The Rain in Spain Stays Around For Property Market

It's a lyric in the musical My Fair Lady, and the wordshomes, commercial real estate, mortgages, public
are "The rain in Spain stays mainly in the plain." Fromdevelopments, professional and consumer services.
1997 to 2004, property prices in Spain rose aroundOne source put the attendance at more than 43,000.
173%. It was a sunny time for property investors,These are primarily real estate professionals, investors
building trades, and the economy as a whole. But,and construction interests, and there were reportedly a
today's picture is very different. It's raining, and the rainlarge number of property sales during the event.
isn't staying put "in the plain." Real estate is depressedHowever, others say that the discounts being offered
just about everywhere in the country, and the effectsto generate business weren't as substantial as they
ripple through the economy.should have been to help the struggling real estate
Talking recently to Radio Nacional de Espana,market.
Joaquín Almunia, the EU Commissioner forReports of falling tourism and a 13% decline in foreign
Economic and Monetary Affairs stated that heresidents in Spain aren't helping to improve the short
believes the 3.5% growth of the U.S. economy signalsterm outlook. The Bank of Spain recently announced
the beginning of the end of the crisis there. But, thethat it will require a doubling of the provisions banks
recession in Spain is linked closely to the collapse ofmake against bad debts resulting from real estate
the real estate market, and thus will be a lot slower toforeclosures. The new requirement will be increased
improve. Celestino Corbacho, the Minister forfrom 10% to 20%. If a song lyric points out the tough
Employment, is not upbeat at all, saying thatsituation, maybe another couple of old sayings will help
unemployment in Spain is burdened with the "deadto cheer up those involved in real estate in Spain. "The
weight" of the construction industry.darkest hour is just before the dawn," and "Every
Salon Inmobiliario de Madrid, held Oct 22 through Octcloud has a silver lining" could apply as well. Spain's real
25, is the biggest European exhibition in the propertyestate markets are certainly looking for a break in the
sector, and one of the largest in the world. Exhibitorweather.
profiles include new and second hand homes, holiday