Will the Spanish market recover following the example of Florida?

Will the Spanish market recover following the example of Florida?

Spain has always been called the European Florida, so why not compare the experience of American States and the European countries? ee24.com with the help of experts and Statistics compared the markets of Spain and Florida.

The Spanish market is depressed. Prices are falling in all segments. According to Spanish Property Insight, Florida's not so long ago demonstrated remarkable recovery from a serious crisis. After the failure in 2008-2009, when Miami market just collapsed, the situation straightened up to record levels on prices and sales in 2011 and 2012, and now all goes to the fact that the price level in 2013 will be the maximum for all 93-year-old city's history.

What was the driving force behind the revival of the market Miami?

Let's start with the fact that the U.S. economy is stronger than the Spanish, and obtaining a mortgage loan is much easier. But the miracle of Florida has three main reasons:

1. Confiscation of facilities for non-payment has led to a sharp decline in prices that the market has returned to life.
2. Institutional investors started buying immediately after the crisis, given the necessary impetus to the market.
3. And most important is the diverse demand for real estate in Miami by foreign investors. People go to Miami from banana republics like Venezuela to invest in real estate in order to preserve it.

And what is in Spain? Are there similar symptoms?

Promotions. The prices in the Spanish market are so small that may be interesting to many buyers. Low prices encourage international investors to invest in the market, thereby strengthening it.

Institutional investors. So far, despite the close attention of this type of investor, there are not so much transactions. But there is a good chance that the problem investors will help Spain, just as they have helped Florida.

International buyers have greatly aided Florida, and they have a very close attention to the Spanish market. Foreign demand for Pyrenees grew 12.7% over last year. On the Costa Blanca foreigners account for about 30% of the market, as well as in Miami in 2011. And this is all good news.

Can we assume that Spain will follow the footsteps of Florida? Dean Asher of Florida Realtors believe that certainly yes, as the Spanish government is doing some very important steps that will help attract more buyers from abroad. Foreigners from all over the world are buying more items every year. Hardly growth will be as rapid as in Florida, but slowly Spain will return to pre-crisis levels and continue to rise, the expert believes.

Text: Ivan Ulitin, ee24.com