Home sales, mortgage approvals, and consumer confidence are all recovering, but there’s still the problem of the glut concentrated in areas with low demand, says the real estate consultancy Acuña y Asociados in a new report. Including bank repossessions, the Spanish property market still has 1.36 million empty properties looking for a buyer, down from the 1.7 million in 2010.
Spanish property prices rose nationally by 2.4% last year, although the actual amount depended on the province and local markets. For example, prices fell in 25 out of Spain’s 52 provinces, where the recovery is yet to materialise due to weak demand and the large number of homes on the market.
Yet experts predict that home inventories will run short first in Madrid, Barcelona, the Balearics, the Canaries and Malaga. In these areas, the new-build stock of homes will run out first, in less than three years, as will be the case in most resorts on the Spanish coast.
House prices have recovery fastest in large cities and in coastal areas such as the Balearics, Barcelona, Madrid, Malaga and the Canaries. Prices here are rising on average between 3.8% and 5.6%. At the other end of the scale, the largest price drops took place in Soria, Palencia, Álava, Orense and Navarra with decreases between 1.9% and 3.5%.
Low population growth will lead to a gradual fall in demand from 2020 onwards. Until then, pent up demand that simmered during the property crisis will cause sales to rise. Some 433,000 properties will be sold by the end of this year, up 15% on last year, but growth will be more moderate until 2019.
Here there are some properties from 191.000€ to 204.000€ in Spain:
Article seen in www.spanishpropertyinsight.com