Britons and Irish still hanker after property in Spain

Posted on January 21, 2009 by Spanish Property News
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Spanish property hasn't lost its appeal

The British and Irish still dream of buying property in Spain, finds a new survey by Marbella-based property company Andalucian Dream Homes (ADH).

Demand and transactions may be down steeply, thanks in part to the credit crunch, but the desire “to buy an investment property or holiday home in southern Spain is a strong as ever,” says ADH. The desire is being fuelled in part by the need to bolster diminishing pensions.

ADH conducted the survey to gauge British and Irish attitudes towards buying Spanish property, and Spain in general. ADH is one of the few big agents left standing on the Costa del Sol.

“Although actual sales on the Costa del Sol are down on previous years, the numbers registering an interest in Spanish property through our website show that desire and demand is returning,” explains Group Marketing Director Adam Godwin.

“We advertised throughout the Christmas period and saw a sharp uplift in both visitor numbers and new registrations, which clearly shows the desire to find out about Spanish property is as strong as ever. In this new-look market where interest is high and prices are low, there are other hidden factors at play so we surveyed our database to find out what they are.”

Top 5 survey findings

Despite the credit crunch 74% of respondents are still looking to buy Spanish property.
63% of respondents believe property to be the best option for supplementing dwindling pensions over the next 10 years.
Temporary loss of spending power from the pound to the euro is the main reason people are waiting to buy, with 55% saying this affected their decision.
Only 10% of respondents had any faith in investing in stocks and shares.
Whilst scare stories have had an influence on buyer behaviour, the exchange rate is the more important factor.

Other points of note in the survey were that buyers felt confused about how to recognise and choose the best locations and – in these times of big discounts and fluctuating exchange rates – how to accurately assess the real value of a Spanish property.

Healthy interest in Spanish property

ADH say the response rate was excellent, which they argue shows there is still “massive interest in Spanish property despite the economic and market changes over the past year.” They do, however accept that “it’s obvious those who are interested in purchasing have legitimate concerns about a range of issues.”

One of these issues is the exchange rate. “We have already begun taking action to help would-be buyers,” says Godwin. “For example, the pound to euro exchange rate is a major issue for many, so we’re in discussions with vendors to drop euro asking prices. Those looking to send funds to the UK can now afford to drop asking prices considerably, and we’re making that happen for our clients.”