The Spanish Property Market
0 Comments Published by Property Finder Online on Wednesday, February 13, 2008 at 11:56 AM.
The Spanish property market is made up of many different regional property markets and segments that are very different to each other.
A tiny "cheap" apartment on the Costa del Sol can not be compared with a large luxury villa in Marbella, and this type of apartment has even less in common with luxury villas in Mallorca, or traditional stone houses in Asturias.
They are worlds apart and in totally different markets, with different buyers, vendors, budgets, and supply / demand issues.
So when you hear negative stories and statements about the Spanish property market, they can be misleading. These reports don’t reflect the reality of different regions and segments, which move in different directions.
If you are looking to purchase in Spain, you need to do your homework about the different regions and areas available. It’s a good idea to identify your lifestyle and living requirements as the regions and areas vary greatly.
There may be a region or area that is reported as heading for a crash, but if you are looking to an area that is rising, the reports are not much use to you.
Its all about Location...
It is obviously a time of concern that large areas of the property market in Spain will drop in 2008, especially for holiday apartments on the coast that foreign purchasers look for.
Over the last decade there has been a massive amount of new build property in coastal areas that are coming up for completion. Wherever there are a large number of empty units, future planning approval will decline.
The interest rate will have an effect on the market. The rates are still rising and Spanish banks are nerveous about lending.
The real estate sector has changed the Spanish economy over the last few years, construction makes up a large percentage of it. The economy has relied heavily on construction, and with the economic situation as it is, the demand for most types of property will be effected in most areas, especially holiday homes on the coast.
Having said that, Spain is a massive country with very different markets. The markets differ so greatly that in some areas there will be a downturn, where others will be less effected.
2008 will see a massive amount of standard off-plan developments and properties coming through to completion in already established and built up holiday spots of the coast. Lots of these developments dont offer bespoke or exclusive features, such as Golf course, Sauna, Jacuzzi etc etc .
However, there are less of these properties and developments available in prime and key areas.
Where we will see a slow down in standard apartments, this will also effect more desirable developments in better location, but not as much and not for long.
Price is not always the concern for people looking to purchase a semi permanent or permanent home. Lifestlye and quality of life plays a massive part and a trouble free purchase may be more of a priority than the market value.
Spain is a great place to live and remains one of the top destinations for overseas property purchase given its distance and accessability from the UK and the stable politial situation.
2008 may prove the best time to buy with some cheaper property available on the market. But look at areas with infrastrucual enhancments and developments with quality finishes and facilities...
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