Spanish Property Market for 2010
08 Apr 2010
With the news that international investment is Spanish property is down some 31% what is the future for those wanting to buy Spanish property, Well first things first you have to appreciate certain problems that make the property market in Spain quite unique, and in reality you have two markets in one, the international buyers and local buyers. Then you have the huge differences in areas where in certain areas like Pais Vasco & Costa Brava property actually went up in price in 2009.
If we take a look at the 3 major international areas i.e. Andalucia, Baleares & Comunidad Valenciana it was very much a case of International property buyers taking advantage of the huge discounts available and even though there was a fall of 32% considering all the other factors things could have been a lot worse. The reality is that more International people are selling up and returning to there home country than are buying in Spain to come and live or buying a second holiday home and this trend is likely to continue for some time yet, probably another two years at least. However in most places we have hit the bottom of the market for international buyers even though it may be some time before we see prices increasing on the Costa. The other factor to take into consideration now is that even thought there are still distressed sales out there the choice isn’t nearly as good as it was in 2009 and in the key location areas such as Javea, Marbella and Mallorca the best deals were very much bought in 2009.
The local market is suffering because of two factors both connected with the recession the first being people not being able to get finance to buy with in most cases buyers needing 40% to 50% Cash and the second being job security. Hopefully this will change positively in the second half of the year allowing some of the local community to buy into property that has been the domain of International property buyers in 2009.
What people tend to forget in all of this is why people are still buying here in a recession and what attracts people to Spain. Its lifestyle, people, climate and location with Andalucia very much the California of Europe are still big points for would be International buyers and with taxes on the rise in the UK more and more people who can afford to move are seriously considering leaving with Spain still very much the only real choice in Europe at least.
So the future for those wanting to buy property in Spain is still very positive indeed but there is going to be a loss less volume sales than there has been and maybe the average sale will increase in value but there will be less of them.
2010 is very much the last year of opportunity for those wanting to buy something special in Spain. There will always be the odd great deal but choice at great prices will be a thing of the past in 2011.
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