27% increase investments Spanish Property Market
Increase in sales of Country Property Andalusia
Last week several articles have been published , showing an increase of 27% of foreign investments in the Spanish property market, adding up to a total of 4.748 million Euros, bringing the investments back to the level of 2006. Villas & Fincas has definitely noticed this movement in the market. We’ve noticed a gain of interest during the year 2011, growing even further the first quarter of 2012. The weeks around the Easter holidays were busier as ever. Several country properties have been sold in Casares, Gaucin and the Ronda area. Also luxury villas on prime locations as La Zagaleta and Los Monteros around Marbella are sold. We’re not back on the levels of 2007-2008 when the foreign investments added up to a total of 5.300 million, yet we notice a growing tendancy.
What causes this increase?
This increase in investments has definitely to do with the declining price level. On the one hand we see the vendors taking responsability and lowering the price of their property to create new interest and on the other hand we have a growing amount of reposessed property. Euro Economics mentions that they have been involved in various difficult sales processes, involving bank reposessions. The transfer of a reposessed property is far more complex than a regular transfer. They have also noticed that the purchaser can finance the purchase out of their own means and the sale does not depend on an approval of a mortgage.
Prime Location Casares
Survey Spain adds that only the best properties with top location and facilities, will be bought by purchasers who are not looking for an instant capital gain, but are seeking an ideal home for their own use. The other buyers will be speculators who will negotiate with the banks to sell at even lower than their discount prices and be prepared to hold the property for a few years until the world economy drags Europe and Spain upwards and out of its present malaise. Keeping these properties in condition to occupy and paying off the community and local taxes, will be a cost that speculators may not be prepared to cover until the property is sold, with the result of starving local communities and town halls of current income from these ‘assets’.
We completely agree with both sources. Evaluating this last year we have seen that our top listings of quality properties on prime locations, which were reasonable priced, were sold. We are recomending our vendors to check the bank value of their property, either online on the Tinsa website, which will give a rough indication, or by requesting a local bank to do a valuation.
Top Selection of Country Properties in Andalusia
If you are looking for a country house in Andalusia, you will find below a selection of the best buys of this moment.
Oscar Ernstsen | 10th May 2012
