Spanish property price increases during the last quarter of rising sales in 2014 are forecast to continue through 2015. It could be the “last year for massive discounts”, says one leading broker.
In 2014 pundits logged Spanish property price increases from banks and developers, and warned it could be the “last year for massive discounts”.
There has been strong year on year property sales growth as banks cleared their books of stock repossessed from troubled developers. The stronger Spanish banking sector has brought easier mortgages for domestic and international buyers tempted by record low prices on villas and apartments in favourite Costas.
Some banks, boosted by improved sales and market confidence increased the prices and one developer in the Costa del Sol scrapped a 30% discount phase one launch offer when all 42 apartments sold within weeks.
The improvements in finance, granting of mortgages and the return of foreign investors has boost the recovery in domestic demand and spurred developers to start construction of new homes. Property sales in Spain are reported to be up again
A recent report by independent financial advisors, Arcano says Spain’s real estate and construction sectors “will be the engines of economic growth in 2015 and resurgence in the price of housing in Spain”.
Prices of 39,000 developer repossessed properties being released on the market in January by Sareb, Spain’s “Bad Bank” are expected to be 15% above “book” value to which selling costs will be added. International brokers, Walker Property Spain and carefully selected Spanish vendors will be offering the stock with low deposits and generous mortgage options.
A spokesman said: “Bad bank bargains will be in addition to those from banking partners that have been selling steadily for the 15 months. We expect 2015 will be the last year for the massive discounts enjoyed by our international buyers – as the stock runs down, the prices will go up.
“Developers are restarting mothballed projects in prime areas of the Costa del Sol and Costa Blanca with launch prices set to increase with subsequent phases.”
Best investor buy in Spain Q1 2015:
Current best buys include key ready apartments in the Sotogrande area of the Costa del Sol that come with 113% mortgages, requiring a refundable €6,000 to secure. Note: The incredibly attractive mortgage interest rate with these developments:
Euribor + 1.25% for first 2 years (so that’s only 1.5% currently)
Euribor + 1.75% thereafter up to 30 years (possibly 40 years) to max age 70
:: Spanish Property News | by Kevin Barnett | International property writer