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Spanish Property Market 2008

As someone working in the real estate industry in Spain, I'm going to be blogging about the current state of the property market down here, especially the Costa del Sol area.

Property Market in Marbella 2008
28 May 2008

Current market conditions

Well folks here we come to another year ending 2007 of a topsy turvy time in the real estate industry in the Marbella and surrounding areas.

Whilst property values may have taken yet another battering for those keen to sell in a hurry!!!, or for those who have over stretched there financial investments in a unstable market, and have no choice,,, not every vendor/seller is willing to take the knock whether it be 10% or 20% off his asking price, the most ardent seasoned investor/owner will sit back and wait for the property market to stabilise, lets be honest the boom could not continue every thing peaks and falls, interest rates along with it, but be rest assured that Marbella is still only 2.

Hours from most European airports and the sun continues to shine according to Spanish statistics for at least 10 mths of the year and a average daily temperature of 20c.through out the year, that will never change, what more could you ask for!!! , whilst investors, who by rule of thumb like a 5 year turn around on there investments, and generally buy off plan, have left our shores for the time being, be assured they will return, as the old adage goes you sell cheap you buy cheap, investors are a small percentage of the buyers who come to our Spanish shores, Northern European buyers predominantly come to buy a holiday home or a place of retirement irrespective of the market forces .or trends, We have witnessed a sombre years trading, with most sales being followed through and hitting the notary for completion after a 5% to 10% reduction off the asking price, having said that I have never sold a property for the asking price in my 7 years of real estate...... on the Costa del sol.

We were however fortunate to succeeded in selling a quaint little villa in Mijas to a very well known uk television celebrity, who shall remain nameless due to client confidentiality, that being a high point in the year we spent many hours on the road with endless clients mostly bargain hunters, looking to buy up to 20 % off the asking price? But to no avail, this is not Morocco its Marbella, and the successful business men and woman who came to Spain after making there money are not likely to be giving there hard earned luxury homes away, unless there’s another bargain around the corner of course, highly unlikely.

It’s not a lottery. The currant climate in the Spanish property market today is no different to any other European country, rising euro interest rates and the UK rates, have all been factors in the correction of property values, America lends to much money? Catches a cold, and Europe sneezes, this has not been helped by unjustified, exaggerated, media coverage in the UK and European daily tabloids, Costa del this? Costa del that?

Endless reams of tabloid trivia, however I am a firm believer there’s no smoke with out fire, but to under mind the whole Spanish property sector as being in rapid decline is absolute rubbish, in reality this is not happening,,(fact) the Spanish property market has been bouncing along and has been for the last 2.1/2 years not buoyant, but keeping prices into check, my forecast is that within the next twelve to 18mths months we shall witness a small rise in confidence along with prices ,not like the bubble we experience before we do not want that, but as a good time to buy, as we are all fully aware UK interest rates are now on the decline, this is a good sign, to our over heated UK economy, and the same in Spain we needed the correction.

 



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