Spanish housing market set for a fall?

Spain’s economy is slowing more sharply than expected and this has big repercussions for those investing in the country, with many talking about the Spanish property bubble imploding.

The Spanish Government has already made moves to help counter the problem and have announced they plan to spend around 10 billion Euros in an economic stimulus package that is intended to soften the blow of any future housing crisis.

The signs aren’t looking good – according to some quarters, orders for new houses are down significantly and many builders in Spain have resorted to offering ‘extras’ with their homes such as free cars, mortgages holidays and in some cases, cash. Consumer durable purchases have also declined – items such as washing machines and kitchen equipment have dropped by a whopping 32 percent in March alone.

There is so much worry about the economy in Spain that some believe that they may abandon the single currency and resort to their own currency.

It isn’t all bad news though – if you are set on buying a new build property in Spain in the next few months, it is an excellent time to see how many freebies you can get thrown in with your build. It is important to check what other local builders are giving away, and use this as a bargaining tool for your own purchase. However, many are advising caution and believe that it may be prudent to wait a few months to see how the Spanish housing market fares before taking the plunge and buying any Spanish home.

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