Overseas property professionals are looking to the new Spanish government to end the period of uncertainty in the markets.
It is hoped that there will be new tax cuts, economic stimulus packages, tourism initiatives and large-scale government sell-offs following this week's general elections, in order to stimulate growth in the country's property market. House prices have fallen dramatically this year with 21.5% overall unemployment and 45% youth unemployment affecting the economy.
Colin Guanaria, the founding partner of Bonnin Sanso, the biggest independent agency in Menorca, believes that the new centre-right Popular Party need to “dramatically reduce taxes for the building and housing sector including the property sales tax.”
What is needed, he adds, is “a major stimulus package for the tourist industry in an effort to boost tourist numbers. We have already seen this at a Balearic level with government and private industry partnerships collaborating and coordinating their efforts on marketing and promotion.”
Other property professionals are hoping that the new government will begin a major PR campaign to show those considering buying property in Spain that it's still a great place to invest.
“Spain still has arguably the best weather in Europe, is easy to get to and property is relatively cheap. So why are there not hundreds of thousands of Northern European property buyers flocking to snap up bargain properties?” says Chris Mercer of Murcia-based agents, Mercers.
“Just some of the reasons that have put many people off Spain are the scare stories of houses been demolished, land grab, corrupt town halls, and illegal building.”
“What is needed is a major PR campaign to win back the doubters, which needs to show real figures for what is happening on the ground. Spain has to go out there and sell itself,” he says. “After all, it should be an easy sell.”
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