In a global economy where investors expect to be punished rather than rewarded, and consumers are wary of overseas home purchases because the developer may go bust, are we witnessing the death of off-plan? “It is nearly deceased,” claims Mark Jeffery, founder of Landscope Capital. “Many developments will fall by the wayside, particularly in secondary locations. Developers will have to have outstanding locations, areas that people really want to live in or holiday in and which can genuinely stack up as a capital and/or rental investment”. With banks far less willing to lend to developers, and homebuilders still … Continue reading IS OFF-PLAN DEAD OR ENTERING A NEW PHASE?
Spanish Prime Minister Jose Luis Rodriguez Zapatero has announced his government’s intentions to provide developers with a €3billion lifeline to help certain companies survive the economic downturn across the country. Speaking at a press conference on Wednesday, Zapatero outlined his plans amidst severe criticism of his government’s handling of the country’s economic situation, which has left over 2.5 million people unemployed – the majority from Spain’s once booming property sector. Under the plan, the government would provide struggling developers, unable to raise finance due to the large amounts of unsold stock and the credit crunch, financial assistance on the condition … Continue reading SPANISH GOVT THROW DEVELOPERS A €3BN LIFELINE