Property Sales In Spain Still Growing – Just!
According to all property analysts, property sales growth in Spain is slowing. This has been the trend for several months now. Murcia region managed a 3% increase; considerably down on the healthy 50% this time last year, but, to put this into perspective, some of the most popular areas of Spain are down by 10% and 20% (Balearics and Canaries). The National Average is a 2% increase. The primary reason for this slowdown of property sales across virtually the whole of Europe is an almost impending, new recession. Economists are practically unanimous in the prediction of a major contraction – mostly attributed to the major economies like; Germany, France, Italy and Benelux countries suffering major industrial production difficulties relating to vehicle manufacturing, steel prices and high energy costs due to climate change taxes and carbon emissions.
Spanish Property Prices
In a recent article on Spanish Property Wire – there was a headline claiming an increase in Spanish property prices of 14%! To us this appeared quite extraordinary and so it turned out to be! It was measuring the sales of new-build property prices (mainly in the Costa del Sol). As we have explained previously, new-build homes cost around 20% more than comparable resale properties; typically because the prices are inflated by around 10% for agents’ commission, plus the exorbitant costs of planning/building permits and builders’ guarantees. After digging a little deeper, the average price increase across the whole of Spain is negligible, if anything at all.
On A Local Level
We promised in last month’s column to discuss how you can overcome minor illegalities in your property and its title deed prior to putting it on the market. We had many emails from vendors outlining their difficulties and subsequent loss of a sale. There were some very sad examples and some tales of ridiculous demands from architects and lawyers to modify these simple flaws; in fact, so much so that I have decided to devote the whole of next month’s column to addressing these issues with simple, cost effective and constructive solutions.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173