Small investors now big players in Spanish property market.

[DBMarcos99]

Interesting article by Mark, where he claims that lower prices are tempting smaller investors to dip into the market

Perhaps the most interesting point to come out of this report is the rapid growth of investors in the market. The percentage of investors increased by 7.5pc in Q2 alone, to 24pc of buyers, 74pc of whom were cash-buyers. In Barcelona, investors are now 32pc of the market.

Investors are attracted by prices that are starting to look like bargains. More than half of sales in Spain’s principal cities, with the exception of Barcelona, were under €100,000. In Barcelona, half of sales were under €150,000. In the boom, the figure for Barcelona would likely have been more than €300,000.

https://www.spanishpropertyinsight.com/2013/10/08/investors-now-big-players-spanish-property-market/

An interesting comment on there also – the biggest gains are currently being made on the stock exchange. The Ibex was down to 5,995 points last summer, it’s now around the 9,600 mark. But is that sustainable?

[angie]

You’re up and running again Marcos, have you settled in ok in Madrid? Have you started your business now? 🙄

Madrid, where your heart was, couldn’t see you in Valencia somehow 😛

[katy]

The IBEX was 15,000 once

Mark also said recently that prices have reached the bottom but this weekend one Spanish article said that properties will continue to fall next year too. If you look back at this forum, prices reached the bottom for the last 3 or 4 years 😆

[katy]

Number of house sales fall for the 4th consecutive month. Sales in August were down 15% compared with last August.

http://economia.elpais.com/economia/2013/10/14/vivienda/1381737405_604272.html

[Fuengi (Andrew)]

thanks for the link katy.

I liked this bit:
Andalucía continuó a la cabeza de compraventas de viviendas en agosto, con 5.057 operaciones. And considering a large % of that would be in Malaga, its good for the Costa del Sol.

Considering some of the laws that past last year, the increase in IVA no new builds, removal of mortgage relief, etc… The drops during the second half of 2013 is less than I would have thought.

[angie]

Despite the cooler climes in Navarra and La Rioja, their sales were higher, damn good wine regions must account for that 😆

The overall graph though is 😯 and echoes Kyero September figures 🙄

[DBMarcos99]

@katy wrote:

The IBEX was 15,000 once

Are you still living in the 1990s? 😆 Perhaps we can share the time machine and buy the real property bargains from back then?

The Ibex has risen from a low of around 5,995 points last year, to reach over 9,800 today.
The point is that investors would have gained far more in the stock market (not just in Spain either) than in property over the last year or two.
Will that continue though? I have to admit I’m nervous and would not give advice on this. The problem with stocks (as I see it) is that an external occurence (US defaults? war in the ME? something we don’t yet know..) could cause a major correction. My guess is that profit takers will ensure the stocks will come back down, but we’ll see.
And yes, do we know when the property market reaches the bottom, or will it become something we are aware of 6 months later?

[katy]

You are sooo tiresome. The Ibex hit the 15000 mark in 2007 before the crash. Would you not agree that the USA and the UK have caught up. Spain is only about 60% there. Some will have gained on the Spanish stocks this year, most won’t, they will still be holding and waiting for the rebound to recoup where they were 6 years ago.

[DBMarcos99]

@katy wrote:

You are sooo tiresome. The Ibex hit the 15000 mark in 2007 before the crash. Would you not agree that the USA and the UK have caught up. Spain is only about 60% there. Some will have gained on the Spanish stocks this year, most won’t, they will still be holding and waiting for the rebound to recoup where they were 6 years ago.

You can keep harping back to a position nearly 7 years ago if you like – did you sell at that point? If so well done!
As for “some will have gained” I would have thought the vast majority who’ve invested in the last 2 years would have gained A LOT if the Ibex has gone from 5995 summer 2012 to 9800 now.
I’m not in that happy boat, but if I were, the temptation to profit take (and perhaps buy a cheap property) would be too much for me I admit. Surely there will be a small correction? (only guessing here)

[katy]

I have never gambled on the IBEX. Yes some will have made a profit, some even make a profit on a falling market. I did quite well during the crisis years when bank shares were on a roller coaster. Down 4% on a rumour and they always went up the week after 😀

Just pointing out the big picture that the IBEX has a long way to catch up to pre crisis levels.

[The Australian]

@DBMarcos99 wrote:

An interesting comment on there also – the biggest gains are currently being made on the stock exchange. The Ibex was down to 5,995 points last summer, it’s now around the 9,600 mark. But is that sustainable?

I made 35% on Bankia last month. I told him in one of my previous posts here that at 60 / 70 cents was a bargain but he didn’t think so.

Too bad. Waiting for a price correction now.

[Author]

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