‘EXCELLENT TIME TO BUY’
The number of British house buyers visiting the country on viewing tours has rocketed by 67% compared to the same period last year, that's according to statistics from the leading British developer in Spain Taylor Wimpey de España, which show the home buyer seems to have returned to the Costas this summer with leads and property enquiries up 80% in August 2010 compared to August 2009.
Victor Sague, Sales and Marketing Director or Taylor Wimpey Spain said that despite challenging economic times, they have seen a sales increase this year with some developments in Mallorca and the Costa del Sol selling out. He told Typicallyspanish.com that over the last couple of years there has been very limited development, especially in the prime locations in Spain, for example, Mallorca and the Costa del Sol. “It is in these destinations that we are now seeing demand for quality and well priced property increase and with limited stock now on the market, in some areas property prices are already starting to rise in response to the demand. We have found that there has always been the interest throughout the downturn, however, buyers have been waiting for the market to bottom out before they invest. In the premier destinations, like Marbella, this is without doubt now the case hence the spike in interest and serious buyers.”
He continues, “Oversupply of property has been suffocating many areas of the market, however, buyers should understand that this is a localised problem, the Spanish market is currently very fragmented. As I have always said... the best units in the best resorts will always sell. For those looking to purchase a bargain home in a prime resort location, they will be disappointed. Yes, prices have adjusted by 20-25% over the last couple of years but there are signs that prices are stabilising and there is still a demand for these desirable locations and now increases in asking prices are reflecting this. Many interested buyers have sat on the fence for the last couple of years, sensibly watching the market, in my opinion, now is an excellent time to buy to make the most of the reduced prices and excellent stock property on offer.”
Taylor Wimpey Spain's figures correspond with statistics from the Ministry of Housing which show that property sales to foreigners rose 26.2% in the province in the first half of the year. Malaga was the province with the largest number of sales made to non-Spaniards during this period, some 1,814. The average figure for Andalucía also grew, but not quite so much, by 23.6 per cent, with a total of 2,772 transactions.
However, José Prado from the Malaga Association of Builders and Developers, warned that the figures did not necessarily mean that the market was on the up once again. He explained that a series of factors coincided to increase the number of properties sold to buyers from abroad, adding that banks were trying to get rid of their stock of repossessed properties by offering excellent mortgage conditions to their foreign clients. He also put the increase in sales down to the fact that many were completing their house exchanges before the increase in IVA which came into effect at the beginning of July.
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