Spanish property sales head towards record EUR 5B
By Kevin Barnett, 17 Feb 2012
Would-be investors in Spanish real estate are keen to benchmark overall investments at the mid-point of the first quarter of 2012 as that could confirm record highs for four consecutive quarters.
The magic figure they are looking for is around EUR 500M which would mean around EUR 5 billion of inward investment for Spain’s real estate sector over the last 12 months. This would be a clear signal to buy for most investors and build on the current sales of EUR 11M a day.
Last quarter figures from the Bank of Spain showed investment surging by nearly 28% over the same period in 2010 – exceeding EUR 1B for a run of three quarters, for the first time since the country’s property boom ended in 2008.
The increase in Spanish property sales seen in the last quarter of 2011 has spilled over into 2012 as international buyers secure the best Costa deals with Germany and Nordic countries outspending the Brits, who have been slow to spot the new opportunities.
Now, with Sterling stronger against the declining Euro, Brits are beginning to buy again, some of them with multiple purchases in areas with better than average equity growth potential like Costa Calida or Costa Blanca where holiday rents increased by 4.1% to produce enhanced yields for last year’s buyers.
Bank-owned property specialists, PropertyInSpain.Net confirmed more British buyers were happy with the potential 5.5% yields that come with heavily discounted prices and generous low interest mortgages – increasingly on prime location bargain properties.
Sales manager, Ben Walker said: “It’s been the best start to a new sales year since 2007 as serious buyers are now convinced they can buy quality property at prices discounted to 58% and qualify for mortgages up to 107% loan to price.”
Best buy 2012 so far...
Sales of Spain’s last ever on-the-beach holiday apartments have soared in line with construction progress, despite the market’s first property price increases for four years. Just 20 metres from the sea and 40 metres from a protected wildfowl nature park, Arenales del Mar Menor, La Manga prices start at EUR 132,000 with top price apartments enjoying sea views and mountain sunsets.
IMAGE: Prices drop starts Ibiza sales rush..
Spanish Property News from PropertyInSpain.net