1. CURRENT SITUATION AND FUTURE OF PRIVATE REAL ESTATE PROPERTY National report: SPAIN Mr. Angel Merino Berthaud, President "Real Estate Investments in Europe: Trends, costs & profits" The future of private housing

2. Stages of a speculative bubble

3. Average price of new housing in Spain

4. Housing census  Main Dwellings: usual residence of at least 1 person 14.184.026 units = 67,80%  Secondary Dwellings: used only for holidays or week-ends 3.360.631 units = 16,00%  Vacant or Empty Dwellings: available for rent or sale, or even abandoned 3.106.422 units = 14,80%  Other lodgings: available for successive rents of short terms 295.475 units = 1,40%

5. Spain demography

6. Euribor 1998 - 2007

7. Possible solutions  Existing Demand: it’s needed 300.000 dwellings/year  Impulse to the Refurbishment  Benefit Taxes: VAT reduction  Promote Ground Qualification

8. Conclusion TODAY  Unemployment level = over european average  High private sector debt = smaller purchasing power  Excess housing supply = destabilising effect on the price trend  Problems of the Eurozone = slugish economic covery TOMORROW  New Tax measures  Increase expenditure capacity  To boost the Renting market

9. National report: SPAIN Mr. Angel Merino Berthaud, President