I have reliable anecdotal evidence that transactions are picking up in some places, for example in Marbella, driven by price. Some agents and lawyers are definitely more upbeat.
It is also true that prices in some places are down by around 50% range from the peak. They might go lower, but it is now possible to find good value, though there is also still lots of over-priced rubbish on the market.
What happens now? I don’t expect the market to turn around, but I wouldn’t be surprised to see a further improvement in price and location driven transactions (prime and A-grade). Believe it or not, there are still people with money who want to buy in prime areas of the Costa del Sol if they can get a good price.
There is always “money” around and there will always be investors. There will always be the vultures picking bones after the road kill. But the middle of the road,” want to retire/work in Spain, have a holiday home in Spain,” people has surely ebbed away for the many reasons already written about on here. Many(average) people raised capital by either using equity from their main residence, or remortgaging to buy property in Spain. Almost impossible now due to market forces. There are apparently few, if any jobs in Spain for ex-pats and finally, no Eurozone country is viable just now with the poor exchange rates, certainly for UK buyers who, I think agents will agree, made up the market numbers.
Estate agents may be seeing some movement again, but from what can be heard/seen in the media/news, they are not going to become rich from these new sales sometime soon, more like keeping the wolf from the door.
Personally, we think renting is the way to go for the forseeable future, if you wanted to live in Spain. UK property is a better investment.
The boom was led mainly by average British buyers who purchased something around 200,000 euro. The latter part was only inland cheapies that were selling, now not very much at all.
I am not “on the ground” anymore to see what is happening but I do know it was dire when I left early Feb. I do still have contact with friends in Marbella and other areas (a couple of them in the “business”) and I don’t hear the same as Mark. The only sales I have heard of recently the purchasers have been foreigners. I really don’t think Marbella attracts the British rich anymore, many have left because of other issues (quality and service eg.). I was reminded of this when reading about Connery, he left because of the increasing development mess being made of the place. I know some other rich who have left (although not as famous!). I just do not think Spain attracts the upper or middle class anymore.
These stories about the market “picking-up” have been coming out every year starting in semana santa and dying off by July. I see it as no more than the agents trying a relaunch after the winter, I actually know people who do this, they sit in cafes and bars telling everyone who can hear how many properties they have sold, privately they are living from hand to mouth!
There still aren’t many bargains around either. A quick glance at properties for sale in areas I know well demonstrates this. It is the Emperors new clothes again as they agents say there are…we just are not in the know like they are 😆
I agree with Mark’s statement that there is anecdotal evidence of more activity. A couple of weeks ago I was on a viewing trip to Mijas when I overheard a couple of agents discussing how busy they were. One claimed to have made five sales in the one week. He didn’t seem to be bullshitting.
Still a lot of over priced dross on the market. In amongst it all I did however see a couple of properties that represented what I consider to be reasonable value. I’m still holding off buying though as I’m pretty convinced that the market still has quite a bit to fall.
A couple of weeks ago I was on a viewing trip to Mijas when I overheard a couple of agents discussing how busy they were. One claimed to have made five sales in the one week. He didn’t seem to be bullshitting.
Sounds like an attempt to impress you as a prospective buyer…they all help each other out. Many small estate agents were not selling that amount per week during the boom. They also bullshit each other too. I have based my view of this from knowing personally some of the agents who as I said, scratching a living, some attempting to borrow from friends, not paying their rent etc. If they are selling so many what are they doing with their commissions 😐
I do hope things are improving in Spain, if only for some of the very nice people I know who have been trying to sell for 3 years and are starting to feel trapped. As Chris said some are not even putting their property on the market as they don’t see the point of the hassle.
Right up my alley, but what on earth is it doing down here lost at the bottom of the list of forum areas, and within the Andalucia link?
I only know about it because of it being mentioned elsewhere upstairs, apart from a quick glance a year or four ago, I didn’t really know people posted anywhere except up at the top.
But for what it is worth, every post here so far has it about right, can’t argue with any of it really.
Our guys did do 5 sales in the first week of April, thought it was going to be 20+ month, but then only I think 6 more the rest of the month, what with Greece going into meltdown, then the no fly 7 days, then the blooming UK election drama, and they on 4 sales for this month.
But they confidently see 20 sales a month coming, and hopefully back to the heights of a sale a day not long after, but then this is volume marketing, huge activity and loads of people involved, not quite your standard agent. And believe it or not, that will only just about create a reasonable living instead of losses.
