International Buyers Encouraged by Low Priced Spanish Real Estate
The decline of the British pound has created some distress for British investors, but interest in Spanish Property has hardly waned, according to Mark Stucklin, an industry expert. His opinion is encouraged partly by the continually falling prices that make luxury accommodations a real steal in the current market.
It’s not just UK nationals that are snapping up Spanish villas these days, either. International Business Times and The National have reported that Chinese investors, Norwegians, Swedes and other Europeans are all showing increased interest in Spanish Real Estate, assisting the struggling country’s economy with an influx of currency. Buyers are taking advantage of the housing glut with distressed sales, reduced prices and attractive financing options creating the best opportunity many buyers are likely to find anywhere for luxury homes, vacation condos or even primary residences.
Foreign buyers are increasingly likely to grab up Spanish bargain properties as data shows that prices in the country continued to fall in July.
Though traditional tourist areas suffered the largest declines, and some of those more than others, the General Spanish Real Estate Market Index (IMIE General) showed that the country experienced a year-on-year decline of 6.4%. Between July 2010 and July 2011, prices of property all along the coast fell by 9.5%. House prices have been falling throughout Spain for twelve continuous quarters now. That’s a total of three years.
The Balearic and Canary Islands fared somewhat better, where property values fell by just 2.5% in the same period. Stephen Dight, managing director of Mallorca Sotheby's International Realty, speculated that the Islands’ more favorable performance was due to the smaller number of homes present overall, which would not allow for the same magnitude of disparity between supply and demand as exists on the mainland.
Director James Dearsley of Atlas International believes that prices in the country’s real estate market have perhaps finally bottomed out and that potential buyers are beginning to recognize that fact. He says that the market is ripe for the return of investors who anticipate favorable and large returns on both capital and rental investment perspectives. Dearsley is responsible for Atlas International’s sales and marketing strategies both at home in the UK and abroad, overseeing sales networks and marketing strategies in 20 countries.
Late 2010 was perhaps a better time to buy than early 2011 has been, however, due to the end of governmental tax cuts on the sale of new, previously unsold homes. The government’s next move to encourage further sales remains to be seen.
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