Torcal Estates Fincas and Country property - Málaga, Spain

Fincas and Country property - Málaga Property

Nederlandse Versie Nederlandse Versie | Country property for sale in Malaga, Andalucia, Spain Home

News & Views

back to overview

News - May 2007

The Spanish property market in free-fall? Yes or no?

Well, there really is only one question on people’s lips that have any interest in the Spanish property market at the moment, so here at Torcal Estates, we thought we would let you know what we think of the current situation.

As with any hot issue there are many views ranging from “doom and gloom” to “blind optimism”. It tends to depend where your interests lie!

The anarchists are gleefully predicting an enormous crash, which will affect many thousands of foreigners who own a property in Spain, whilst the people with an “interest” in the market such as house builders and estate agents still maintain there is nothing wrong.

As with most situations, the truth sits somewhere in the middle and this calls for moderation from the extremist views – something which fails to sell newspapers and therefore is of little interest to the popular press.

This change in the property market hasn’t just happened in recent weeks. We may be seeing the fallout affect the Spanish Stock market and in particular property related companies, but the news “on the ground” has not changed in the last 18 months – many coastal developments have been struggling to sell for the last two years and already many builders have been discounting prices or offering incentives.

Many of the “shock” headlines, both here and in the UK, could have been written as far back as early 2006 and they would, perhaps, have been more accurate at that time. As with any “scare” within the popular press it will have an affect on some, although this tends to be much shorter lived than we can imagine – remember the egg/salmonella scare?

Inland Andalucia or the Coast – what are the differences?

Buyers buy for many differing reasons, however the main reason for a person buying within Spain, has not, and will not, change. The weather, infrastructure, culture, healthcare and a better lifestyle do not alter with fluctuations within the stock market.

In addition, the property market in rural Spain has never reached the peaks of the “artificial” market along the coast – it is unlikely to be affected as badly and I would suggest that some agents would not actually notice any real change in business levels!

Why is the rural market less affected? Well, primarily, it is driven by the desire for a home rather than an investment – this is very different along the Costa’s.

Secondly, the availability of property is much reduced inland and this maintains a healthy “supply and demand” situation – again, on the coast the level of supply has far outweighed the level of demand in the last 18months.

So, what is in store for the next 12 months? I would suggest that if you own property along the coast then you will experience a drop in value, a stagnant market and a de-motivated estate agent.

If you own a property inland from the coast you need to be realistic with your asking price but we still have many people enquiring about properties from €100,000 to €1million.

If you are looking to buy a property, I would suggest you do your research, consider the reasons why you are buying and simply enjoy your Spanish property for what it offers – a place to stay while you enjoy the massive benefits of living in Spain.

Finally, my advice would be to ignore the Doom Merchants, ignore the Blind Faith Estate Agents and realise that there is a middle ground where you can enjoy a property without needing to generate profit, a middle ground where you can enjoy the Spanish lifestyle and a middle ground where you can still buy a property much more cheaply than the UK!

Copyright 2018 Torcal Estates - All rights reserved under International laws
Valid XHTML 1.0 Transitional   CSS Valid