Spanish property “cools” after peak year
By Kevin Barnett, 28 Mar 2006
Spanish property developers predict house prices will cool down during 2006-2007, confirming the switch to a buyers’ market forecast for the current year.
The Association of Property Developers says prices for new homes should go down by between five and ten percent in 2006 as construction slows and the entry level of the Spanish holiday homes market is hit by the lower prices of emerging destinations like Bulgaria, Dubai and Cyprus.
International property experts have said there will be a slowdown in economic growth during this year and 2007 combined with rising interest rates while profits from property sales are likely to fall. Leading online specialists, PropertyInSpain.Net welcomed the lower prices adding “this makes Spanish property even more affordable and able to retain its leading market position in international real estate.”
Added spokesman, Terry Walker: “Allowing for the lower prices, the equity growth is still likely to be seven percent or higher in high demand holiday home areas - that’s a satisfactory investment return for most British and Benelux buyers as their domestic property markets produce inferior returns.”
Sales peaked in 2005
But Gonzalez Bernardos, of Barcelona University, believes there will be a price rise of five percent this year, and then prices will start to fall from 2007. Since 1998, property prices have risen 120 percent. Sales peaked in 2005 when figures indicate an average of 87 foreign buyers a day put their money into a Costa property.
Spanish developers claim their latest homes offer the best ever value for money as they include luxury finishes, increased security and high-tech smart homes technology. Many leading developers are already offering Libertad tax break and co-ownership buying options, launched by PropertyInSpain.Net earlier this month with lead prices of £32,000 for 2-bed bay-view luxury apartments in Costa Blanca north.
100s of buyers have already registered to buy Libertad homes and developers have offered 3,000 offplan apartments and villas to the scheme that provides a raft of tax breaks including low-to-no capital gains and inheritance tax.
The first Libertad property portfolio can be viewed at www.PropertyInSpain.Net and information packs are available on 0870 837 0034.