Overseas Property World

The international version of the UK’s National Association of Estate Agent’s has just released its predictions for property markets around the world. So far I have seen two versions of it reported, one stating that French property is more affordable than it has been for years, which, I found to be true in the prime and super-prime sectors, but the report I have just read now, on Spanish property has brought me to a conclusion:

The National Association of Estate Agents have reported negatively on markets throughout the height of the downturn. But now, when the tide of international confidence has turned and things are looking brighter, their members would not be happy/would revolt if they were not to do everything they could to assist in the turning of public opinion, the increase in confidence and ultimately to increase demand for property in the markets they serve.

And, further, now knowing this I must ask: has all the information they have disseminated in the last 18 months been solely to be informative about international property, or to build credibility and add weight to the message when it became positive.

The article that made me ask this was on Spain, the NAEA’s Des Rowson, the organisation’s spokesperson for Spain saying that investors should buy quickly to capitalise on rising house prices in the country.

Apparently Rowson conceded that the Spanish market endured a "difficult 2009", before highlighting the bargains that are currently to be had. He said that while the organisation doesn’t expect any significant changes before the pound strengthens, but still sees a 3% growth over the year, for that reason Rowson said:

"So if you are thinking of purchasing a property, do so in the early part of 2010," he noted.

To say that the Spanish market had endured a difficult 2009 is like the understatement of the decade. Yes, there are bargains to be had but prices won’t grow by 3% unless they can shift the 1 million unsold properties — left from the construction boom that saw Spain build more properties than Germany, France and Italy put together. And this will need to be done quickly to leave enough time for a growth of 3%.

This is clearly an attempt by NAEA to spur on the sales increases that have already been seen, as I said, I don’t blame them for this, it is just an observation. In reality though, the recent sales increases have been from bargain hunters, but there is no rush to secure a bargain; banks are holding thousands of properties back to avoid flooding the market, there’s a good few months left before the end of discounts and distressed sales in the Spanish property market.