Spain has so much to offer, particularly to those individuals who are seeking to live in a laid-back country with diverse scenery and culture. The Spanish property market may still be in a slump today. Even so, many people still consider buying a property in Spain, and immigrants continue to pour in.
The excess in supply of Spanish properties along with the decline in its demand are still the reasons why the property market has not recovered yet. vastuplus According to TINSA, property prices have dropped by 12.5% in April 2012 (30% since 2007). Almost 1.1 million new homes, approximately one-third of them are holiday homes, are still unsold. Most home sellers are forced to lower their prices.
But Things Are Looking Up
Claire Nessling, director at Conti (an overseas mortgage specialist), reported that there has been a 33% increase in Spanish mortgage inquiries. This is because many home buyers are taking advantage of the current status of the Spanish property market in order to shop for bargains. The decline in property prices is enticing more and more bargain hunters.
The Corporate Practice Institute has revealed a 23.6% reduction in the stock of unsold Spanish homes in 2012 in its 17th edition of the Real Estate Pulsometer. There has been an evident growth in the trend of home sales for cash, particularly because prices are now lower and many individuals who are renting have finally decided to buy their own Spanish houses.
Moreover, a lot more foreigners are engaging in the buying and selling of various Spanish properties. In 2010, the British were the top buyers of properties in Spain. The French followed their tracks along with Chinese and Russian investors who are eagerly snapping up deals on the Spanish Coasts.
The Spanish government is planning on offering residency permits to foreign investors who would buy property worth 160,000 euros ($203,845) or more of Spanish houses, as reported by the NY Times. The Spanish trade secretary, Jaime García-Legaz, stated that the plan targeted the Chinese and Russian investors who are (not members of the European Union) continually purchasing different types of Spanish properties.
Evidently, the housing purchases made by foreigners rose by 6% in 2012. This contributed to the slow but steady improvement in Spain’s property market. As such, the plan aimed to deal with the country’s huge stock of unsold properties and also to boost the status of foreign investment. Even so, numerous critics find this plan a desperate effort to revive a troubled property market.
No Reason To Give Up
Indeed, despite the distressing state of the Spanish property market and the Spanish economy, there are still many reasons to move to Spain and buy your dream Spanish house. Things are finally looking up, and Spain will eventually regain its prosperity. Spaniards are not running out of patience and hope. Many property owners are still waiting for the eager buyers willing to pay the ‘right’ price.
Kyero.com, the leading property sales portal, claimed that they expect to see some slight but steady improvement in 2013. The firm’s spokesperson said that there would be a steady house price growth in Spain between 2013 and 2018 if the market continues to show the 10-year peak to trough cycle.
According to El Mundo, one of the leading newspapers in Spain, several signs of recovery are starting to manifest in Spain’s property market. The continuous demand from foreign investors is said to be one of the keys that will make it possible for the real estate market to recover and thrive in the many years to come.
So whether you are merely looking to buy a Spanish holiday home or have finally decided to live in Spain, always remember that it pays to conduct extensive research. You must be prepared to deal with the process and potential issues of buying a Spanish property. Do your homework and make the necessary preparations. More importantly, keep updated with the relevant information regarding Spain’s property market. The more informed you are, the easier it gets to buy your own Spanish home.