Reply To: The real state of the CDS property market

#64092
katy
Blocked

When they say that property in spain in 30% overvalued they reach this figure by using several economic pointers but at the end of the day it is supply and demand that decides. If you look at the UK prices seem overvalued but there are more buyers than sellers so the market is healthy. In spain, particularly on the costas the massive building projects has led to a large oversupply and still new projects are starting. Less people are wanting to buy here. Just because the Banks etc give a figure doesn’t mean that sellers will come down to that figure.

A friend has had her villa (marbella) on the market for about a year. Valuation was 750000 euros. They asked 725000 and later reduced it to 675000, only had a few viewings this year. Its a fantastic house with large pool and beautiful views and they have said this is the lowest they will go as they would rather not sell, so unless its a distress sale there won’t be masses of bargains.

If you compare with houses in the UK what would you get there for this money in an upmarket area within walking distance to a lovely beach? Probably a house one third of the size, no pool, no large garden and one bathrooom (en-suite if you’re lucky) instead of 3.