Anyone else feel that the Spanish Market is Improving?

Discussion in 'Spanish property' started by 4sbo-spain, May 14, 2009.

  1. 4sbo-spain

    4sbo-spain New Member

    Our Statistics: Enquiry levels up 4 fold in last 2 months, Clients booking last minute flights to view sensibly priced property, Sales increasing.
    Is it me or is the market starting to turn and improve slightly?

    If you are sitting waiting to sell, now could be the time to get Advertising! In Almeria the overpriced agents that were charging in excess of 10% commission have all gone (Medsea, Parador, Ambasun, ***) leaving a cleaner, level playing field.
    However by advertising direct, as featured on recent BBC show Axe The Agent, and taking control, you the Vendor can further save thousands of Euros

    Regds Neil
     
    Last edited by a moderator: Mar 22, 2014
  2. Damian George

    Damian George New Member

    Hi Neil

    Sorry i dont the Spanish Property Market is for the bargin hunters at the moment and desperate sellers - manly the only ones moving are many retirees need to sell due the changes in exchange rates as their pensions are not going as far as they once did and need to return home. interesting though we are seeing a lot of british sellers selling to spanish buyers.

    Also out of interest you recommend global currency exchange what do they pay out of commission and would you be interested in trying us

    Spain reported that GDP contracted in Q1 by 1.8% (after –1% in Q4), or 2.9% y/y. It’s the
    biggest drop in 40 years. At the same time, unemployment rose to 17.4$ in Q1, also the worst since 1970.
    Bloomberg says the EC expects Spain to continue contracting even if other eurozone economies start to recover. For the year, the contraction could be 5% and unemployment could reach 20.5% next year. “Bad loans have more than tripled, according to the central bank, and the collapse of the debt-fueled building boom and the squeeze on credit pushed 475 construction and real estate companies into bankruptcy proceedings in the first quarter.”
    Spain continues to get declining prices (in contrast to the overall eurozone, where they are positive). The Spanish stimulus is 2.3% of GDP this year, more than any other country in Europe. Bloomberg says “The budget deficit will grow to 9.8% of output next year, more than three times the EU limit, according to the commission… As Spain’s deficit swells, the extra interest that investors demand to hold its bonds instead of German equivalents rose to the mostsince the euro was created… 65 basis points today, is more than double what it was a year ago.”
     
  3. rsredline

    rsredline New Member

    Im currently in the market for an apartment in Lanzarote. Prices have fallen quite a bit since last year but Im still not sure if I should wait a while or not.
    I read the article here about Lanzarote, good read.

    From what you are saying should I stay put?

    Any Lanzarote property owners on here that could give some advice?

    Thanks;)
     
  4. greg

    greg New Member

    Sorry it must be you... There is definitely no upturn...
     
  5. Damian George

    Damian George New Member

    i have to agree - only sales going through are distressed sales - the same in the states
     
  6. rowlandsbb

    rowlandsbb New Member

    View on Spanish Market

    The Spanish property market is very similar to our own just now.....lots of over supply for certain types of properties such as apartments , low level of transactions and for some , those properties which are at a bargain price are often not the ones you want to buy!

    Owners who do not have to sell are sitting tight so a lot of really good properties are just not for sale at the current price levels- developers who do not have to sell are just cutting back until times improve

    There are some good deals from developers with circa 25% reductions in asking [!] prices compared with original and if you are wanting a nice holiday home with facilities now may perhaps be the time to start looking...Polaris World have some good offers and re sales asking prices from circa 87.500€

    The best deals are probaly the distressed sales....a recent example was a 2 bed duplex in Palomares bought for 185.000 € several years ago, the price to sell was 130.000€ to clear mortgage..others similar...but you have to look hard to find the good ones

    The prices stated for owner direct sales tend to be set too high and not reflect the market...most agents today will only take on a property if the price is realistic but some owners are still living in the past!

    When will it improve?

    I think the Uk market looks like improving late 2009 but we have a general election to get out of the way before confidence improves so that means mid to late 2010 before we see a return to a more active market...even though it has not been as cheap to buy for a long time and interest rates should be low for some time

    UK buyers are an important part of the second home market in Spain so that means UK buyers will be slack until late 2010 but an exchange rate improvement may quicken this ,as there is certainly a pent up demand for buying in Spain ,just waiting for this to happen....talk of 1.25 by this summer just now

    Spain will continue to be very attractive for northern europeans for well known reasons but with it's large over supply I suspect prices will remain level for a couple of years....say Q1 2011 to get back to a more normal market ,and those developments which are currently being mothballed re started

    I think the above is a pretty standard view of the situation...if you want to and can afford to buy now then you should be OK medium term.......may not be buying at the bottom but at least close......and if in the right location via the right people then it should turn out a good investment......although to life style buyers investment returns are not always as important as the enjoyment they will get out of their purchase !

    Planning and legal sitaution is now well regulated but as always you need good independant advice.....adopt the same attitude as you would buying in UK

    So if you want to buy...no reason not go to Spain and have a look!
     
