuelled with borrowed money from UK investors whose properties had appreciated at home.  The Spanish property market did not exactly grow organically.  It grew off the back of reckless lending and a cycle of more and more borrowing.

Despite signs of recovery in some European countries, it is doubtful we will see a return to the numbers buying abroad especially as the ability to raise finance and obtain second mortgages has become increasingly difficult.  When the excess of unsold Javea property has reduced, it is more likely we will see steadier market conditions in the future as the market returns to appropriate market levels.

Call Realtor Agata Grudzinski @ (850) 708-7724 for Property Details.