On the western side of Costa de La Luz
1. The extranjero market for “Touristic Homes” is so significantly down “huge drops” seems an apt description. Whilst sales have dropped prices have not as the developers, for the obvious commercial reasons, keep increasing the new build prices despite the lack of sales.
2. The Spanish market for “Touristic Homes” is down but not so significantly. The significant drop off occurred during the last two years. Today resale prices are down and whilst not yet a tidal wave “fire sales” are now easy enough to find on Spanish language property and classified ad web sites or by word of mouth.
3. The market for cheap residential homes based in the towns around the tourist areas seems to be stable despite the thousands of new homes that have come on to this market in the last couple of years. Thousands more are being built. I suspect in the short to medium term this may mean supply will soon significantly outstrip demand.
I was in Almeria again on Friday. Down by the coast there are cranes as far as the eye can see, bristling on every horizon. It’s a construction boom of epic proportions, which is unfortunate given that the market appears to have gone very quite. The anecdotal picture I’m getting is that sales in the first quarter of this year are less than half of the level of last year. That’s a huge drop, though I have to say I also know of projects that are selling briskly, on the strength of outstanding quality. Anyone out there with more information on the level of sales this year?