With unemployment at record levels and property price falls accelerating in many areas, good news from Spain is thin on the ground.
Much has been made of Spain’s property glut but it seems that in the Costa del Sol at least, falling prices are beginning to clear the market.
According to the Association of Builders and Developers of Malaga (ACP) 10,000 new homes were sold in Malaga province in 2011 which is nearly half the 25,000 new homes on the market at the start of last year.
Could this be the start of shortage of property in established holiday home areas?
Ironically the answer is probably yes, although it may take some time.
Holiday home markets were hit fast and hardest by the crisis but since then international demand has proved more robust than demand from the domestic market.
Sales volumes are still significantly lower than their peak levels but new supply is likely to be subdued for a long period. Property markets work in long time lags and construction levels could take at least five years to return to “normal”.
In established destinations such a Marbella, where international demand is strong, 2012 could be the last year it’s possible to pick up real lifestyle bargains.
Source: www.globaledge.co.uk
Michael Liggan of Altavista Property Spain is keen to emphasise that last sentence to potential buyers in the Marbella area – “2012 could be the last year it’s possible to pick up real lifestyle bargains”. Altavista Property Spain currently have a wide selection of bargain discount property in and around Marbella, Puerto Banus and the other popular destinations on the Costa del Sol. Many of Altavista’s exclusive developments, offering luxury apartments, penthouses, town houses and villas, are available with up to 100% mortgages. But, says, Michael Liggan, these kind of opportunities won’t last long. As the article suggests, when the current supply is exhausted, a resulting lack of supply could very easily lead to rising prices again.
Related posts:
- www.altavistaspain.com – Marbella Property Market Study shows prices stabilised
- AltaVista Property Spanish Property News
- What Michael Liggan of Altavista property expects for the Marbella Property Market in 2012?
- Altavista Spain news: Purchase Tax on New Spanish Property Halved
- Altavista Property Spain News: Tax Write-offs for Home Improvements