Spanish property sales record is likely as international buyers are set to have purchased 45,000 properties in Spain by the end of 2014, with one in five ending up in British hands – an all-time record.
Prices increases over the second half of the year failed to slow the sales growth as foreign buyers’ market share hit a new high of 13% in the third quarter of the year with a year to date 30,708 properties. “As there have been even more sales in the last quarter, we are forecasting a total foreign sales figures of around 45,000 by the end of the year”, said Ben Walker, of international brokers, Walker Property Spain.
The firm reported increased interest in bank-owned key ready bargains on offer at discounts of 40% to 82% in prime locations along the most popular Costas. But for the first time in years more resales than new homes were sold as combined sales for Q3 exceeded the record low of Q4 2013 when the recessional market bottomed out.
Spanish property expert Mark Stücklin said: “Foreign demand has increased while domestic demand continues to shrink. For the last year it has been possible to buy Spanish property for less than it costs to build after banks were forced to take over thousands of new developments.
“Not only are there thousands of newly built properties for sale in Spain below their replacement costs, but there is further room for price reductions in negotiations. It depends on the bank and the property, but some will give further discounts of 10% or more to close a sale.
He believes this is because deep discounts are the only way to sell much of this property, and after seven years of crisis, banks, who are so bad at selling property, have written off enough to be able to sell below replacement costs.
Best Buy bargains are in Andalucía, which includes the Costa del Sol. The region saw the most sales with 16,006 transactions, followed by Valencia with 12,189, Catalonia 11,975 and Madrid 10,883.
• Figures from the Spanish Property Registrars, whose Q4 2014 index is expected next month.
:: Spanish Property News | by Kevin Barnett, international property writer