Spanish Property Cleans Up Its Act
Aug - 04 | 
2 comments. | 
Overseas Property News, Spanish Property
The Spanish property sector has recently come under increasing pressure to make its real estate sector more transparent, and according to international property consultants, Jones Lang LaSalle, that is exactly what it has done. Their 2008 Global Real Estate Transparency Index showed that Spain is making real progress and is now rated 10th in Europe and 16th in a world ranking of 82 property markets.
The Index measures legal frameworks, levels of professionalism, availability of reliable market statistics and corruption levels in real estate sectors worldwide. The 2008 Index showed that Spain had risen two places since 2006, from 18th to 16th. It is thought that the improved availability of information and greater professionalism in the Spanish property sector are the main reasons for Spain’s rise in the rankings.
James Gonzalez, Market Analyst at Obelisk, believes that tighter regulation is key to Spain’s improved rankings. “The Spanish government has got really tough and officials have been conducting snap inspections to ensure that agents are adhering to regulations. A good example is Decree 218, which requires agents to provide buyers with information similar to that available in the UK’s Home Information Packs (HIPs). Agents who do not comply are being prosecuted and obviously the tighter controls are helping in terms of transparency. This we can see from Spain’s new position in the Jones Lang LaSalle Index.”
Jones Lang LaSalle says that the Index provides a rigorous framework for comparing the levels of transparency across world property markets. The latest Index shows that almost half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency levels in the 2008 Index. They added that levels are improving across the world as governments work to streamline regulations and laws to improve cross-border movement of capital.
The increased transparency in the Spanish property market is a sign that the authorities understand its importance within the country’s economy. The market is starting to re-invent itself and according to the Spanish property portal, Kyero.com, buyers are using the current market condition to their advantage. Mark Stucklin of Spanish Property Insight agreed, suggesting that the downturn in the market had put an end to “speculative herd buying”, but was not deterring those buyers who had done their research and were using the market to get better quality at a lower price.
News submitted by Alison Kane, Obelisk International
Your posting is an absolute crock. The Spanish property market has been hit by a never ending stream of bad news involving corruption scandals, illegal building, demolition threats, land grabs, over-development, dishonest and corrupt estate agents, corrupt and incompetent lawyers, tales of huge, obscene commissions and countless stories from unhappy owners, buyers, and investors.
I am tired of pictures of foreigners standing beside the rubble which was once their homes having been conned by estate agents into building on rustic land or let down by lawyers who should have informed them that they were.
For too long Spain has abused the foreigners which have contributed so much to the Spanish economy but now the simple fact is the situation is over. The days of greedy constructors raising the price every 14 days are no more and in many cases neither are those constructors.
It is difficult to know the real situation with Spanish property because government figures are affected seriously by the under declaration of purchase prices but it is safe to assume that it is far worse than they state.
Spain had it’s golden opportunity but instead of seeking to make the most of what it had it made the decision to build crap and sell it at the highest possible price. The amount of theft, fraud and other crime associated with the Spanish property market should cause people with more than 2 neurones to give it a wide berth.
Only when the market is absolutely transparent and 100 per cent safe should it be given any attention by foreigners.
And that is going to be a long, long time.
This article is not representative of the real facts in Spain.
As much as I find J. De Vriesd’s comments hard to accept, They are probably the nearest to the real situation in Spain right now.
To get confidence back for spain , with the current politicians we have in charge— Impossible.TRULEY SAD.