What is the best way to salvage the sinking real estate sector from utter disaster thanks to the nasty effects of global downturn on national economies? This question is being pondered not only among the real estate investors throughout the world, be it globally acclaimed or the diminutive ones, but also among the governmental circles. The governments are really worried since the domino effect of this crush may devastate the job sector also since real estate is one of the greatest employment sectors in unison.
According to the real estate sector, the respective government is required to come out with the bail out package or else there is no such hope. Well, this standpoint has been accepted and several governments have come forward also. But it is also seen that the governments are having their on viewpoints also and are found to provide wise sermons to the real state sector.
One of them is Spain and its Minister of Housing Beatriz Corredor. He has appealed to the Spanish real estate sector to be “logical” and bring down their prices to stimulate buyers and the market and also to save the market from a virtual standoff. Though the concerned government has already taken note of the persistent appeals of the private sector to bring it out of the danger, it has asked them to take definite steps to salvage their untouched portfolio.
What has been the reaction of the market? Well, though a certain section of the real estate sector has taken a strong exception to this suggestion, another part has also advocated the Minister’s outlook. One of them is Guy Marrison of Marrison Properties, a Marbella Real Estate Agent.
He said, “The minister was rightly stating that average incomes in Spain at present do not correlate to average house prices.” “Property prices in Spain are approximately 7 times the average annual earnings; historically this number has always been around 4 times average earnings.”
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