Costa del Sol's Property Specialists

31 Oct

Signs of Improvement in the Spanish Property Market

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Improvement in the Spanish Property Market

Recent statistics have shown that the Spanish property market has grown by 16% in February compared to the same month last year. Excluding social housing, there were 35,720 homes sales in February with 21,368 of them being new builds and the balance of 19,665 as re-sales.

After much speculation by local businesses and media, many believe the property market has reached the bottom and is starting to recover after two years of decline.

Despite the erratic improvement in the Spanish property market, we are some way off the volume of sales that were experienced in 2007.

On further investigations, and without stretching the imagination, Catalonia (43%) and Madrid (36%) were the two main regions that benefited from the majority of property transactions. In Malaga and Alicante saw year on year increases of 3% and 3.8% respectively and Andalucia saw a 7% rise. Granada and Cadiz were both up 14% and Valencia saw 23% growth.

In southern Spain and in particular Marbella, there were positive signs with the local tax office revealing that 2,499 properties were sold within the first three months of 2010, some 200% increase compared to the same period in 2009, where only 820 properties were sold. In a local interview, the Mayor of Marbella, Angeles Muñoz said Marbella will be the first out of the crisis and is steadily recovering from not only the fall out in the property market, but also illegal property scandals. In addition Angeles Muñoz has stated that the new PGOU will come into effect this month, which will legalise some 16,000 properties thus enabling owners to sell them, raise a mortgage or use them as an asset.

Only time will tell how fast the property market will recover in Spain, with aspects such as bank lending, bank debts and a general glut of newly built properties for sale as major issues, Spain needs to look to its EU neighbours for help and support over the coming period.