The Spanish property market could soon be seeing a lot more homes purchased through fraction ownership policies. Local agents told EuroWeeklyNews that this type ownership is becoming more attractive to prospective buyers, as capital issues is preventing many people from purchasing a property outright.
Fractional ownership is already popular in the US, but has made its way over to the continent during the financial crisis. Greece and Portugal are just two countries starting to increase their uptake of fractional ownership policies and with prices at an all time low in Spain, the nation is primed for it to take off, the newspaper reported.
Many enjoy fractional ownership for its ability to offer simple, stress-free and potentially profitable property purchase at a much lower cost. However, for buyers with strong capital, full ownership is still the best option and with popular resorts in Spain still proving lucrative, now is certainly a good time to buy.
Analysis of the market by Barcelona-based luxury realtor Lucas Fox International Properties recently revealed that northern Spain is performing particularly well and will continue to do so. Demand and trading is expected to increase this year, and the half-year statistics from Q3-Q4 2012 showed that Barcelona, Costa Brava, Mallorca and Ibiza are enjoying good transaction levels and rental statistics.
Alex Vaughan, director of Lucas Fox, told the Global Property Guide: “Luxury property sales in the best locations of Barcelona, Ibiza, Mallorca, and along the Costa Brava coastline were much better than expected in 2012. In the second half of 2012, prices began levelling off and international buyers were quick to pick up the best-value properties: whether they were luxury lifestyle villas or bank-owned stocks that will require renovations in order to take advantage of their prime location.”
Tax systems and high-speed rail link in Northern Europe are also increasing demand for Spanish property from this part of the world, especially in coastal areas like Costa Brava. In this region, price per square metre ranges from €1,295 (£1,110) in Cadaques to €2,721 (£2,333) in Platja d’Aro.