Spanish Property Market Becoming Very Segmented
19 Dec 2010
It seems there are now huge differences in prices in different area of Spain and according to Nick Stuart Managing Director of Spanish Hot Properties this is only going to get more exaggerated as the Spanish property market comes out of recession.
After spending a week in Mallorca, Costa Blanca, Costa Calida and Costa del Sol Nick believes he can see three very distinct markets emerging. “Well this year Mallorca has supported our whole business where we have completed a substantial amount of property sales at an average sale of over €600,000 and its clear from my experience and recent visits to the Island that Mallorca is very much the London of the Spanish real estate market proved by recent price rises. Now if you compare that with Costa del Sol which is similar in that it attracts a lot of international people with money the average enquiry is about €250,000 and the buyers here are those looking to buy to live or with a view to living here in the future ie no longer a holiday home market like it used to be. Then if go to Costa Calida and Costa Blanca the property sales are very much aimed at the holiday home market but at great prices where you can buy a 68 meter built apartment for well under €100,000 but the reality is that they make great holiday apartments but you couldn’t live in them fulltime. So just in these 3 areas you can see the huge differences of the market here in Spain” explained Nick.
As for the future that will become very interesting as different property markets in Spain do in different directions and the different views on how this will impact the market differ by who you talk to but Nick reckons “that in two year’s time there will be a very stark choice between holiday apartments & homes to live in” obviously only time will tell if that prediction comes true.
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