NEWS UPDATE | Spanish property prices may have bottomed out after five years of decline that saw 700,000 properties fall into the hands of Spanish banks following the 2007 collapse of the country’s real estate market.
Peak to present average prices have nose-dived by 44%, with the biggest discounts reaching 70% in 2012 as banks were pressured by the European Central Bank to rebalance their books and get rid of under- performing property assets.
The best deal currently is in Costa Calida where 2-bed apartments are offer with 70% discounts and prices starting at EUR 33,600 (GBP 29,000) complete with fitted kitchens and golf and mountain views.
Prices have been tracked in Costa Calida where most deals on offer are for apartments on golf resorts built by once under-pressure developer, Polaris World. Other developers and promoters have built holiday homes on golf courses and in seaside holiday resorts and are offering matching deals.
The average prices in the fast growing Murcia region were tracked as:
2007 EUR 147,700
2008 EUR 145,000
2009 EUR 100,000
2010 EUR 85,000
2011 EUR 66,000
2012 EUR 45,000
2013 EUR 55,000
Spanish property expert, Ben Walker said: “These figures contain the first recorded rise and signal that prices may have bottomed out after years of decline. Sales in the Murcia region have grown in the last two years in line with the heavy discounting by developers and Spanish banks and generous mortgage incentive to tempt buyers from northern Europe.
“More people are viewing and buying already this year and the prices have been edging up as the market strengthened. However, mortgages are becoming restricted because the banks realise apartments costing only EUR 33,000 don’t need hefty loans to help sell them off.”
This is what you get for EUR 33,600 in Costa Calida: a brand new, key ready 2 bedroom apartment with terrace, communal swimming pool, 10-year construction guarantee and golf course and mountain views. Beaches and airports are within 20 minutes.
Those buyers who have sat there watching and waiting for years are now scrambling to put deposits together in fear of missing out once again and not being able to capitalise on huge potential rental income in Summer 2013.
Written by: Kevin Barnett, Spanish Property News