Has the Spanish property market hit the floor??? The Spanish government have been on the road lately promoting a PR exercise stating that the Spanish property market is on the rise! My opinions are not too dissimilar to that of the government´s but they are based on different facts. I base my opinions on what is actually happening on the ground. I think a potential rise in the market is based on 3 factors, stemming from the old Supply and Demand argument. It is also based on the Resale market which is the most vibrant and realistically priced market. Builder ´Key Ready´ properties and Bank repossession properties are still above the market value as their prices include built-in bank and builder debt. They are not based on client debt which is much more elastic because it depends more on human behaviour and personal circumstance. Have we hit the floor? Yes, I believe so.Why?We are still selling a high volume of properties monthly. Also, our enquiries are high, therefore the buyers are out there. Demand is high.Vendors have stopped dropping prices and would rather take their property off the market. Prices are now at the 1990's level.Interest rates are at an all time low and banks are starting to release more funds into the market. Normally a boom follows a period of low interest rates.
I predict a slow rise in Spanish property prices over the next 2 years. Of course other factors will influence the market, such as unemployment in Spain, bank debt, the strength and stability of the Euro and the strength of Sterling affecting the Spanish expat areas.
In summation, Spain has learnt a lot from the last recession
now having a more stable property market, a tighter fiscal legal system and a more stringent banking system. So, is in the right time to buy? In the more established locations, yes!
Kieran Byrne - Managing Director of an Estate Agent in Spain
(B.A in Economics, MA Business Administration)
http://www.spanishdreamproperty.com/
Info@spanishdreamproperty.com
Tel 08432896384 low cost call
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