UPDATE: 2014 – Also a very good year? The Spanish property market in 2013 soared back to almost its highest level of 2007, but with peak to present prices remaining at an average 44% lower, buyers who took the plunge in recent months probably got the best value buys ever for a home in Spain.
The best bank key ready deal came with 18 spacious 3-bed, 3-bath apartments reduced from the developer price of €1.1M to just over €200,000, an average discount of 83% over the 60 days it took for international buyers to believe the broker’s claim and dive in. The last sale was registered on 13 December and a delighted Scandinavian buyer spent €214,500 for a wonderful Christmas in the sun – in a place in other owners had paid over a million euros for…
There are similar bank deals lined up already for 2014 in Fuerteventura and Costa del Sol and international brokers Walker Property Spain will bring the best offerings from partner banks and the increasing number of developers starting new developments and competing with the banks by selling off their remaining key ready villas and apartments with higher specs and lower prices.
The buyers are most likely to be from around the world as more Americans, Chinese, Indian, Russians and Scandinavians are on waitlists for the first come, first served bargains in all second homes areas of mainland Spain and the Balearic and Canary Islands.
Prices to remain low in first quarter of 2014
Despite the growing demand, prices are likely to remain low in the first quarter of 2014 because the Spanish banks are still clearing their distressed property stock and rebalancing the books as part of the EU-dictated bail-out. A couple of banks edged up prices in the last quarter of 2013, matched by others who made further reductions on the last few homes remaining on certain developments. One bank tried to stabilise demand by having sealed bid auctions, but as this can force-up prices, we kept our buyers well away.
There is a definite window to buy for Q1, but after that who knows? Prices may drop further, or greater demand may force them up. History shows this is usually the case where demand exceeds supply. This is not the case just yet, but if I was a serious buyer, I would not still be sitting on my hands much after Easter 2014.
Author: Kevin Barnett, international property writer.