Seems the market in residential tourism in Spain is slowing dramatically just when there is a lot of invetory on the market. Some adventurist Spanish developers have moved into the Panama market in hopes that it will continue to be strong in the face of a global real estate deflation. Lets hope they are right!
From La Prensa
Developers seek new opportunities in Eastern Europe and Latin America, including Panama.
Big companies are moving into the office, commercial, and industrial real estate markets.
| LA PRENSA |
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| Recession: According to the Spanish housing ministry, total home sales during the second quarter of 2007 fell 16% compared with the same period in 2006. 975424 |
As the real estate bubble in Spain deflates, Spanish investors and developers are looking for new markets that don't show the signs of exhaustion symptomatic of markets in Europe and the U.S. Some have already made inroads in Eastern Europe and Latin America.
Adolfo Olloqui, vice president of the Spanish Corporación Iberoamericana de Negocios, says "the recession in Spain has forced developers to seek markets with new potential, as is the case in Panama."
The Spanish real estate market clearly moved into a recession in 2007 after many years of vigorous growth.Ignacio Pindado, CEO of the consulting firm Grupo i, noted that "in 2006 the market didn't enjoy the same rhythms of absorption as earlier." In 2007 demand dropped and unsold houses sat on the market.
The global economic situation has contributed to the
slowdown in real estate, as have climbing interest rates in Europe. The
U.S. subprime crisis has affected Spain as well. According to Pindado,
most people don't understand what's happening very well, "but they've
been dissuaded from buying a home.
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