|
Home / Business
Is Non-Regulation Hampering A Property Market Recovery in Spain?
By:Neil Ebsworth
Regulation and red-tape are normally the dirty words entrepreneurs blame as hindrances to the capitalist art of making good profit. Money is best made when business can flow freely and market forces are left to their own devices. Certainly true in markets that show healthy demand and confidence, but in less affluent times when global credit issues have knocked confidence in a property market across the globe, is the lack of standards and some form of regulation simply fanning the fires of insecurity and hampering the recovery.
The Spanish Property Market is a case in point. Hit by planning scandals and over supply of new developments in the south. LRAU land grab in the East and topped off with the global credit crunch, it is not surprising that times are no longer as rosy for Agents in the Spanish Market.
Yet reports that show a steady increase in the numbers of UK residents still moving abroad and traveler statistics through Alicante airport showing over 50% of traffic is coming from the UK would suggest that the buyers are still coming in ever increasing numbers.
So what is the problem? Are they coming to look and not buy? Is the lack of confidence in the market making them hold back unless they find the deal of a lifetime before committing to a purchase.
Confidence maybe the biggest issue holding back buyers from making that purchase. A lack of confidence in prices. Confidence in Agents and the lack of representation for buyers who are traveling across borders to make a huge investment decision in a market renowned for dodgy deals and rogue agents.
What would some form of regulation bring to the market?
If you compare a regulated market such as the US with that of Spain, there are several issues that may help the Spanish market.
Representation of the Buyer is distinguished from that of the Listing Agent
A single market of property provided by the Multiple Listing Service effectively providing agents with the entire market as their property register.
Co-operation between agents.
Education standards.
All these issues build confidence in the buyers mind and help agents effectively act for their employer whether it is a buyer or seller.
It could be argued that even with regulation the US market is struggling to cope in the same way as the Spanish market. Whilst this is true, the underlying reasons are more supply/demand led than in the Spanish market.
In the US the market is suffering a correction to historic price rises and a mortgage crisis that has seen lenders reduce the ability of people to borrow enough money to sustain the cost of purchase thus killing the demand.
In Spain all indications are that buyers are as present as ever but they are currently choosing not to buy but are watching the market to see what happens next.
If confidence is the key to helping them make that decision to buy, then maybe some form of regulation may provide the answer.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: Spanish property, Spanish property for sale, Costa Blanca Property, costa del Sol property
Article Source: http://www.articles2k.com
Neil Ebsworth is co-founder of AMLAspain.com, TheSpanish property MLS. A portal for Spanish Property for sale for the Real Estate industry in Spain.
|
|
| Top Business Articles |
- 1). A plus C Systems and Affirmative Insight, Inc. announced an exclusive partnership. By : Bartosz Lewandowicz
Affirmative Insight Inc. provides information technology solutions in the areas of IT security, networking, service and support, e-business, web design, web hosting and software development. By partnering with A plus C Systems, Affirmative Insight, Inc. expands its offer with a comprehensive suite of software products – Uplook, Statlook and Anasil – tool kit for IT asset management and network monitoring.
|
|
|
- 3). The Thick Line Between Buddy And Boss By : Tim Knox
Q: One of my key employees is giving me trouble. He has started showing up late for work and has developed a bad attitude in general. The rest of my employees are complaining since they are having to take up his slack. I've tried talking to him, but he doesn't seem to listen. To make matters worse, he has become one of my best friends since I hired him five years ago, so firing him is out of the question.
|
- 4). The Man Who Makes $1 Million in Affiliate Commissions By : David Kamau
His success is phenomenal. Well, not many can claim to make $1 Million a year in affiliate marketing. And at only 27 years of age!
His name is Jeremy Palmer. Until recently, he was virtually unknown in the marketing circles, simply because he preferred to make his money silently.
Now this Jeremy guy has written an ebook about his affiliate marketing techniques.
|
- 5). Overcoming Obstacles By : Debbie Milam
Discover how a young woman overcame serious life challenges through connecting with her inner spirit.
My story begins 38 years ago in Queens
|
- 6). International Investment In Bulgaria Still Strong By : Tim Wright
The strong growth in the Bulgarian economy is continuing and this is emphasised by the confidence in the market shown by companies such as GE for example.
GE Commercial Finance Real Estate recently announced it will be acquiring a 50% stake of the Mall of Sofia. The Mall is an enormous trade, business and entertainment centre currently under construction in the heart of the capital city.
|
|
|
- 8). Should we believe the experts? (Part III) By : Mike T. Davis
Why do we use experts? To predict the future. Consider a patient who is asking a physician about the future effects of a certain drug, or the investor who is asking a stock analyst about the future prices of a certain stock, or the manager who is asking a human resource manager about the future performance of a certain candidate, or the brand manager who is asking a market researcher about the future sales of a certain new product.
|
|
|
|
|
| New Business Articles |
|
|
|
|
|
|
|
|
|
|
- 6). How To Find Low Cost Items That You Can Resell For Profit By : Gregg Hall
The key factor in the success or failure in a business that specializes in closeouts, liquidations, or selling products on eBay is finding items at good prices that you can make a profit on when you resell them. Contrary to popular belief it is when you buy the item that you make your profit as what you pay for something is what determines how much your end profit will eventually be.
|
|
|
|
|
|
|
|
|
|
|
