The Spanish property market has been in deep decline ever since the financial crisis hit, and in some regions even before that. Sales have dropped dramatically from an annual level of over 70,000 in 2007 to around 30,000 in 2009, with property prices falling anywhere between five and 50 per cent, depending on property type and location. However, where the market was in freefall for much of 2008 and 2009, it now appears to be levelling out. January 2010's 1.4% increase over the same time 12 months ago was the first time the Spanish property sector registered growth in over two years.
For the property sector a modest recovery like this forms an important sign of hope, indicating that the floor of the current property cycle has been reached. From here on out, there will be a recovery over the next few years in which prices and sales will level out for a while before resuming gradual growth. "For buyers, therefore, this is the perfect time to buy, as they will be able to buy property at the lowest price levels in years whilst knowing that they are making a good investment in the medium term," says Michael Liggan of Altavista Property Spain, specialists in sourcing quality real estate at optimal prices.
"The property market is not as clear-cut as some people might think," says Liggan. "There is a real crisis in mass-produced real estate in overbuilt areas, but equally demand has remained strong when it comes to quality properties in good locations that offer value for money." When it comes to resales one has to factor in the financial situation of individual sellers, which affects how much they discount their property. "This means that you could find two neighbouring or almost identical properties that vary considerably in price," says Michael Liggan. "We find our buyers those properties that offer optimal value for money."
"People tend to think that the best time to buy is when the property market is boisterous and the hype is up, but unless you're buying with short-term profits in mind you'll get better value for money buying at a time like this, when prices are very low in real terms and finding the right property represents a very good medium to long term investment." In spite of this, Altavista Property focuses more on end-user buyers driven by lifestyle than on investors. "The strength of this area lies in its quality of life, which is what maintains demand for it. It will be some time before credit becomes more readily available again and the market broadens considerably. Banks are slowly starting to provide mortgages again and AltaVista Property Spain has many good contacts with chosen branches, who are currently helping to process several mortgages for clients. This service is offered to all clients buying property via AltaVista, a considerable advantage considering that at the moment the market belongs primarily to those people with capital or access to financing. Above, all," says Michael Liggan, "it is a buyer's market for those people who know the area, its lifestyle and properties, and who are sophisticated and knowledgeable when it comes to property markets."
0 Responses so far.
Post a Comment