In order to fix economy matters, government of Spain has gone for austerity cuts and the housing sector is the worst affected.
Spain is facing a financial crisis and worst employment situation ever seen by the country. There has been combination of unemployment with austerity cuts. Almost 40% of the workforce is out of work.
The country is plagued by cuts, rising rent, mortgage repossessions and direct action by unlawful tenants. It is providing a glimpse of a future that may bring troubles for the citizens.
The leftist leadership of Andalusia has taken some measures in Spain in order to prevent bank evictions against the orders of conservative government in Madrid. The party has also penalized banks and property firms for possessing vacant properties. However, these measures taken by the party are temporary and taken for helping people, who are badly affected by the ongoing recession in the country.
As per media reports, financial major Santander plans to sell one third of its real estate assets to risk capital funds to raise money. Santander has not commented on the report which says that the risk capital funds have offered a valuation nearly 70 per cent lower than the earlier valuation of assets at 3 billion euro.
Acciona will work on a joint project with India based Connect Power to develop wind energy power plant in Gujarat. The company will develop 600 megwatts of wind Power plant in Gujarat.
Spain’s government has reduced the tax on the new home purchases by halves in order to motivate the injured property market.
The indebted construction companies and property developers appealed the government to take some steps to overcome the market hitch. The government has decided that the Value Added Tax will be reduced by 4% by the end of the year. The tax reduction on the new flats has been nearly 8%.
It has been revealed by the government of Spain that that they shall work as a helping hand for the people who are unable to pay their home loan mortgages. This has been done in order to try and help the people who are jobless ad have heavy loans to pay, it is a way of trying to bring back the economy of the nation back to track.
As per the official figures, Spanish house prices slipped on a slower pace in the first quarter of 2010.
Moreover, talking to media, the Ministry of Housing said that house prices declined 4.5 percent year on year in the first quarter of this year as compared to 6.2 percent in the last quarter.
Further, the fall eased for the third quarter, and it was the sixth fall in a row. Costs declined by 8.2 percent a year ago.
House prices slumped 1.3 percent on a quarterly basis.
Meanwhile, some more studies also showed fall in Spanish house prices.
According to the data released, Spanish home sales increased in the month of February, but the country’s battered real estate market remained in the doldrums as property costs continued to decline.
Moreover, house sales increased by 18.7%, the National Statistics Institute announced that for the largest monthly growth since the index was created in 2007.
It was also second successive month of increases after an increase of 2.1% in the month of January.
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