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.

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.

According to recent reports, the construction output in the Euro Area has been slipped by 2.2 percent in the month of January 2010 as compared to December 2009.

Moreover, in the wider EU 27 region output was 2.0 percent lower.

Among other member states, construction productivity had dropped in eight, while increased in Slovenia by 7.1 percent, Sweden by 2.7 percent and the United Kingdom by 0.9 percent.

However, the biggest falls were recorded in Czech Republic by 22.0 percent, Germany by 14.3 percent, Bulgaria and Spain both by 6.1 percent, respectively.

According to latest data revealed by Property-Abroad. com, Spain has gained popularity among the potential property. It has become the second most seek out destination for property investment.

Spain’s holiday villas have succeeded in attracting the attention of property buyers.

In its report Spanish property website, Kyero. com said that there was a 63 per cent rise in the number of unique visitors to website for the very first week of 2010 in contrast to same period last year.

Spanish property rates have not bottomed out, and the property in the country was over valued by 30 percent with only declined 10 percent.

The biggest house price falls to come are probably to be in the holiday hotspots where many overseas buyers have brought and will be headed by the banking institutions.

According to figures published by the Spanish Association of Leasing (AEL), Spain is on fourth position in the index of European countries rated by volume of investment in realty leasing, and fifth in realty finance leases.

Around 35 leasing companies with the highest revenue in Europe comprise 4 Spanish companies, one of which ranks among the top 15.

The group cheers Spanish companies to take advantage of their investment capacities in order to develop and perk up their facilities as the key to better output as well as competitiveness.

According to data released by the Bank of Spain, Spaniards invested just more than €1.1 billion in property outside Spain during the first half of this year (2008), which is 40.1% less than in the same period of 2007.

The above figure contrasts with the recent trend in the indicator.

Since 2003, realty investment outside Spain by administration and other residential segmenta, excluding the Bank of Spain, had been developing at a steady pace: from €388 million in 2003 to €781 million in 2004, €1.5 billion in 2005, nearly €2.3 billion in 2006 and €3.3 billion in 2007.