The Catalan Regional Government announced yesterday a new initiative to improve legal confidence in real estate. The initiative is mainly thought for foreigners who may buy properties in the coast. Although the specific measures have not been decided yet, it is important to improve protection to avoid the legal problems that we have all seen in the past.
There is an important reason to make the region attractive for potential purchasers and that is the huge stock of new housing that Spain accumulates since the beginning of the economic crisis. The building industry is almost collapsed and unemployment is the main worrying for Spanish population. The Mediterranean coast is full of new apartments and bungalows waiting to be sold. The local incomes have decreased and tourism continues to be a reliable economic sector.
Catalonia might be the first region inSpain developing a quality brand on the properties in the region. I am not sure how the Catalan Government will manage to implement it and more importantly how it will manage to keep a quality control over the sale of properties around the area but it is an interesting initiative that may boost confidence in the purchase of properties in that specific region. However, these measures may not be sufficient if the properties in Catalonia do not reduce their prices. There are wonderful places in Catalonia but some of them are not affordable to the average foreign purchaser. A combination of quality controls and more affordable prices could make Catalonia the new place to invest.
Photograph by Rafael Laguillo www.dreamstime.com