The Spanish property market starts to come back
The Association of Registrars in Spain has recently reported that there was an increase in property prices for the second quarter of 2014. The increase being close to 1% doesn’t mean that we’re out of the property doldrums, however it can be taken as a slight glimmer of hope on the horizon, especially as we here in Tenerife have had price drops of between 30 – 40% since the start of the crisis.
…price drops of between 30 – 40% in Tenerife
Clearly, Tenerife with its all year round sun hasn’t been the worst hit with price drops, those being the coastal areas of the peninsula where prices have fallen closer to 45%, probably due to the massive over-supply of building and property hitting the market just before the crisis, now standing empty and unsold.
The reported stated that property prices are now at levels not seen since 2003, which bodes well for anyone thinking about buying property. This is borne out by a report from National Statistics Institute which reports that property sales in Spain have increased by over 10% during July 2014 in comparison to the previous year. This year-on-year increase is the fifth consecutive monthly increase in property sales for Spain since the rise started in March of this year.
On the Canary Islands, sales increased by 12.2% during the twelve month period July 2013 to June 2014 in comparison to the same 12 months in the previous year, that is a massive figure and will undoubtedly have an impact on property prices in the near future.
…foreign buyers remain strong
Demand from foreign buyers in Spain remains strong and acted as one of the main drivers for the overall increase in sales, accounting in total for just over 13% of the total sales. With the British buyers topping the table again at just under 16% of total foreign buyers, followed up by the French at marginally over 10%, Russians at just over 8% and the Germans and Belgians representing 7.5% and 7.3% respectively.
…What next for the Canary Islands?
What next for the Canary Islands? Developers have started building again, evidence of this is clear when driving the roads. Lorries topped up with soil, cranes starting to blemish the skyline as new complexes are being built. So, confidence is starting to creep back in I just hope that over building doesn’t cause an excess of unsold property flooding the market and putting an end to the seemingly continued improvement in the property market here.