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Mac's Poll - Let's Vote

Curious to know what the general opinion is? Cast your vote and let's see!!

POLL : Has the Spanish property market hit rock bottom yet?
09 January 2013 @ 17:10

 

455 Participants.  32 Comments - first week of voting .  Thank you all for participating, this was an extremely interesting poll and the results were not what I had personally expected. 

 

 This is a daily question that is being asked by so many people and it is a topic of discussion in several threads, but as there are many members that don't normally post their opinions in threads on a regular basis and many that are still interested in knowing how the market is going I thought it would be an interesting poll to get a general idea of how the market feels at the moment and if it hasn't hit rock bottom, when will it?

Please cast your vote.... and leave a comment



Like 0




34 Comments


Healthyannie said:
10 January 2013 @ 16:46

I think there is some time to go yet. I suspect we will see a mass exodus of young people leaving Spain within the next few years. They will be finishing off university, well educated but no jobs. No jobs = no property sales.
Retirees may move further a field - 4 bedroom apartment in Cairo £28,000 and everybody speaks English. Egypt is planning a massive campaign to promote new builds and historic properties. Private health service, English speaking and well qualified doctors. If you just want sun . . . where would you go?
All the UK airlines are adding to their Egyptian routes.


Steve Hall said:
12 January 2013 @ 03:47

Still a long way to go . Another 25% meat on the bone?


Haze said:
12 January 2013 @ 08:28

With so much property being put on to the market at low prices by the banks, it will be years before the demand outstrips the supply.


arabella said:
12 January 2013 @ 08:37

Spain as with most of Europe, will be feeling the economic downturn and stagnant job markets for the forseeable future. If Spain ditched the Euro and went back to the peseta we would see properties selling, but at prices much reduced against the Euro.
While I can see thst Cairo maybe attractive now willit be stable in 5 years?


Robert S said:
12 January 2013 @ 09:49

a tube of toothpaste is only worth 1Euro or 1 UKP if someone somewhere will pay that for it

Spanish do not generally buy the sorts of property built for Uk Scan and other foreign buyers
also with zero jobs in Spain most will have to move to other countries S America or UK
and Spain has not yet sorted out illegal builds meaning potential buyers are put off
local Taxes are rising in many areas and Fuel and eating becoming more expensive

I do not think property prices will rise for 5 to 10 years


Robert S said:
12 January 2013 @ 09:51

a tube of toothpaste is only worth 1Euro or 1 UKP if someone somewhere will pay that for it

Spanish do not generally buy the sorts of property built for Uk Scan and other foreign buyers
also with zero jobs in Spain most will have to move to other countries S America or UK
and Spain has not yet sorted out illegal builds meaning potential buyers are put off
local Taxes are rising in many areas and Fuel and eating becoming more expensive

I do not think property prices will rise for 5 to 10 years


Alan said:
12 January 2013 @ 10:01

Well it depends who you listen to.
In the last couple of weeks, the British press has indicated that there is still an imminent further 50% drop in property prices in Spain.
Hard to believe I know, but after looking for a property for over two years, (and watching the values "crash & burn"), it's hard to discount any bad news...Alan.


Ron Bennett said:
12 January 2013 @ 10:06

I am sorry to say that the Spanish property market is going to be dead in the water for the forseable future, the economy is bankrupt and the politicians refuse to admit this hence the massive interest rates that the Spanish people are being asked to fund, the banks are doing absolutely nothing but make the situation worse by repossessing ad hoc and keeping interest rates high.
I have a froont line beach property for sale and not one viewing in 3 years, make sense of that, god help those unfortunates that have purchased in the back and beyond.!!!


jimmi said:
12 January 2013 @ 10:42

Depends on the property you want. The vast quantity of cheap, faceless urbanisation 2/3 bed properties will be bulldozed eventually or sold after yet another 20% drop in prices. The more attractive properties, larger, in better areas and close to cities/airports, won't drop much more. Cash rich Brits are returning to pick up the bargains so this will stabilise prices on certain properties.


jimmi said:
12 January 2013 @ 10:46

Depends on the property you want. The vast quantity of cheap, faceless urbanisation 2/3 bed properties will be bulldozed eventually or sold after yet another 20% drop in prices. The more attractive properties, larger, in better areas and close to cities/airports, won't drop much more. Cash rich Brits are returning to pick up the bargains so this will stabilise prices on certain properties.


anne mashhadi said:
12 January 2013 @ 13:14

With things as they are in Spain ( unemployment in Spain and elsewhere, uncertainty about the euro,difficulties in getting finance etc) I just cant see how the current advertised prices are realistic.My husband and I are now looking at long term rentals instead. There must be many others like us which reduces demand even more. Unless you have plenty of cash in the bank, dont need to work and are certain you want a lifestyle change I cant see why anyone would want to buy at the moment.


