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All Property Matters Spain – Weekly Review

By October 22, 2019 No Comments

The market is much better than the statistics show

Construction site with crane in Tenerife.
Current figures apparently show that the Spanish property market contracted in the second quarter of this year, after five years of continuous growth. Those statistics, of course, come from notaries and registrars where sales are recorded. However, in many of the Costa areas of Spain, much of the market has been dominated by new build properties. They are being built at rapid pace, and have been marketed and sold by well experienced teams, who are able to bring investors and second homebuyers to sign the private contracts, sometimes even before a brick has been laid. Only when these properties are completed and the first occupation licenses are granted, will the seller and buyer go to the notary and record the sale. It is only at that time that the sale will become part of the statistics. Accordingly, it’s probable that the overall sales have been much stronger than the statistics show, and it will only be in a year or so’s time, when the properties are completed, that the true state of today’s market will be known.
Judging from comments by agencies and lawyers, and the fact that promoters are now offering up to 10% commission on sales plus cash incentives to individual agents, paying for mortgage valuations and offering free furniture packs, sales are slowing down. This is not surprising given the huge amount of properties that have been built in some areas in such a short time. So now may be the time to buy, negotiating hard. But always remember that as soon as you buy, your property becomes a resale and that market is much slower and lower than the slick marketed, well financed first time sales.