3 Reasons Why the Spanish Property Recession Experts are Wrong
19 Nov 2010
Well you have probably read article after article about how Spanish property is heading for another crash and is 47% overvalued. The difference on the ground is completely different with sales volumes considerably on the increase and the best properties for sale in Spain deals already taken from the market place with the obvious question is why?
SUN & LIFESTYLE
Well just speaking about Andalucia, Marbella and Costa del Sol where I live that has 325 days of sunshine a year and where the sun sets at 6pm on the shortest day of the year it’s no wonder Spain appeals to more than the local people. With a choice of lifestyles and great options open to non- residents it’s no wonder more and more people want to come and live in Spain on a permanent basis.
DATA IS ONLY BASED ON THE LOCAL POPULATION
One of the major failing in most of the analysis being carried out is they don’t factor in the amount of new money being bought into the country by the international property buyer and because they know nothing about real estate they don’t truly understand what international property buyers want to buy and what local people want to buy are completely different in a lot of cases.
THE INTERNATIONAL PROPERTY BUYER
The biggest factor and one that encompasses all three reasons and every winter the numbers of people coming to live full time in Spain is on the increase. The World is a much smaller place and people can now commute to work in London or Dublin. The problem is that even though we have millions of excess homes the reality is that very few of them meet the demands of the international property buyer. This was bought home to us this week when we searched property for a clients with a €500,000 budget and out of 14000 properties only 12 properties actually suited his requirements and only two of them had any discount from the current market value. Unfortunately these so called experts didn’t factor the supply and demand factor into the situation.
What this little exercise tells us is that you only get out of an equation what facts you feed into it and the reality on the ground is nowhere near the doomsday scenario as some people have been led to be believed and our obviously disappointed when they arrive to view properties for sale in Costa del Sol and Spain.
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