One of the most pressing problems for property buyers in Spain is raising finance, Chris Mercer stated. “The main issue is that bank funding will continue to be a problem in Spain. If a buyer wants more than 50% loan-to-value and the property is not bank-owned, it really is a no-go situation.”
Despite headline grabbing news of declining Spanish house prices, the real value of homes has actually gone up in many Spanish region, a study published by official source Ministry of Development revealed. Since 2001 home values have risen by 66% in some parts of the country; in fact, values in Murcia and Andalucía jumped up by 75% and 74.8% respectively, according to the survey. So should one see the past few years’ slump as a healthy readjustment of pricing levels?
The collapse of the Spanish construction industry and the huge number of unsold new homes will continue to haunt the market until at least 2019, many experts predict. This means, areas like Mallorca, Ibiza and Marbella at the Costa del Sol will continue to be in short supply of luxury, sought-after prime property and here house prices are likely to rise as a result.
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