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“In these almost boring times of generalized growth, the press is particularly eager to look for catastrophic events in the perennial quest for the newest ‘sick man’ of Europe. Having read the Directors’ preliminary statements, I realize that we probably overstressed our disdain for this press coverage, which one could call the ‘momentum catastrophicum literature’.”

rent to own in Valencia 300x225 - Spain played down IMF fears of real estate bubble burstingThese were the words of the executive director for Spain, Ramón Guzmán, at a meeting of the International Monetary Fund executive board held on May 16, 2007 to analyze the Spanish economy, the minutes of which have now been declassified.

Economic activity in Spain at the time was being buoyed by the boom in the housing market, while consumer spending had peaked. As such, the IMF was greatly concerned about the chance of the bubble bursting, and a subsequent crisis.

The initial statements from the rest of the executive directors drew attention to the notable differences between the vision of the analysts who had been examining the Spanish economy, and the vision of the authorities in the country regarding the risks of the economic situation. Guzmán wanted to clarify that these discrepancies had been “misinterpreted,” and that if in his opening statement he had said that the consequences of a slowdown in the real estate market were often “overestimated,” what he was trying to reflect was “the extensive coverage that property market developments receive in the domestic and international financial press.”
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For the second time in just a few weeks, positive figures have been issued about the property market in Malaga. Earlier this month, figures from the National Institute of Statistics revealed that property sales in Malaga province had risen for the first time since the beginning of the crisis, and now figures from the Ministry of Public Works show that the number of property transactions increased more here than in any other province of Spain in the third quarter of this year, compared with the same period of 2012. There was an increase of 25.4 per cent, bringing the total number of sales to 5,059.

foto 925327 300x225 - Malaga, The Province with the Biggest Growth in Property SalesThose in the property sector are crossing their fingers and hoping that the trend continues. The Costa del Sol and the Levante region were the first to enter recession and may also be the first to come out of it, according to reports issued by the Ministry which show that after Malaga, Almeria, Barcelona and Murcia are the provinces in which the most properties were sold in July, August and September, compared with the same months last year.

Nevertheless, property developers point out that Malaga province offers a climate and infrastructure with which the Levante region cannot compete, even though it may be cheaper to buy a property there. “Nobody can beat us in terms of climate and services”, says Violeta Aragón, the general secretary of the Association of Builders and Developers (ACP).
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