August 9, 2007
Spanish property market cooling
Could it be possible that the property market in Spain is beginning to show signs of cooling down? Well according to the German bank Commerzbank, this could be happening sooner than later, with the Spanish economic growth expecting to slip back around 1.5 per cent in 2008!
There are some striking resemblances with the UK in the late 1980’s, with the property boom peaking, interest rates rising and the Euro being so strong, it does not look good for property prices, something has to give and property is normally the first real sign.
The Bank of Spain say that there was an increase of almost 30 per cent in unpaid loans last year, with interest rates expected to rise even further, this problem is likely to get worse, before it gets better.
Source [Land Snatch]
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