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Just read this interesting report here: http://www.fly-2let.co.uk/news106.htm
Spanish property price warning
A combination of reduced demand, continuing high levels of building, and the aftermath of natural hazards could see property prices in Spain and Portugal fall by 10 per cent next year, Guildford based Tribune Properties has concluded.
The rate of new builds on the Costa del Sol and Costa Blanca hasn’t slowed any great degree, ‘and before long there could be a price correction as there is going to be quite an oversupply in the market’, said the firm.
Europe’s worst drought in living memory has had an affect on the markets in Spain and Portugal, leaving many would be buyers wondering if they would be able to use their pool in years to come. Meanwhile property investment opportunities in eastern European countries have diverted interest in that direction.
‘Second home buyers are seeing properties offered in Bulgaria at less than half the price they thought they would need to own a home overseas, and the traditional markets of Spain and Portugal are losing out’, said Roger Munns of Tribune Properties.
Spanish and Portuguese property buyers will be in their strongest negotiating position since the mid to late 1980s when prices dropped by nearly a third on the Spanish Costas’, said the firm.
’Already we have seen villas in Menorca drop in value by around 10 per cent, and they could, and probably will, go lower still’.
Tribune’s predictions are at odds with recent findings of a Barclays survey and official Spanish estimates.
Barclays found that almost a third of those 2.2m people planning to buy an overseas property would be looking first in Spain, while Portugal was the first choice of 5 per cent – the same as the combined percentage of those nominating Bulgaria and Croatia as their first choice.
Meanwhile Spain’s tourist office has said its internal estimates suggest relaxation of the UK’s pension rules allowing self invested pension plans (SIPPs) to hold overseas residential properties will stimulate the Spanish market, resulting in sales of approximately 150,000 homes.
Food for thought
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Eh? Hardly any of it’s true. “Europe’s worst draught in living memory” is having zero effect on the Costa del Sol market at least. Bulgaria is most unlikely to be a better investment than Spain – unless maybe you’re buying urban apartments in Sofia, renovating and renting. Prices dropped by a third on the costas in the late 80s? I wasn’t here then, but I find that doubtful. “Aftermath of natural hazards”? What? Is he on about the draught again?
The prices here are falling, but only around the golf courses in the middle of nowhere. If you’re beachside within a genuine 45 minutes of the airport or town centre then the prices are still rising – albeit only more or less with inflation these days.
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All these facts and figures being thrown about are rubbish. As of today, the government announced the new pension rules will NOT include buying property as everyone anticipated. Well thats that then. No new bubble on the Costa del Sol.
As a retired journalist living on the Coast, I have dealt with the “scum of the earth” in agents. The huge amount of pages in the Sur in English must have a big ad inbetween all those pages of houses.
WANTED! Sales Executives.
Must be:
Ex time share
Full of crap
Greedy as hell
Ready to leave quick
Have savings as in 3 months you will need them
Be willing to kidnap clients from the airport
Be willing to spend their spare time in bars in Elviria blagging about all the sales you have had when in actual fact….Where the hell do the coast get these people? Sadly, the only agent I ever knew on the coast that paid their staff a salary so they were unbiased and could give the clients a good honest opinion, was pushed into a corner, despite all efforts to change the attitude people have towards buying in Spain. Its a crying shame to see good honest agents FINALLY, only to see them pushed sideways by all the big boys until the company couldn,t survive. Who actually governs or supports the agents on the coast? Where is the unbiased authoritarian body who polices the agents and makes the rules? The UK has it so why not in Spain? I am not talking about some self appointed “club” that you feel you should join just because everyone else does. Do they help those in difficulties? Do they have a set of rules that help the agent, not just themselves? Even if you join the AA for £40 you get a man in a van turn up.
Its going to take a few good men to turn that coast around and get the trust back that has so sadly been lacking in recent years. Getting an agent you can trust is vital and thats an underestimate. If you can find one then the Costa del Sol is still a fantastic place to live. Nowhere in Europe can you be in the sunshine from anywhere in just a couple of hours with the infrastructure and airports in place as the CDS has. The biggest decision is where to buy and like all over the planet, the same applies. Location, Location, Location.
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