Spanish Property

» A short answer to the question is no!

» The worldwide downturn in the economy did spark a huge worry with potential property buyers not only those that were looking to buy in Spain but also in all countries throughout the world as no one really knew how bad it was going to be and how long it would last for. But as we have been slowing seeing the effects, the results are not as bad as what we first thought.

» In fact, it has done the industry here in Spain the world of good to be quite honest. Property prices have been rising for some time now and in some areas the demands were getting to the point of stupidity, there was not much room for any more growth and now we can see the cycle starting again, but not as good as it was first time around for buyers that are now looking at the property market in Spain.

Distressed sales

» My comment on the cycle coming back around and prices not being as good as they once were is because there was simply too much demand in Spain compared to the actual supply. In our days the supply far out weights the demand and people are a lot more aware of the market here compared to the days when people simply booked an inspection trip and were shown around by just one estate agency.

» However there is an opening for those that still want to bag a bargain and that is by seeking out a distressed sale, and there seem to be plenty of those around at the moment! A distressed sale is a home owner that is in need to a very quick sale, this can be down to dozens of reasons. The main reason for these types of property coming on to the market is due to the property owner not being able to keep up with mortgage repayments that were set out in the terms by the bank, the mortgage repayments may also be in arrears with the owner facing possible repossession by the bank if payments are not paid up to date. Distressed sales of property can also be due to personal reasons, family, work, health ... there are many reasons why a property can become a "distressed property".

» The reason why distressed sales are so popular is because that in most instances, these properties fall way below the true market value or bank valuation, in some cases or most cases up to 25% less than the value of the property in question.

Estate Agency sales in 2009

» Most estate agents will not go out there telling people how many properties they have sold, especially not there fellow competitiors! However, estate agencies throughout the Costa Blanca that have managed to survive and adapt to the new market would be able to tell you that it is not all doom and gloom - if anything they have been busier this year than in the previous two or three years.

» This is simply down to the fact that potential buyers are now out visiting properties with dozens of estate agents all in one visit to Spain.

» Estate Agents have now had to adapt to the new market in Spain where you have to have the BEST possible priced properties, low commissions and low overheads to keep up with the game. The old days of high commissions have now gone and estate agents have now more or less stopped the old fashioned inspection trips to cut costs to be able to keep the commissions down.

Outlook for 2010 and beyond?

» Prices can't fall much further, those that have been keeping a close eye on the market here in Spain waiting for the market to bottom out will soon have to get in here quickly before prices do start to rise again. With lots of the big developments coming to a stand still in 2009 because of the economic crisis stopping them from continuing, the resale market has been given a fresh and new lease of life. People will continue to come to Spain to live permanently or to buy a holiday home - so the outlook is good for the up and coming years.

Author info:

Mevilla C.B is the longest established estate agent based in Cabo Roig servicing the area for the past 10 years, if there is a property for sale in Cabo Roig - there is a 99% chance that the owner Olaf Kunigk has it on his books! We are able to assist you in all aspects of the buying process in Spain, building / planning and extending your property and management of your property if you are going to be away from it for many months of the year.

Mevilla C.B - the 1st stop and only shop for properties in Cabo Roig for sale.