Spanis property developments

Spanish property developments

In the aftermath of the bursting of the property bubble, Spain's property market is struggling. Spain's construction industry fell by 3.9 percent between October and November 2007, the greatest drop in the Euro Zone, according to Eurostat. In second place, Portugal's construction sector decreased by 2.8 percent, with Slovenia close behind at 2.6 percent. Germany and France were a distant fourth and fifth, with drops of 0.7 percent and 0.4 percent, respectively. The average drop for the entire Euro Zone was 0.8 percent.

At the height of the property boom, Spain became increasingly dependent upon the property market to fuel its economy. In 2005, 7,000 real estate agents were in operation on the Costa Blanca alone, according to The Daily Telegraph (U.K.). In 2006, Spain constructed more new homes than Germany, France and the U.K. combined, even though Spain has about one fifth of the total population of those countries. So when the bust inevitably reared its ugly head, the country was left with a long way to fall.

Depending on where investors' existing properties are located, it is possible that they could take advantage of Spain's successful tourism industry and weather the slump by renting to international holidaymakers. There are the coastal regions which are in great part driven by foreign buyers. And then you have the interior where it's a more domestic market and immigrants and economic migrants abide. Although both sections of the market are dead as far as purchasing goes, investors with property along the coasts may be able to find enough holiday renters to get them through these hard times.

For more information on how you can reclaim your deposit or execute a bank guarantee, visit www.spanishpropertyactiongroup.com