For a good six months to a year now, estate agents all around Spain have been telling us how busy they are? But are they just busy showing properties to the curious, or are they experiencing a rise in sales?
The general feeling nationwide is that the Spanish property market is very close to touching bottom in some places and is actually on the increase in other parts of the country.
The two main property portals agree however that there could still be a further slight correction in prices, with an overall upward turn only coming about when there is an increase in the number of mortgages granted and the national market picks up.
The greatest drop in prices since 2007 has been seen in Castilla La Mancha and in Catalunya with a fall in the region of 50% since 2007. If the current upward trend continues however, leading property valuers Tinsa expect the housing surplus to be taken up by the second half of 2017. In the Balearics and the Canary islands as well as in major cities, much of the surplus has been taken up and while on the mainland, in Mediterranean coastal areas there is still a way to go, prices are already showing an upward trend in some key areas.
Although repossessions continue, the number of sales being completed by banks is continuing at a pace and while there are still some great bargains to be found, the time for waiting for something which in Spain would be referred to as “Bueno, Bonito y Barato” (Good, Attractive and Cheap) is running out.
This is not a time for sitting on ones hands, if you are looking to snap up a bank repossession but be prepared to spend some extra capital on reconditioning or even refurbishing, as often the cash-strapped outgoing owner will have stripped the property of every last fitting and bulb holder. Once you have done it however, you should see a healthy rise in the value of your investment.
Example of a bank repossession: Northern Costa Blanca; 4 bedroom, 2 bathroom detached house on a development with supermarket, restaurants, shops, club house and minutes from the town of Moraira. Built area of 162.20 m2, panoramic views, terraces and own pool. Suggested price €228,000 – offers invited.