  7. DC

    DC Member

    I think is improving, there seems to be winners and losers.

    The good ones are winning and the ones that need to improve are losing. It is natural selection.
     
  8. Damian George

    Damian George New Member

    the general improvement of the euro exchange rate seams to be helping brits - have seen a increased willingness to complete transactions recently

    pounds to euros currently 1.1700
     
  9. Ibermaxx

    Ibermaxx New Member

    Costa Blanca

    I'm seeing properties here in some places on Costa Blanca still overpriced. For example Punta Prima complex near Torrevieja-the prices there are still high. You have to be very lucky to find some bergain there.
     
  10. rowlandsbb

    rowlandsbb New Member

    The market is static overall with low volume of transactions and from a UK buyer perspective the uncertainty of our economic and political situation needs to be resolved

    And that means a general election because until we know who will rule us for the next 5 years, people will put off decisions
    Even Life Style buyers

    So whilst there are lost of really good buys just now,UK buyers are holding back

    An improvement in the exchange rate later this year may prompt buyers to get serious again

    So it does look as though UK buyers will not start to be interested in any numbers until mid 2010
    Forget about any boom or even a mini one until say post 2016 but 2011 should be the start of a balanced market and gradual improvement

    Bur again keen life style buyers are still around looking for the dream home at a good price
     
  11. Ibermaxx

    Ibermaxx New Member

    From to Spain to Brasil

    I noticed, the proffesional investors are moving Brasil now....
    well, but this is another subject on this forum...
     
  12. rowlandsbb

    rowlandsbb New Member

    The property market worls wide is at best static and at worst in decline and far away places are for the professional investors or gamblers who have lots of cash

    Very difficult to get to know a property market in South America and you can not rely on the marketing!!

    Spain will always be popular with northern europeans seeking the sun for life style reasons
    and when the economies of EU start to recover we will then see an increased interest in buyers for Spain
    Applies of course to France and to a lesser degree Portugal

    The good deals will encourage the market to get going again

    Dubai sums up the so called emerging markets for investors...now a disaster and worse than all the problems which struck Spain during the boom

    It is one thing owning a villa or apartment in CDS or Almeria etc which was built with illegal permits [ soon to be made legal for many] compared with Dubai and owning a 20th floor apartment in a block which is still a hole in the ground or even worse part built !!!

    Why Spain.....EU and established economy and legal system [ albeit slow] , easy to get there and for many the Costas are well known from frequent holidays....safe to buy now more than ever
     
  13. Ibermaxx

    Ibermaxx New Member

    !

    100% agree.....
     
  14. Damian George

    Damian George New Member

  15. rowlandsbb

    rowlandsbb New Member

    July and August has always been a quiet time for internet or Uk based agents but no doubt with the prospect of an improvement in the exchange rate , the local guys will have people looking whilst on holiday

    A recenty report puts the recovery circa 2012 in Spain but I think in the meantime it willtick over and life style buyers from UK will start to get serious again at exchange rate circa 1.20
    Till then it is a balance of the discount you are getting and the excxhange rate to judge if you are getting your life style home at a good price

    Everyone who wants to or has to sell is now taking a realistic attitude to price...in the main the silly asking prices have gone

    When you find a home you want...just make an offer at what you can afford.....sometimes it works and you get a buy at a sensible price at a very big discount on the original asking price

    not unusual to find a villa on offer 2 years ago at 2.2m € [probalbly a silly price even then !] reduced to 1.6m € and then the seller accepting in desperation an offer for 900.000 €!.....a real example which does happen!.....but you have to look for them

    Or at La Manga...bank sale of a villa at todays worth of 1.1m € sold at 650.000 € and right the way down the budget levels there are similar examples
     
  16. Damian George

    Damian George New Member

    Hi Brian,

    i have a lot of clients waiting to exchange pounds to euros at 1.2000 but this exchange rate is being difficult to achieve. Some peopleforget that they could be saving 30%+ on the spanish property purchase but dont go ahead cause they think the 1% they lose when buying euros in the fx market
     
  17. rowlandsbb

    rowlandsbb New Member

    Agree
    And I think 1.20 may well be an important milestone and once it is reached we may see an increase in positive interest from UK from life style buyers

    Looks like being later this year before it hits 1.20 and then I suppose after a election in Uk , it may go even higher!
     
  18. shubh

    shubh New Member

    Prices are still are falling. Tough there is some recovery in real estate market, but even then there are very few actual buyers, who are listing their requirements. Yes, some investors are trying to withdraw their investments.
     
  19. rowlandsbb

    rowlandsbb New Member

    But there are ' vultures' about looking to pick up the forced sales
    I have a client who is a ' vulture purchaser' but just for one 2 bed maisonette or apartment between Aguilas and Mojacar but would look at Polaris World at Condado or in Mercia
    As he is a client I need no commission from the seller
     
  20. Damian George

    Damian George New Member

    now someone buying - that makes a change ! hahaha

    gone are the days of shooting fish in a barrell
     
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