Spain cleans up its act

The Spanish property sector has recently come under increasing pressure to make its real estate sector more transparent, and according to international property consultants, Jones Lang LaSalle, that is exactly what it has done. Their 2008 Real Estate Transparency Index showed that Spain is making real progress and is now rated 10th in Europe and 16th in a world ranking of 82 property markets.

The Index measures legal frameworks, levels of professionalism, availability of reliable market statistics and corruption levels in real estate sectors worldwide. The 2008 Index showed that Spain had risen two places since 2006, from 18th to 16th. It is thought that the improved availability of information and greater professionalism in the Spanish property sector are the main reasons for Spain’s rise in the rankings.

James Gonzalez, Market Analyst at Obelisk, believes that tighter regulation is key to Spain’s improved rankings. “The Spanish government has got really tough and officials have been conducting snap inspections to ensure that agents are adhering to regulations. A good example is Decree 218, which requires agents to provide buyers with information similar to that available in the UK’s Home Information Packs (HIPs). Agents who do not comply are being prosecuted and obviously the tighter controls are helping in terms of transparency. This we can see from Spain’s new position in the Jones Lang LaSalle Index.”

Jones Lang LaSalle says that the Index provides a rigorous framework for comparing the levels of transparency across world property markets. The latest Index shows that almost half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency levels in the 2008 Index. They added that levels are improving across the world as governments work to streamline regulations and laws to improve cross-border movement of capital.

The increased transparency in the Spanish property market is a sign that the authorities understand its importance within the country’s economy. The market is starting to re-invent itself and according to the Spanish property portal, Kyero.com, buyers are using the current market condition to their advantage. Mark Stucklin of Spanish Property Insight agreed, suggesting that the downturn in the market had put an end to “speculative herd buying”, but was not deterring those buyers who had done their research and were using the market to get better quality at a lower price.

For more information, visit obeliskinternational.com