Friday, July 2, 2010

18-month high for volume of sales in the property market

There is increased optimism that property sales will continue to improve across Spain in the future.

Data for June from the College of Registrars showed that 7.04 per cent growth was witnessed in the Q1 when weighed up with the same period 12 months previous. Sales also improved by 16.28 per cent over the first three months of this year in comparison to the final quarter of 2009. These figures represent an 18-month high for volume of sales in the Spanish property market.

Chris Mercer, Director of Costa Calida based estate agents Mercers, is sure that the recent positive signs in the market can continue through the summer and into the rest of the year. The local market has experienced “a quite impressive increase of 157% for Q1 2010 over Q1 2009. The increase in the sterling/euro exchange rate also has made properties within the Euro zone an increasingly more attractive prospect for euro buyers, and explains the surge in interest in Spanish real estate.

According to the Spanish statistics office (INE), sales of Spanish property were up 9% this March compared to last March. Overseas buyers are thought to be behind a substantial part of the recovery, with agents and developers in the Marbella property market reporting increases of 150% over last year in sales to foreigners. Industry experts said that buyers are only buying property that is discounted, either the price represents a 20% drop on the peak, or the developer has marked the prices down by 20-40%, either way the reduction is apparently necessary as an aide to buyer confidence.