Break point for Spanish Property sales?
By Kevin Barnett, 10 Feb 2012
It could the break point year for Spanish property because inquiries and sales increased strongly in January boosted by wait-and-see, mañana buyers who decided now could be time to buy after five years of price drops.
Prospective investors have noted Spain’s latest austerity measures include putting pressure on Spanish banks to rebalance their books and get rid of under-performing property assets, and have taken that as sign of more likely bargains.
They could be right, only if the banks stop offering sub-prime repossessions and start to release more of the premium, key ready new-builds stacked up along prime Costas. These have more appeal to international buyers who want to let them out in Spain’s still growing self-catering tourism sector. They have 10-year construction guarantees and built-in goodies like air-con, appliances, on-site swimming pools to share and surrounded by all the tourism amenities that come with Spanish holidays.
Commentator, Daniel Talavera of TheSpanishbrick.com believes the economic situation in Spain will fuel demand for rented accommodation. He said: “The economic impact on the property sector will help to improve the rental market.
“Property sales are still going down in the current crisis. 2011 was the year of the most dramatic figures in terms of prices drop and property transactions. Hopefully, 2012 will be a breaking point and the trend will be an increase of transactions due to lower prices.”
He added: “2012 is going to be a good year for property buyers. Bargains in terms of low prices, location and specifications will come out to the market for once. Spanish banks are under pressure and the sub-prime property is very difficult to sell to individual buyers. We will see good opportunities in 2012.”
Bank-owned property specialists PropertyInSpain.Net report the best start to a new sales season for five years with some network affiliates reporting multiple-sales to investors, and one office achieving double digit sales in a month. “We have also seen the first price increases in off-plan property prices in six years as one bank-owned developer clocked good sales after new construction progress images got buyers excited enough to fly and buy.
“That’s another useful break point along the road to recovery for the Spanish property market.”
Spain's last on-the-beach bargains
IMAGE: High end villas at bargain prices in Costa Blanca
Spanish Property News from PropertyInSpain.net