Is the pain in Spain finally over?
Wednesday, September 29th, 2010
The property market on Spain’s Costas has, if you want to be charitable, been in freefall for nearly three years now but there are promising signs that the unbearable pain in Spain may soon be over – sort of.
Spanish-English developer Taylor Wimpey de España tells me this week that the Brits are back – at last – and the sighs of relief at the company’s Malaga, Alicante and Mallorca offices are palpable.
But the company says it’s only prime properties that are attracting British buyers and usually only in upmarket locations in Majorca and the Costa del Sol. As is always true in recessions, recovery always takes place first in the safest and most familiar markets.
We may have put our dreams of a Spanish home to one side during the recession but Taylor Wimpey España tells me this summer has seen an 80% yearly increase in enquiries from Brits desperate for the Spanish lifestyle including the sunshine, golf courses and Mediterranean beaches. And it’s no longer just the retirees heading to the sun, so far this year 80% of Taylor Wimpey buyers were aged between 30 and 55 years old.
I talked to Victor Sage at Taylor Wimpey, who told me: “Buyers have been waiting for the market to bottom out before they invest. In premier destinations, like Marbella, this is without doubt now the case hence the spike in interest and serious buyers”.
Victor explained that there is oversupply in certain areas of Spain but it is a localised problem and changes from town to town; “the best units in the best resorts will always sell” he assures me.
Prices are 20-25% lower than 2007 but Victor said that if the current demand continues it will push up prices, he thinks that “for those who have been sitting on the fence, sensibly watching the market, now is an excellent time to buy to make the most of the reduced prices and excellent property on offer”.
With less disposable income our property budgets have reduced since 2007 when 45% of us were spending between €250,000 and €350,000 on our Spanish homes. Now 72% of us are on a lower budget of between €150,000 and €250,000 with 60% looking for two bed room properties.
For more information on Taylor Wimpey’s Spanish developments for sale visit their website



