Words: Ashley Rigg
Published: 18th April 2011
*Sales and optimism rise in Spain
The Spanish property market has made a promising start to 2011 according to new figures from the National Statistics Office (INE).
The latest figures show the market has now expanded 27% since the low of February 2009 and sales, excluding social housing, are up an average of 9.9% in the year to February.
Although transaction volumes are down 42% from February 2007, there seems to be a growing sense of optimism in the market.
In the latest
Global edge survey, 57% of Spanish-based readers reported that sales were better than this time last year, with 29% saying sales were about the same and only 14% reporting sales were worse.
José Prado, President of Malaga’s Association of Constructors and Developers takes the optimism one stage further with a prediction of a return to stellar house price growth in a recent interview in the Spanish press.
“There are very few new homes coming onto the market, which will bring down the total number for sale and drive up prices 20pc to 30pc in 2 years,” he said.
The English language media also seems to have postponed its Spanish property bashing with a number of positive articles appearing in the last few weeks in the
Telegraph and
Citywire
In some coastal areas, overseas buyers seem to be returning to the market. Sales to foreign buyers in Malaga are up 39%, according to the
Ministry of Development.
A word of caution
Although on the face of it, the Spanish market seems to be improving, it is from a very low base and a lack of pricing transparency is still hampering recovery.
Ken Spencer from Property Options Spain, who sells in Marbella sums it up well:
“The market is still hamstrung by unrealistic expectations. People want bargains but the bargains are not often in the locations where people want to buy”.
Good news perhaps, but still a long way to go.
Source: Global edge
User Comments
The are definitely some positive signs emerging for the Spanish market, particulary within the luxury sector.
The issue is that many clients who have the cash want very specific properties in exact locations. Add to the mix the requirment for a distressed seller and you have a really difficult time marrying both vendor and buyer.
Mark Goodwin,
First Property Choice
In the Canary Islands we have seen a big upswing in the level of enquiries since the turn of the year particulaly in our Fuerteventura business, the comment made by Ken Spencer is a valid one in terms of prospective clients wanting the bargins in the sort after areas, we are finding that alot of the private distressed sales are starting to disappear although there are still some great opportuniites to be had.
Slowly the market is moving in a posititve direction and our expectations for 2011 continue to be optimistic
John Goldacre,
GoldAcre estates S.L