's Recent Spanish Real Estate Market Review

Top Quote The recent research of the Spanish real estate market has revealed a number of problems that have led to a decline in the total amount of sales in the first half of 2011 though the luxury real estate sector has shown more resilience. End Quote
  • (1888PressRelease) September 15, 2011 - New PropertyWire report published on 5 September, 2011 has revealed that the first half of 2011 was not the best time for Spanish real estate market. The lack of property finance available to local buyers and changes to mortgage taxation have caused an oversupply in some areas of the market and an overall slowdown in Spanish property sales.

    However, the demand for luxury property in Spain is still high thanks to international buyers who acquire high end luxury property in Barcelona, the Costa Brava and Ibiza without mortgage financing,according to an analysis of the Spanish luxury real estate markets by Lucas Fox International.

    Its report on the first two quarters of 2011 also shows that there is an increase in property investment in Spain from Russian, Dutch, and Swiss buyers and investors. And tourism growth in Barcelona, the Costa Brava and Ibiza in 2011 has had a positive impact on demand for vacation rentals.

    'Demand for luxury properties continues apace, mainly driven by international clients from the Eurozone and a high level of demand for sea front villas from buyers from Russia and ex Soviet states,' explains Tom Maidment, director of Lucas Fox Costa Brava.

    Spanish property market is expected to begin pulling out of recession in the second half of the year. To prompt a positive change, a number of measures are being taken. Developers and agents lower prices to reduce excess stock. And the government offers incentives for those looking to buy a home in Spain by reducing the amount of IVA (the equivalent of VAT) payable on new stock properties delivered before the end of 2011 from 8% to 4%. It will let sellers further lower prices and will stimulate buyers. For example, a 200.000 apartment will benefit from approximately 8.000 reduction.

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