Rob Innis said:
12 January 2013 @ 13:51

IMO The prices are now at rock bottom because for many people it is simply not worth selling any lower - what good is cash with bank interest rates so low. The banks still have stock but much of it is rubbish. Sales in southern Costa Blanca were up last year, lots of new estate agents opening up and population is rising so after 5 years. The market is mainly selling to Scandinavians, Russians and Chinese - they have money.


wodger said:
12 January 2013 @ 14:09

I wonder if other areas in North Africa ( Med. Coast ) will become " the new Spain/Greece/Turkey" Developers will have to offer very competitive prices given that there are less buyers from the "rich" countries of Northern Europe. I suppose that availability of cheap & frequent flights is also another important factor. What about Romania ( Black Sea ) & Albania?


Tom shaw said:
12 January 2013 @ 14:55

Message to Ron Bennett, we sold 32 properties last month and the supply is starting to outstrip the demand for quality properties. If you haven't had viewings on a beachfront property you are not realistic on the value.
Get in touch and we will sell it

Tom shaw
Bargain Andalucia
603789792


Tom shaw said:
12 January 2013 @ 14:58

Message to Ron Bennett, we sold 32 properties last month and the supply is starting to outstrip the demand for quality properties. If you haven't had viewings on a beachfront property you are not realistic on the value.
Get in touch and we will sell it

Tom shaw
Bargain Andalucia
603789792


Tom shaw said:
12 January 2013 @ 15:01

Rob innis knows what he is talking about!


Tom shaw
Bargain Andalucia
603789792


Tom shaw said:
12 January 2013 @ 15:15

Rob innis knows what he is talking about!


Tom shaw
Bargain Andalucia
603789792


Steve said:
12 January 2013 @ 15:17

In our area 2 large 4 bed property's sold in the last month or so for in excess of £220,000 although we are inland and in a nice Spanish village things IMO are picking up the odd crane has appeared and an agent I know has said he is busy with correctly priced property's
I think we are near if not at the bottom if you have a property on a golf course with1000s of others I think you will struggle for years but if you have something in the real old Spain in a good area then well fingers crossed only one way
I'm moving to Spain in march this year
Because for every 100 people that moan about Spain there's 100 that don't its the same in England everyone moaning so I don't think anyone is right or wrong it's all about personal choices

Good luck everyone if your buying or selling
:)


Steve said:
12 January 2013 @ 15:18

In our area 2 large 4 bed property's sold in the last month or so for in excess of £220,000 although we are inland and in a nice Spanish village things IMO are picking up the odd crane has appeared and an agent I know has said he is busy with correctly priced property's
I think we are near if not at the bottom if you have a property on a golf course with1000s of others I think you will struggle for years but if you have something in the real old Spain in a good area then well fingers crossed only one way
I'm moving to Spain in march this year
Because for every 100 people that moan about Spain there's 100 that don't its the same in England everyone moaning so I don't think anyone is right or wrong it's all about personal choices

Good luck everyone if your buying or selling
:)


JWhite said:
12 January 2013 @ 17:04

There is always a market for the right priced goods and this especially applies to property in Spain. We tried for 2 and a half years to sell our apartment in Algorfa, but it was only when we asked another estage agent what was a realistic price to sell at that it sold. It sold for approx. 45% of the purchase price and this is what buyers are looking to buy at. You can tell yourself what you like but at the end of the day it is a buyer's market, so unless you are prepared to be realistic, forget it. As for the future, with illegal builds and the EU dragging its feet about compensation which is putting people off, plus there are cheaper economies around to buy in where there is still sunshine, plus the price of flights, these factors will always drive the markets. Spain was popular due to is distance from the UK but flights have shot up in the last few years, which was another reason we sold our property. Now the world is a much smaller place but people have a lot less money in most EU countries, so unless you are selling outside the EU, prepare to have to reduce your price considerably.


