Tuesday, May 22, 2007
From Weekly Report 18.05.07 Ciudadanos Europeos
The new national Ley del Suelo has been approved, forcing promoters to give 5 to 15% of the plots in each new urbanisation plan to the town hall, and include 30% for social dwellings (VPO). Prime minister Rodriguez Zapatero is using the law in the election campaign, assuring it will end speculation and corruption. The association Abusos urbanisticos NO has strongly been criticising the proposal since the law permits expropriation of small owners of farm land at a very low price, that the promoter then sells on with great profits
There are 12.000 registered real estate agents in the province of Alicante, more than in any other provinces than Madrid and Barcelona. A representative of the registered agents in Valencia has admitted that the prices for second hand dwellings have gone down up to 18%. From other areas come reports of even greater reduction in prices for second hand property, and waiting time for sale of up to 20-30 months.
The promoters in the Valencia Region are still starting up the construction of 100.000 dwellings this year, admitting that they will not be able to sell 20.000 of them. They admit that sales to European citizens have dropped up to 50% in certain areas. They have now raised the sales commission to real estate agents to 8% in a desperate attempt to get rid of their surplus stock, in addition to giving premiums of all kind to new buyers. The company GV, promoting a golf project in Bonalba (Alicante) is promising a cheque of 4.000 Euro to any new buyer………
The illegal construction of 1.376 houses and 980 swimming pools in Elche threatens the socialist led municipality of having their urbanistic competences withdrawn by the PP government in Valencia.
Several big promoters are leaving Spain, going to other countries where the grass is greener. Hansa Urbana has bought 35,5 million m2 in Mexico to make a luxury project for the American market. Grupo Roig in Valencia has also invested 500 million Euro in another luxury project in Mexico.
300 cases have been opened to demolish houses in Catral, by the regional government. Another 100 houses under construction have been refused water and electricity.
Another 4 people have been arrested in Telde, Gran Canaria, accused of being part of the ongoing corruption scandal. One of them is the leader of the town planning office, the other 3 representing private property companies.
Morgan Stanley has been evaluating the property scene in Spain. One of their conclusions is a decrease in the property sector by 20 to 70%.
The new national Ley del Suelo has been approved, forcing promoters to give 5 to 15% of the plots in each new urbanisation plan to the town hall, and include 30% for social dwellings (VPO). Prime minister Rodriguez Zapatero is using the law in the election campaign, assuring it will end speculation and corruption. The association Abusos urbanisticos NO has strongly been criticising the proposal since the law permits expropriation of small owners of farm land at a very low price, that the promoter then sells on with great profits
There are 12.000 registered real estate agents in the province of Alicante, more than in any other provinces than Madrid and Barcelona. A representative of the registered agents in Valencia has admitted that the prices for second hand dwellings have gone down up to 18%. From other areas come reports of even greater reduction in prices for second hand property, and waiting time for sale of up to 20-30 months.
The promoters in the Valencia Region are still starting up the construction of 100.000 dwellings this year, admitting that they will not be able to sell 20.000 of them. They admit that sales to European citizens have dropped up to 50% in certain areas. They have now raised the sales commission to real estate agents to 8% in a desperate attempt to get rid of their surplus stock, in addition to giving premiums of all kind to new buyers. The company GV, promoting a golf project in Bonalba (Alicante) is promising a cheque of 4.000 Euro to any new buyer………
The illegal construction of 1.376 houses and 980 swimming pools in Elche threatens the socialist led municipality of having their urbanistic competences withdrawn by the PP government in Valencia.
Several big promoters are leaving Spain, going to other countries where the grass is greener. Hansa Urbana has bought 35,5 million m2 in Mexico to make a luxury project for the American market. Grupo Roig in Valencia has also invested 500 million Euro in another luxury project in Mexico.
300 cases have been opened to demolish houses in Catral, by the regional government. Another 100 houses under construction have been refused water and electricity.
Another 4 people have been arrested in Telde, Gran Canaria, accused of being part of the ongoing corruption scandal. One of them is the leader of the town planning office, the other 3 representing private property companies.
Morgan Stanley has been evaluating the property scene in Spain. One of their conclusions is a decrease in the property sector by 20 to 70%.
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