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Should anyone be buying in Spain at the moment?
I know the current state of the market but I think I’ve found a bargain.
On a quality, well known development on the CDS, I’ve negotiated a resale property down from 500,000 euro to 400.000 euro.
Now I have do decide whether to take the plunge or wait 6-12 months for some real bargains in the market shake out.
Any views or advice please.
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Have a look at (from yesterday’s SUR in English)
http://www.surinenglish.com/noticias.php?Noticia=10910
The market is not falling in terms of actual sale price in selected areas.
The thing to remember is that Fuengirola has no land to build upon that does not already have a building licence, the only way to get a building licence now is on a “demolish to rebuild” basis. This is keeping the prices strong in those areas and that will remain so.
Benalmadena and Torremelinos are similar in that just about all quality land on the costal side of the motorway is, like Fuengirola, either already built upon or licenced for build.
The other thing at the moment is that people are steering clear of a lot of new build – Benalmadena will be the next Marbella once they finish with Alhaurin. Quite simply if you are looking to buy anywhere on the CDS I would steer clear of anything under 8 to 10 years old and do not touch new build at any cost. Marbella is just the tip of the iceburg.
There is certainly adjustments in market prices in the better areas but not in the actual selling prices – just people are building in higher starting prices so that they can be seen to reduce substantially and also others are becoming more realistic with values. Most new builds on the CDS have been over priced by 25-40% for the past five years or so and people are now falling in! Remember most prices were inflated by 12% just to pay Estate Agents their undeserved commission!
Interesting as well is that my own house is for sale (and I lost a buyer last week because the Bank fell in to just how far a mortgage broker was twisting his salary). At teh beginning of June, a bank valuation was given by a National firm of surveyors at 10% above sale price. This week, there has been another valuation by another of the national firms and that reflects an increase of another 12% which is line with the revised figures that have been issued this week.
I think the market is quite and is steady. There is no crash, just a re-alignment and correction of prices especially on new and newish build outside of the established and sought after costal areas.
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