Enna said:
12 January 2013 @ 17:20

Thank you Rob Innis - you wrote "The prices are now at rock bottom because for many people it is simply not worth selling any lower" now I have faith in my convictions.

We bought our property 9 years ago and used it as a holiday home but now we live here permanently want a bigger place: Does anyone feel that 110,000 is a reasonable price for - OK its in a scruffy Spanish village in the historic part, but the people are fabulous. So far I am afraid the English Estate Agents around Oliva have been down right rude, so are considering Spanish Agents. And you want to see the pictures of one agents - I couldn't believe it - where has he been all my life???? Terrible effort. I haven't the room to tell you how rude except to say I was embarassed that an English person could speak to another English person like that.


Sid said:
12 January 2013 @ 22:51

It depends where in Spain you are, and the desirability of your property. My mother In Moraira is getting several viewings a week, and is holding out for the highest price. The value of her property does not seem to have dropped in Euro terms, although I suppose due to inflation it has.
We have an apartment in San juan de Los terreros which is well managed, but has been on the market for a year with no interest. I think we will rent it out for a few years-maybe things will improve.


phillip said:
12 January 2013 @ 23:18

i don't think property selling prices will drop further in my area(garrucha)where the spanish are buying. also i think uk property is stabilising/improving so the brits will be back.


Rob said:
13 January 2013 @ 05:09

An agent can sell a dog kennel if the price is right, so I dont ever think the issue is about the "possibility" of a sale, more a case of how low a buyer is prepared to go.

But in saying that, I'm hearing about signs of life in the market that I havent heard for a few years now.

Also, whether its true or not that foreigners like Chinese , Russians, etc will be offered citizenship if they buy, these types of solutions will be positive steps for those wishing to attract and captivate buyers.

I have an interest in this, as I'm in the middle of a build, and have been wondering about when to time the completion (started in Sept 08, and has included my builder going under...). I recently spoke with 3 separate project managers, who each told me that there are new buyers nosing around, and that some of their projects have actually moved on.

As a separate point, I think theres a difference between apartments and villas. The apartments have depreciated significantly, whereas I think a quality villa will not have fared so badly.

Maybe its a case of how financial the owners are, and how long they're inclined to hand on. For my part, I bought into an area where the average house is around 2m euros. At the AGM, no one seems too concerned, and they're staying put for several years if needs be.

If you can hang on, hang on.


Conrad A. Bedford said:
13 January 2013 @ 11:22

Bank stock - Repossessed - Fairly sure these will have to be reduced to move ... like what RI mentions prices are almost at the bottom and sales in southern Costa Blanca were up last year ...

From our personal experience Northern Europeans are buying and buying frequently - the UK market is almost stagnant and / are completely unaware of what is going on in the Costa Blanca region.

We've stopped promoting bank/repo stock as most clients are "put off" either the properties are in poor locations, needing a lot of internal work or just very, very tired old school stock in the wrong locations and in most cases still overpriced.

Todays buyers want open spaces, large living areas and the latest modern builds - that's all what we are selling, and selling well.

// Overseas Property Shop
http://www.overseaspropertyshop.com






will Needham said:
13 January 2013 @ 18:34

Bargain properties are shifting fast. How do I know? I have access to the data of a couple of Spanish Banks, I run www.spanishproperty.es

That said alot of vendors are still massively overpricing their properties. They chase and chase the market dropping there prices too little too late.

I expect the general trend of asking prices to continue falling, sales will continue to rise (they have been rising for the last 4 months).

It's incorrect to compare Apartments in the commuter area of madrid to a property in an expat retirement area.

Properties in Spanish areas, will sink faster than property that is desirable to expats, due to huge unemployment and emigration of Spaniards looking for work.

More Russians are purchasing than ever before. The new residency rules (purchase over 160 and get residency) will see more buyers from India, China and Russia.



Michael Soffe said:
13 January 2013 @ 19:20

Sadly, I feel they will drop a lot further. I have Spanish friends in Malaga capital who have had a three bedroomed, 3 bathroom apartment with two terraces and a sea view on the market for 150k for the last year. Lovely place and well priced. A neighbouring apartment, that is a bank reposession went on the market at 90k last week and sold in a day! These would have sold for 250k (Euros) going back 4 or 5 years ago.

