The RICS Global Real Estate analysis released mid-November was rather sombre in its outlook on Spain. With Spain at the heart of the present Euro crisis it could hardly be otherwise, but in quoting official statistics on mortgage lending, property values and economic growth, the report indicates that on a national level home purchases, property values and GDP growth has all slumped again, spelling out a difficult year ahead.
In general regarding Spain as a whole, I agree with what has been said,” says Campbell D. Ferguson of Survey Spain. “The level of debt in the economy, both institutional and personal, is huge and it will take many years for that to be removed. Effectively, the years of boom were based not so much on increasing productivity and wealth, but largely on borrowing from the future. The future has now arrived and the debts have to be paid.” Continue reading