The global real estate services provider Savills believes that there are signs of improvement in Spain for 2013 particularly at the prime end of the market.
Savills sees the Spanish market bottoming out in 2013 as prices fall to converge with investors’ expectations. There is evidence of this happening as prices have fallen at their fastest quarterly rate since 2007 during the first quarter of 2013 (6.6%).
There is comparison made between Spain’s situation and that of Ireland as well as their bad banks, Ireland’s NAMA and Spain’s Sareb.
The effect of NAMA on the Irish market is generally regarded as having been very positive and the same is expected of Sareb which “has injected liquidity in the market and has improved transparency raising hopes that the turning point for Spain may also be close.”
Savills, like others in the industry, now senses a change in investor sentiment and believes that demand will increase from international investors, particularly those from South America, as well as opportunistic investors.
However, difficulty in obtaining financing may restrict market activity this year and it could be that 2014 will be a more positive year for the Spanish property market as there is expected to be a return to economic growth in the country (0.2% according to Savills’ economists).