COMPETITOR: “Don’t Panic” Call As Spanish Property Slows

Bank of Spain figures show a six percent reduction in property sales.This could be good news for the country that relies on tourism to produce 12 percent of its gross national product and provide jobs for around 11 percent of its workforce.
The drop in sales to €5.5 billion for the first 10 months of 2004 has alarmed Government and industry pundits concerned about the knock-on effect on the economy. The drop is due to increased competition from other countries seeking second home inward investment and house price increases in the most popular Spanish Costas.

But the sales drop is not necessarily bad news, according to online specialists PropertyInSpain.Net because the market has already started to correct itself as buyers are moving inland to search for homes that are on offer at the prices of 3-5 years ago. Spokesman Terry Walker explains that there is no need to panic. Brits are the most property savvy nation on the planet and they know what real values are in any market in which they are thinking of buying. A few hours research on the Internet is enough to show them there are bargains still to be had within 15 minutes of Blue Flag beaches and famous resorts.

“More of our buyers are going for inland properties in unspoilt villages surrounded by spectacular scenery and investors are snapping up rustic land on which to provide the next generation homes to cope with the new demand. As the prices can be 40% less than coastal spots, there should be no surprise when the overall sales figure is lower than in previous years. Spain remains the best place for a second home because it’s the most popular tourist destination, enjoys Europe’s strongest economy and still offers the best value for money”, Walker adds.

According to figures released by the construction association Seopan, house prices rose an average 141 percent in Spain in the period 1994-2004. Spanish property registrars estimated that sales have dropped between five and nine percent, while real estate firms that deal with foreigners put the fall even higher, at between 10 and 35 percent.

But property savvy Brits who have ridden roller coaster markets like London Docklands for 10 years in Europe’s fastest growing living and working area, think long term knowing that the only way for property is upwards. Property investors move in when prices stall and that’s what happening already in 2005. Dozens of investors are registering with PropertyInSpain.Net following a “Highly Recommended” full-page review of the website in the February subscription-only Hot Property Alert, whose 30,000 readers hold an estimated £7B of investment property. They have between £100,000 and £6M to invest in Spain - most of it destined for inland locations.

PropertyInSpain.Net works closely with the real estate interests of nearly 50 leading Spanish banks, one of whom CAM Bank, is investing over EUR 400M in Spanish real estate based on equity growth projections for this year and next of 12% and rental yield of 7%.

Posted on: Spain

News by country

COMPETITOR: “Don’t Panic” Call As Spanish Property Slows

Related articles

Recent Posts

News archive