Property market to be boost by the selling of public debt
"While a survey of the property market reveals global investors' growing appetite for repossessed homes, it also shows that Europe's poorest countries are worst off as they face rising repossessions while investment falls away.
The countries in the eye of the EU's economic storm – Ireland, Spain and Portugal and Italy – have "the highest net balance reading for likely forced selling," the survey conducted by the Royal Institute of Chartered Surveyors (RICS) reads.
In a worsening investment climate this is not good news for the EU's periphery".
Spain has announced plans to try to tackle the severe problems facing its housing market
The Spanish Government has decided to try to create more demand for new properties by cutting IVA (VAT) from 8 to 4 per cent thus saving a property purchaser a sizeable €8,000 on a €200,000 purchase.
Spain's economy was plunged into recession following the collapse of its once-buoyant property sector.
The government is also hoping that building projects will help create jobs and cut the unemployment rate, which is one of the highest in the eurozone.
A reduction in tax paid on new properties and incredibly low prices are set to boost the Spanish property market, according to real estate professionals.
The 50 per cent reduction in VAT is applicable until 31st December 2011 and has been widely welcomed by the property industry.