Madrid and Barcelona markets have slowed down but remain stable with good prospects for 2008/9. The company’s confidence in these areas is underpinned by the fact that six more offices will open in these cities this year.
Report prepared by local estate agents
For the first time Malaga is included in the city section as the “capital” of the Costa del Sol. Important infrastructure developments and new investment indicate future potential. Future city openings for 2008 include Tarragona and Gerona.
The second home residential market has slowed down in many areas, particularly at the mid to lower end where there remains a surplus of property. Although, the market is still moving property in general is taking longer to sell and vendors have to be realistic about pricing in what has become a buyers market.
Generally the market is holding well particularly at the top end where luxury, front line property and remains at a premium. However, the lower to mid range priced property market (around €500,000) shows indicators of slowing down.
This is possibly the region with the greatest potential over the next couple of years. Easy accessibility, guaranteed winter sun destination, plenty of coastline property and unique countryside provide instant appeal to Europeans from colder climates. Four new offices planned for opening this year.
For quality property in good locations, the average spend has increased to €1 million.
There is a distinct move away from the traditional “Spanish” villa style to modern contemporary design.
For luxury properties, separate guest and staff accommodation, wine cellar and gymnasium have now become standard features.
Incoming foreign buyers are becoming younger. An increase in big spenders under 40’s, making a move to Spain with their young families is now a definite trend.
Where’s the market going ? Spain’s residential market still holds potential, particularly for well appointed luxury property. Its’ strategic position in Europe for easy access, excellent climate, sophisticated infrastructure, world class sports facilities will still be there when the market has adjusted to the current economic climate. Buyers must do their research to get the best value and vendors must be realistic about pricing.