Buying a House in Spain
There seems to be a rumour that the house market in Spain is dead, that rumour is bogus. The general consensus amongst “The Experts” is that houses are still selling. In recent years property values were leaping around the 25 to 30 per cent a year figure. It now appears that this trend has cooled at least for the next 12 months to 8 to 10 per cent. This is still a good return for your initial investment. Hence the schadenfreude and visible fear among the nervous investors who feel their property portfolios may have to be shelved.
Let us not forget that there is no way you would get that sort of return from the banks over the same period. An annual growth rate of around 10 per cent is excellent, so there is really no need to push the panic button just yet.
These growth rate figures and projections are for the whole of Spain, whilst most property, particularly those aimed at the foreign market, is situated on the costas.
It is true that the market around Marbella has suffered severely due to the problems with the reported corruption scandals the Costa del Sol market is no longer the force that is was! Supply has definitely outstripped demand so this will have a negative effect on the housing market. The lower growth around this area on Spain’s long east coast have definitely dragged down the overall market figure.
It is now time to look further a field, particularly on the west coast of Spain, around the area of the Costa de la Luz. Why not visit this area and look at the many properties for sale whilst staying in a self catering apartment to give you more flexibility in your house hunting.
www.casa-hibisca.com/jerez.html
