SPANISH PROPERTY MARKET
8
COMMON QUESTIONS AND ANSWERS REGARDING THE SPANISH PROPERTY MARKET
1- Is it the right time to buy?
Nobody can say 100% whether now is the right time to buy, speculating that property prices have reached the lowest possible level. Many experts have failed to predict this accurately since 2009-10. The fact is, prices have been dropping since 2007 and the average drop on the Spanish coasts is about 34% whereas in the cities, it is around 30%. We would definitely say that this is the right time to search for properties in Spain since there are already excellent bargains to be found there.
2- Has the market touched rock-bottom?
Again, that is difficult to be 100% sure about, but we believe that with the general financial pressures of the Spanish economy, and the financial reforms that were adopted in early 2012, it is very likely that during 2013, the housing market will reach its lowest, in price terms.
Spanish economy, and the financial reforms that were adopted in early 2012, it is very likely that during 2013, the housing market will reach its lowest, in price terms.
3- What sort of market are buyers facing at the moment, if they want to buy?
Presently, the large supply of properties in the market, is causing prices to decrease: large supply + low demand = lower prices. In addition, the financial problems that Banks and Savings Banks are facing, due to their large property stock, is forcing them to release more and more assets into the market at lower prices. This also increases pressure on private sellers who are now competing on price with the discounted Bank stock.
4- Should I be sceptical about agents and developers?
Have you watched “Cowboy Developers” on Channel 4, in the UK? If so, you know that everywhere there can be sharks. Bad press in the UK tarnished the Spanish market during the boom of the 2000s. Now, the Spanish market is becoming more transparent. Professionals are driving the market and substandard agents and developers had to close or run away when the bubble burst. Always obtain good references!