Spanish property market report 2015 | Q1
2015 availability remains good in the Spanish market following a strong sales year in 2014 which saw purchase levels at their highest since peak year 2007.
Peak to present discounted prices average 44%, but international brokers, Walker Spain recorded multiple sales with 80% discounts on key ready bank-owned apartments in Q4.
Most purchases in the main Costas were of apartments on urbanisations, asset seizures by banks following developer funding defaults during the recession. These found a stream of international buyers because they are fully legal, key ready, can be inspected in their completed state and often have generous mortgages attached.
Buyers liked the risk-free aspect of key ready, but a growing number purchased resale bank repossession apartments and villas, often in prime locations with all amenities and sea and mountain views.
Ratings agency Fitch forecast that Spanish house prices will bottom out in 2015, depending on how unemployment and mortgage lending evolve. “When house prices reach their lowest point it’s probable they will have fallen 40% in nominal terms since the peak,” say Fitch.
Some banks have raised their asking prices by 10% in recent weeks. Savvy buyers will take this as the signal to secure a bargain before they run-out or cost more.