Risk firm optimistic on "Red Hot" Spain
By Kevin Barnett, 21 Jan 2006
Standard & Poor's chief European economist Jean-Michel Six has suggested that property investors have genuine cause for optimism in the coming year and highlighted the “red hot” Spanish real estate opportunities.
His survey of the UK, French and Spanish real estate markets highlighted the comparative strength of Spain, the long time recipient of most of the UK’s “overseas” residential property investment.
The Standard & Poor chief referred to recent figures from Sociedad de Tasacion that showed Spain's remarkable property boom is continuing with a 10.1 per cent increase in house prices in the country's provincial capitals last year. Jean-Michel Six has backed this evidence by forecasting that Spain should enjoy "healthy growth" throughout 2006. Saying that the Spanish housing market has been "red hot" for many years, he reiterated that it is "certainly a market to watch".
The latest Spanish bank property equity growth forecast has come from Caixa Catalunya, reporting that the country’s economy “remains sturdy” and, supported by strong buying trends from Spanish families, they see house price inflation of 12 or 13 percent through 2006.
That’s in line with current levels and matches CAM Bank and Caja Murcia forecasts of 12 percent for 2005 and 12 percent growth for 2006. Both banks are big investors in Spanish real estate developments and mortgage providers to Spanish and foreign buyers. They are members of the newly-formed Libertad tax break property purchase initiative with PropertyInSpain.Net, Travelex, Halo Financial, Ocaso Insurance, Spanish lawyers, leading developers and property valuers.
Libertad, that also includes options for fully legal shared freehold ownership of property in Spain, will offer 3,000 properties for tax break ownership at its official launch next month to 40,000 selected Uk property investors.
* Standard & Poors is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data, and valuations.
Spanish Property News