Investor opinion on whether this is the best time to invest in Investment property is deeply divided. When asked if now is a good time to invest in commercial property, 1/2 of respondents saying “yes".
While several of those commenting said they expected the commercial property market to stagnate over the coming year, some took the view that property was on the up, and others said they had already invested and intended to remain so. One commented hopefully: "I'm praying it's also time to invest in residential as well".
Oversease the news is mixed, Developers in Dubai are considering letting out units in their new projects on a furnished basis to generate immediate revenue, said real estate analysts.
"Some developers will want to convert their newer developments into furnished apartments for short, medium or long-term tenancies due to the current market conditions," said Mohammed Nimer, Chief Executive Officer of MAG Property Development.
Spanish mortgage leader declares real estate industry is bankrupt. In a somewhat shocking and worrying statement a leading Spanish lender has declared the country’s real estate sector is ‘bankrupt’.
According to Santos Gonzalez Sanchez, president of the Spanish Mortgage Association who speaks on behalf of the country’s mortgage lenders, there is so much debt in the industry that finance for property development has effectively dried up.
‘The real estate sector is bankrupt,’ he said, pointing out that Spanish developers had a combined debt of €324 billion in the third quarter of 2009, the equivalent of around 30% of Spanish GDP, according to figures from the Bank of Spain. The interest bill alone is around €15 billion a year.
More than 50% of the debt was used to buy land for which there is now no market. ‘Whilst those plots of land are not properly valued, the financial system can’t start afresh and won’t be able to finance new homes,’ Gonzalez told the Spanish press.