Positive sales figures for foreign house buyers in Spain
Housing Crisis in Spain is mentioned in many media, focusing on the fall in prices that are expected to come. However, statistics show what we at Mediter Real Estate has seen nor for some time.
What is the crisis for Sellers, is an unusually good opportunity for buyers. Tinsa, one of Spain’s largest independent residential appraisal companies have published market figures for Spain, with ratios up to April 2012. Prices peaked in the official statistics in December 2007. In total, prices in Spain has fallen by 29.8%.Various experts believe that prices must come down further down by approx.10% before the bottom is reached.
It is interesting to go into further detail for the housing market in Spain. The Mediterranean coast, where many homes are secondary to homeowners, and generally is very price-sensitive. This could be seen in statistics, house prices in Spain soared up to the year 2007. Due to this price sensitivity around the Mediterranean coast, we saw in the autumn of 2008, prices took a nosedive of 30%, while the official figure was “only” declined by 3-4%. In total, prices in the Mediterranean has declined by 37%. What makes this interesting is that in a market/country of Spain’s size, there are areas where trends starts and will quietly take the rest of the market in a given direction.
What we see on the Mediterranean coast is that sellers of resale properties has hit a pain threshold for price drops. Furthermore, the large construction companies has started to build new homes in great style – and sells them. We have at Mediter Real Estate not noted a definite decrease in the last 12 months. We see however that some homes even have increased slightly in price.
That there are good opportunities to buy at the moment, can be seen in the sales statistics for foreign property buyers in Spain. In total traded residences of foreigners in Spain in 2011 to 4.748 billion Euro. An increase of 27% compared to 2010. For comparison, in 2006 during ” the boom” acted housing for 4.716 billion euros. However, there is still a small step up to the 5.3 billion Euro, which was traded by foreigners in 2007 and 2008.
Sales figures released last week shows that the Costa Blanca, lead to sales to foreign buyers, with almost as many home sales as the Costa del Sol, Majorca, Costa Brava and the Canary islands combined. Sales figures, price trends on the Costa Blanca and turnover suggests that a real estate trading on the Costa Blanca is a very exciting and great opportunity.
