We have just entered 2021, and as every beginning of the year, it does not hurt to look ahead and check the real estate trends the new year brings us. Keeping up to date with the real estate sector is the best way to make the best decisions for the near future....continue reading "Real Estate Trends for 2021"
The coronavirus crisis has affected all economic sectors and among them, of course, the real estate sector, which has only recently recovered from the deep crisis it suffered in 2008. During the first quarter of 2020, the Housing Prices Index in Spain rose 1.1%, according to the National Institute of Statistics (INE, for its initials in Spanish). But the lockdown marked a turning point and the post-COVID-19 forecasts are not very encouraging in the short-term, although the dip is small compared to the previous crisis....continue reading "Post-COVID-19 forecasts in the real estate sector"
At the end of December, the Chinese authorities detected the existence of a new coronavirus (the so-called COVID-19) in the city of Wuhan. In January, the World Health Organization (WHO) decreed a global health emergency and real estate markets were shaken. To what extent should we worry about the impact of the virus on the real estate sector?...continue reading "Coronavirus effects on the real estate sector"
“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’.”
These 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.”
...continue reading "Spain played down IMF fears of real estate bubble bursting"