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EU Property Solutions- Experts in all Spanish property issues

EU Property Solutions offer professional assistance and advice in all areas of European property in particular, Spain. We can help provide strategies and solutions to solve problematic property issues, negotiate with lenders on debts, help reclaim lost deposits on unfinished developments and help with repossessions and mortgage arrears across Europe. We have offices in London, Belfast and Spain.

Own a house abroad? What is a property bubble?
Friday, November 3, 2017 @ 10:04 AM

What is a property bubble and how could it affect you if you own a house abroad?

At present, the housing market across Europe is unstable and changeable. Prices in some European countries such as Ireland, Lithuania, and the Czech Republic are steadily rising, prompting fears that another property bubble could occur. You may have seen the phrase property bubble being splashed across different articles and headlines, but do you actually know what it means and how it may affect you if you own a house abroad?

Keep reading to find out exactly what a property bubble is and the implications of one setting in.

A property bubble is an increase in housing prices which is prompted by higher demand in the face of limited supply, which can take a long time to readjust and increase.

Speculators will enter the market in order to trade during a time of higher risk, hoping to capitalise on higher profit margins. This will further drive demand, which will at some point decrease as supplies simultaneously increase. This results in a sharp drop in prices, and the bubble bursts.

How will a property bubble affect you?

If you own property in a country within the EU that is in a property bubble, this could be interpreted as being a good thing. An increase in demand and prices may mean that, if you are looking to sell your property, you will be able to do so more easily and will benefit from a higher return.

However, it is important to remain vigilant regarding property bubbles, as once they burst prices will drop significantly, which could leave you in a situation where you receive less money than you hoped for your property. You may even be left in negative equity.

The Spanish property bubble

The property bubble in Spain burst in 2008, before which the country had been building more homes than the UK, Germany, and France combined.

Brits also forked out millions for holiday homes that were never built, but luckily many will be getting this money back as Spain’s Supreme Court opened the way for around 130,000 Britons to claim directly from banks.

If you have any questions about property bubbles or are concerned about selling your property abroad, get in touch with us and one of our friendly and highly-qualified staff will be happy to offer you assistance.



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sarvar295 said:
Wednesday, October 20, 2021 @ 12:16 PM

Hi guys

I also propose to consider the option of investing in real estate in Dubai.

Residential investments in Dubai gain rental returns for investors and are a popular choice. In 2017 alone, 69,000 real estate transactions were made in Dubai, which exceeds a total of AED 285 billion. In 2016, the transactions totalled AED 259 billion through 41,766 deals. Another outlet for investment in Dubai is investing in the hotel property market. The investor buys a hotel room, and as the room in occupied by guests, the investor receives regular rental income. Hotel property investment in Dubai is considered a stable investment choice. This is because the tourism industry in on the rise and continues to hold a larger share in the country’s GDP every year. Hotel investment in Dubai is also a fully-managed asset-class. Therefore, the hotel management company is responsible for maintenance, advertising and other day-to-day matters.
There are many firms who can advise to invest in property in Dubai, for example: real estate agency in Dubai https://www.axcapital.ae/
Choosing a reputable developer is as important as investing in a good location. Investing in Dubai with a company that is well-known in the region and offers the best investment opportunities in crucial.


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