The statistics are reflecting the shortage of suitable properties, as agents are in the frustrating struggle of finding properties for sale that meet their buyers demands.
Survey Spain’s quarterly record of the difference between asking price and eventual sale price shows the trend. Reliably sourced from actual buyers for whom we have carried out pre-acquisition building condition surveys/home inspections, the last 4 quarters show the effects of demand being stronger than supply, with sellers being able to refuse to negotiate their price, unless the buyer can show a compelling defect in the building or paperwork being a reason for them to do so.
- 3rd Quarter 2021 – 3 months before October 2021 – average discount on asking price – 11.49%
- 4th Quarter 2021 – 3 months before January 2022 – average discount on asking price – 9.39%
- 1st Quarter 2021 – 3 months before April 2022 – average discount on asking price – 5.71%
- 2nd Quarter 2021 – 3 months before July 2022 – average discount on asking price – 4.63%
Modern, ‘cubic’ villas or apartments, with floor to ceiling window space to take advantage of great views, and having excellent energy ratings, are the most demanded. Sellers of traditional style properties are finding they are not benefitting from the rise in values, as most buyers look at them as needing considerable modification to provide the light, style and energy rating they want.
Only time will tell whether the traditional Andaluz style, with pitched roof and smaller windows, can be adapted to have less maintenance and energy costs, than the hopefully better standard of build of the new designs. Some new builds are very good and will last well, but unfortunately, our ‘snagging’ surveys of many new properties are finding the quality of build construction, supervision and even design, are just not up to the standard required for this sometimes harsh environment and demanding buyer. And it’s unlikely to get better in the short-term.
See related blog Build Costs are Going through the Roof – Survey Spain