More Than 100,000 People Lost Their Jobs in the Spanish Property Market
Due to the economic crisis and stagnation in the housing sector in 2007-2008, almost half of estate agencies in Spain have already been closed.
In the past four years some more 30% of real estate companies have closed their doors due to adverse market conditions. So, about 85% of Spanish real estate agencies have left the market if compared to their number in 2006. This fact have left more than 100,000 people, who were employed in the real estate industry, jobless and only 42 thousands remaining in the industry by the end of last year.
According to experts, the property crisis has mostly affected individual real estate agents, who started their business during the housing boom leaving alive only companies best fit for tighter competition - with multi-year experience in the industry, good market expertise and awareness of customer needs.
The changing market environment has urged realtors to develop and employ new tactics and practices: they have started to rely on sales via the Internet more, use franchise scheme more actively, closer co-operate with their colleagues and share running costs and diversify their business by strict specialization in specific segments of the real estate market (commercial premises, garages, industrial buildings, luxury housing, etc.).
Spanish authorities are devising measures to revive the country's real estate market. One of the steps recently taken to attract home buyers from abroad is residency granting scheme, which is expected to encorage property investors from Russia, the Middle East and Asia.