News.World-Estate.com: A fall in Real Estate market prices: should we panic or cry of joy -EIN News/ December 2, 2008
It has started on different time and different size, though has started everywhere. The price of Real Estate property is decreasing anywhere. Should one be happy about it or – panic? It depends on whom you support.
A fall in prices always is a worm for sellers and an apple for customers. Despite the companies working directly with Real Estate market in different circumstances potential customers or sellers might become anyone of us.
Depending on a current situation, a fall in Real Estate prices is a joy for some people as they might buy accommodation in lower prices. For others who have bought their house on credit it might become a huge headache. However, it is Real Estate market developers who should be concerned the most.
International media recently has spread the news about problematic Real Estate situation in Spain with bankruptcy cases. During the last decade Spain was a country which had the most severe construction market “fever” in whole Europe. Though more project have been developed there then ever needed. According to the statistical data, more than 15% of all houses are empty. News.World-Estate.com observe that the bubble is collapsing now.
Analyzing the situation in Spain in a greater detail, we might see that third parties (i.e. sports or culture organizations which were mostly sponsored by the Real Estate market companies) are also suffering from the crisis in Real Estate market. At the moment such institutions are forced to crop their budgets or even stop their job.
However, it is Real Estate market companies which suffer the stagnancy in the market the most. Redundancy touches everybody from CEO’s to ordinary workers. The latter are forced to acquire any positions and name the crisis as the biggest curse.
But on the other hand crisis has some advantages. Firstly, it is purifying the market. Those who have reserves will remain in the market, others – won’t. In this case some stick to a rather radical opinion that the faster the market will be purified the quicker it will recover and everybody will be fine again. Though anybody wants simply “to die”. So forecasting the change in situation is hardly possible – and News.World-Estate.com hesitate to do that.
Construction companies, partially, might accuse themselves now. All businesses are in some way “wavy”. Get on the crest and you might become wealthy. Though at the same time you must feel the ground under your feet and get out on time.
Greedy pays twice, foolish – thrice. Interpreting such a saying, if construction companies are “greedy”, who is the foolish? Hopefully, during the following years the answer will appear.
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World-Estate.com project manager
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