But they love it, and those guys will fight to the very end to stay in place, and as they have been through so much, I think they might just make it.
However, no return to boom no, lots of people want to rent yes, few people selling correct in real terms, and yet many people really see a future also, really it is much like the mid 1990’s which was a sweet time to be on the Costa actually, so long may that last.
And lets hope Katy’s friends who have been looking to sell for so long now find buyers.
Mmm, real tasty thread, might pop down this way again!
Katy, you really must have had a bad experience in Marbella!!… a lot of anger and bitterness under the covers of your posts!!! …. if you were still here and in touch with the movers and shakers you would be aware that the real estate market is moving along quite well, especially at the top; ie over €2,000,000……… check out Sierra Blanca and La Zagaleta for a start. Yes, the prices of properties sold are 40 – 50% below the 2004 highs but so what. The brave need a reward for buying now!!……. also, bank repos are becoming available; banco popular sold 90 units in Dama de Noche in a three week period (that’s two km from Puerto Banus)……. Once the world economy settles down a bit the buyers will be back in force taking advantage of much lower prices, massively improved infrastructure and the lessons learnt from the recent boom.
The CDS is still suffering and many more business’s will go bankrupt but I don’t doubt that there will be a rebound and probably sooner than we think!!!!!! (in the good locations – doesn’t mean only millionaire rows – just good A1 locations on nice streets with good access and local facilities!!!!!!)
Sorry but La Dama de la Noche resembles a large council estate. I actually know someone who has locked and left a property in La Zagaleta. Someone only posted today on another forum that a lot of properties there are suffering from landslips. Sierra Blanca…was OK until they started with the apartments. A German friend of ours reduced his property there by 400,000 and thought himself lucky to get out!
Movers and shakers…don’t make me laugh. Do you mean the Estate agents! We only left early February and still have friends there and I am not hearing of a revival. I am not at all bitter, very happy to get out with a profit. Maybe disappointed that they managed to ruin a nice place. We are not in the 2 million league, frankly if we were, we know of better places to spend it 😀
Possibly it will pick up, Marbella is still superior to most other places on the CDS. I have never said it wouldn’t. As for us.(I never say never) I don’t think we shall be back. I do however feel confident that next year we could get an equivalent villa for less than we sold.
I wondered how long it would take this thread to have a post from someone who simply states their findings and then an agent to come along, throw a hissy fit and scream “you don’t know what you’re talking about, you’re just bitter”.
Get a grip UBEDA – a little more respect for other people’s (experienced) opinions and less denial will help debate.
My experience a few years ago, sitting in a Marbella cafe, listening to 3 agent guys. They were laughing their socks off how they lied about having bought into a certain development themselves in order to persuade/encourage/seal the deal with “a couple of elderly suckers”. I won’t say what I think about the integrity of ‘some’ agents or you’ll just accuse me of being bitter. 🙂
Charlie, am not an estate agent I promise; but there are people buying in the area and big ticket houses are selling quite well; OVER €2,000,000……. which is a great sign for all of us who thought the end of the world had come. Something not widely known and appreciated is that a large percentage of buyers/lookers are Russian, Central European, Baltic states; yes, even North African…… and no they are not murderers, drug dealers etc; just entrepreneurs who’ve made a few bob and want fun in the sun.
As regards your dodgy agents; well, I guess they were Brits (speaking English, no?) – the Northern Europeans have been conning their countrymen in Spain since the sixties boom in the Canaries……. don’t forget been dodgy comes with the patch – any sales job – stockbroker, insurance, art dealers etc has a high percentage of losers and a small percentage of smooth taking closers … ha ha …..
and Katy, a council estate it’s not; 50,000m2 of landscaped gardens, 1,000 palm trees, pools galore, tennis, paddle tennis … must say though that 50% of complexes on the coast do look like council flats, but then, don’t forget that most of us entrepreneurs grew up on council estates so it’s home from home for the newly rich !!!!!!!!!
Although it has not been reported yet in the press (as far as i know) sales in the 2 trimestre should show an increase of approximately 6.4% compared to last year.
comparing the first 8 months of last year to 2010 though sales are still down just under 4%.
EDIT: figure for province of Malaga
Although we have seen a definite improvement in sales this year, it is still to be reflected on yearly figures. Although if the trend of the last few months continues, this year could show an improvement over 2009.
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