The Spanish property market is currently famous for its glut of up to two million unsold properties but one region, the Costa del Sol, it seeing a revival in sales, it is claimed.
Coastline homes of all qualities and price ranges are selling well as those able to access finance are going for rock bottom prices.
The most up to date figures from the National Institute of Statists show that house prices fell 14.4% over the 12 months to the end of June. Resales fell 15.7% and new builds by 12.8%. Experts believe that prices will probably continue to fall at an accelerating rate for the rest of the year.
‘We are now in a situation where the best bank owned developments are selling out within weeks. If they tick the right boxes on location, views and price, these homes are simply not hanging around and we have a genuine shortage in some areas,’ said Nick Stuart, director of Marbella based estate agent Spanish Hot Properties.
He gives as an example Bahia de Plata on the New Golden Mile, a beachside development next to the five star Kempinski Hotel, where all 130 apartments priced between €164,000 and €260,000 sold out within a fortnight of their release by Banco Sabadell.
Properties in higher price brackets are also selling. Tee 6, a contemporary golf development overlooking the fairways of Los Flamingos priced from €330,00 and €451,000 and within walking distance of the six star Villa Padierna Palace Hotel, is also completely sold by the bank.
Another where sales are moving fast is the bank owned project Santa Maria Village in Elviria, near Marbella, where prices are discounted by up to 60% and 85% finance is available.
‘What’s interesting here is that, despite prices starting from €179,000 it is the most expensive penthouses at €360,000 that are selling like hot cakes. The reason is they’re at least €250,000 cheaper than any comparable penthouse in the area and an unmissable opportunity,’ explained Stuart.
Official figures out in September suggest that sales are being boosted by a surge in foreign buying interest. As property prices collapse, overseas buyers are swooping and transactions in the second quarter of 2012 were up 12% on the previous year. Some 9,502 properties were purchased by foreigners from May to July which is the highest seen in Spain for four years.
And a study by Spanish real estate agent Inmoaction found that 56% of British people enquiring about the Spanish property market are actively interested in purchasing and 27% of respondents said they would buy a second home in Spain.