The property market in Spain has been under the spot light now for the past three years as the property bubble burst leaving many second home owners with over valued properties and large repayments on a property that in some cases wasn;t worth the paper it was written on.
Three years further down the line, the fear stages of the property bubble looks as though it has passed seamlessly and now the despair phase is now looking to return to the mean. This is now creating a different problem within the Spanish real estate industry as the cheap priced properties have now ebbed out and with a return to the mean properties are now no longer as easy to located at bargain basement prices.
This has caused a stir amongst Estate Agents as they seek to market properties to clients that were not in a possible to purchase in the height of the fear stage, as property prices took a massive drop and distressed sales were evident for all to be seen. With potential buyers now in a stronger position to commit to a purchase, the unfortunate situation of the glut running dry has hit many areas in Spain, but none come close to that of the Costa Blanca.
Homeowners that were not in need to sell for financial reasons have held firm which will benefit them in the near future as we expect to see a slow yet evident rise in property rises over the next few years. Now the market has hit a rock as no one is in need to sell or in fact wishes to sell their Spanish property. Mortgage lending is also down to a new low set 19 years ago, which is not due to banks not lending or buyers not buying, it’s simply because there isn’t enough properties for sale that match the requirements of these potential property buyers in Spain.
This may be a far cry from the situation that is stalling the property market in regions such as Andalucia in southern Spain, where properties are thought to still be over priced with a huge glut of unsold homes in desirable places.
One large problem still facing Spain is the uncertainty of the European Community and the task of the newly elected government to stave off unemployment and create new jobs. With the settling of both, we can see a bright future in the not too far distance future for the Spanish property industry once more.
Spanish Property specialists the Resale Centre, the longest established British Estate Agent in Torrevieja.
