Murcia Region Property Sales and Prices Still Increasing!
The Spanish property market is definitely in a decline! All the data for quarter three is in and every one of the official bodies concur – which is a first! Right across Spain, sales have been slowing and price increases modest and some areas showing a big decline. Murcia is one of the very few regions that is holding out on both fronts, with a 2% increase in both sales and prices. There is, however, an underlying pessimism throughout the property industry regarding future performances.
The world has always suffered from economic cycles – boom and bust – as we usually call it. We’ve had a mini boom since 2011, but every 8-10 years brings about an adjustment as markets overheat, or world events like war, trade wars or greed in the financial markets creates a bubble.
Recent gains in the value of the UK pound (mostly attributed to the New Brexit Deal) have brought a surge in enquiries from UK potential buyers, but not from other Northern European nationalities that operate inside the Eurozone.
Overseas buyers (mostly European) have increased from 2011 right up until the middle part of this year. To service that demand, there has been a large increase in Northern European Estate Agents opening up in Spain, whilst more established agents have expanded. Even local Spanish estate agents (inmobiliarias) have benefitted from foreign buyers, just like the boom times in the early 2000’s.
As the Spanish property market contracts, many of these agents will have to clip their wings. Downsizing is already happening in the popular Costas. As Estate Agents begin to suffer, the price war begins. Spanish property owners will benefit greatly from reduced fees and now is the time to take advantage of current trading conditions. If you’re considering putting your property on the market, you will find most agent’s fees are negotiable. If you drive a hard bargain, it’s possible to agree a sales fee around 50% below the standard estate agent’s commission that prevailed 4 or 5 years ago.
How is BREXIT Effecting the Market?
This is the most common question I receive from the many email enquiries in response to my monthly Costa Cálida Chronicle column. There is only one answer and that is ‘very little’. Occasionally a buyer will ask “How will things change if Brexit happens?”, or a vendor will ask “Is the market depressed because of Brexit?” – In each case the answer is always “Very little!” It’s a true and honest answer as we see and experience it.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173