Those trying to sell property in Spain are becoming more realistic, making investment easier for potential buyers. Barbara Wood of Andalucia-based The Property Finders told Property Wire: “A real feature of 2012 was the increasing number of Spanish sellers finally coming out of denial and accepting offers they were previously turning down.”
As more and more people adapt to changing market conditions, a wider array of foreign investors are flocking to Spain to take advantage of historically low prices. This has helped contribute to a positive last quarter of 2012, which witnessed a strong performance across both high-end and low-end markets. Ms Wood claims that when the full year figures are available, there should be an approximate 20 per cent increase in overseas sales.
However, with mortgages still hard to come by, buyers with cash still have the monopoly over their competition and, as expected, they want prime inland and coastal region property. This means that the lower end of the market has not enjoyed as buoyant a year as other areas. To attract buyers, 2013 must bring with it a new wave of realism, with sellers that have “not reduced their properties sufficiently” lowering prices by between 30 and 40 per cent, according to Ms Wood.
This will help to sustain overseas activity throughout the country, which will form the thrust of the market, as domestic buyers continue to struggle with reduced salaries and 25 per cent unemployment, the news portal reported. “Much of the unsold stock will eventually be bought by domestic buyers but with unemployment predicted to remain at current levels or higher through 2014 it will be a long, slow process,” Ms Wood said.
“The number of mortgages granted during 2012 was about 35 per cent lower than 2011, falling for 30 straight months, although there is some growth visible in areas that attract the overseas market, such as Málaga,’ she added. Nevertheless, for savvy buyers and sellers, the Spanish property market still has lots of potential and it is this that will help to draw the sector out of the doldrums.