Spanish Property Market Report | Q1 2016 shows Spanish homes still undervalued
Spanish property market report shows prices in Spain are heading upwards or, in some areas, are in decline. But a recent survey claims that based on historical averages, Spanish homes still remain undervalued compared with other countries.
In emerging regions of Murcia and Almeria the low valuations are due to oversupply. In more popular Costas there is already a correction in prices as US and South American investment groups snap-up completed housing stock and remarket upgraded apartments at increased prices.
The OECD real estate markets report claims Spanish prices are 26% undervalued, but demand and international investor intervention is pushing up prices. In some prime locations there are shortages of quality homes – leading to new developments being started to help fill the supply and demand gap.
Spain’s leading valuations companies show new build prices rose by 3% in 2015 and there was a national price increase of 1% – following seven recessional years of falls.
Best bargains Costas Calida and Almeria
The best bargains for 2016 can be found in Murcia and Almeria where house prices dropped a further 4.3% and 5% respectively last year. With sales already running at record levels the best deals can be found on golf resorts inland from the Mar Menor where there are still bank bargains, some carrying 100% mortgages.
Valuation company, Tinsa shows prices rose 10.7% in the Costa Brava and Mallorca and Ibiza were up 2.7%. Costa Azahar +2.1%, Costa de la Luz +0.9%, Tenerife and Costa Blanca showed a 0.3% increase.
Locations to watch in 2016: Fuerteventura and Murcia where there are still brand-new bank-owned key ready apartments and villas at sub EUR 100,000 prices.
Spanish property market report Q1 2016 update | Author: Walker Property Spain