If the banks keep shedding their caustic debt in this manner then the market can only spiral downwards. Bargain hunters are out, but only with the real bargains.

In my village inland from Malaga where I hav a cortijo there is little or no movement.


Michael Soffe said:
13 January 2013 @ 20:01

Sadly, I feel they will drop a lot further. I have Spanish friends in Malaga capital who have had a three bedroomed, 3 bathroom apartment with two terraces and a sea view on the market for 150k for the last year. Lovely place and well priced. A neighbouring apartment, that is a bank reposession went on the market at 90k last week and sold in a day! These would have sold for 250k (Euros) going back 4 or 5 years ago.

If the banks keep shedding their caustic debt in this manner then the market can only spiral downwards. Bargain hunters are out, but only with the real bargains.

In my village inland from Malaga where I hav a cortijo there is little or no movement.


Michael Soffe said:
13 January 2013 @ 20:19

Sadly, I feel they will drop a lot further. I have Spanish friends in Malaga capital who have had a three bedroomed, 3 bathroom apartment with two terraces and a sea view on the market for 150k for the last year. Lovely place and well priced. A neighbouring apartment, that is a bank reposession went on the market at 90k last week and sold in a day! These would have sold for 250k (Euros) going back 4 or 5 years ago.

If the banks keep shedding their caustic debt in this manner then the market can only spiral downwards. Bargain hunters are out, but only with the real bargains.

In my village inland from Malaga where I hav a cortijo there is little or no movement.


Michael Soffe said:
13 January 2013 @ 21:19

Sadly, I feel they will drop a lot further. I have Spanish friends in Malaga capital who have had a three bedroomed, 3 bathroom apartment with two terraces and a sea view on the market for 150k for the last year. Lovely place and well priced. A neighbouring apartment, that is a bank reposession went on the market at 90k last week and sold in a day! These would have sold for 250k (Euros) going back 4 or 5 years ago.

If the banks keep shedding their caustic debt in this manner then the market can only spiral downwards. Bargain hunters are out, but only with the real bargains.

In my village inland from Malaga where I hav a cortijo there is little or no movement.


Campbell Ferguson -Survey Spain said:
14 January 2013 @ 08:32

The active market of the best properties is seeing competition so sale prices not falling any more. However, bear in mind that some asking prices haven't been reduced to the market level yet. As for all the rest of the market, we wait to see how the Spanish 'Bad' bank is going to release its load of property. Only then will the market be fully informed and stabilise.


Paul said:
15 January 2013 @ 18:53

It's a complex question because the market is hugely fragmented and dominated by bank stock. So we have this huge gap between asking resale prices and the rock bottom bank prices offered by some banks in some regions. Where priced right the market is flooded with buyers. We saw this with the CAM bank promotion in October 2012. From this year most of the bank stock is now controlled by Banco Malo - SABER with a more leisurely 15 years to clear it. My guess is bank prices will have seen their low point at the end of 2012 and start to rise but resale asking prices will still come down. When they meet we are someway towards a normal market again.


Jeremy Sandle said:
19 January 2013 @ 09:03

What a negative lot you are! Talking the market down seems to be the order of the day. We all know the economy is on its knees but Uk isn't a whole lot better. This week we have seen a batch of big retailers fall over! In the uk young people can't get jobs either and certainly can't get mortgages. So unless you are in best London your property prices are dropping too! The old adage is still true Location location location. If you have desirable property in a great location it will sell. The scandanavians are buying such property in Mijas because it is a traditional village with lots going on, fantastic walking country easy access to malaga, and no more than 2 hours drive to fantastic cities and skiing. Plus it's 20 minutes to the airport so prices are holding up quite well. The Russians and Chinese are buying in Marbella. I do feel sorry for people in remote places or soulless modern developments with no traditional spanish heartbeat. People aren't going to be wanting to buy these locations for a long time.


James Ensor said:
15 June 2013 @ 08:56

There is far more competition for sales of apartments and villas to British and Germans than there was a decade ago. It is not just Cairo. Turkey, Morocco and the Cape Verde islands have each had property boom and busts in this time. They also have masses of unsold holiday property which locals do not or cannot buy. Prices are on the whole lower and the weather in winter at least is warmer. This winter which has been cold everywhere saw temperatures 10C warmer in the Cape Verde islands than in the Canaries. Many people have moved south from the Canaries although the islands are far more primitive and knowledge of English limited.


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