The only people reducing property costs on the Costa del Sol today are the banks with their less-than-favourable repossession stock … this will follow to other areas by mid 2013.
Also to take note some developers are reducing costs … the ones “who have properties that actually nobody wishes to purchase” (old and tired stock).
On the other side, the developers of a luxury golf resort near to Marbella has actually pledged “he will place costs up by 8 %” from 1 January 2013 having sold out all but 25 of the entire 267 properties. They could nonetheless reevaluate if the Spanish government goes through with its policy to raise brand-new development VAT from 4 % to 10 % following year.
VAT on brand-new constructs was temporary slashed from 8 % to 4 % by the previous Spanish government in mid 2011. When Rajoy presumed workplace in December that exact same year, he expanded the decrease through to the end of 2012. The policy may have worked, sales figures for brand-new developments and new build properties are up 3 % every year, and numerous commentators, agents and property experts believe that the Prime Minister will not wish to stall this recovery.
The general talk on street with local / national banks, attorneys and various other specialists — think Rajoy would be so foolish about raise VAT up to the newly raised lower rate of 10 %. An additional 6 % would add 15,000 euros in costs for a home priced at 250,000 euros– hard to swallow at a time when the Spanish construction business is on its knees. The Government understands that it has to remove real estate stock prior to the construction market could pick up and I think that it will certainly do anything to help facilitate the sale of new constructs from developers or the banks. Nonetheless Rajoy will certainly no doubt wait till the end of December before he shows his hand so as not to derail the current ‘panic’ purchasing.”
In regards to the resale market, distressed sellers in Marbella (Costa del Sol) are coming to be less and further in between. Some property price values are still negotiable, however numerous are not as the local market gains self-confidence, and are realistically priced to sell … The weakening euro is also a positive impact. But once more it appears that the Brits are still missing the point and missing out on superbly priced properties.
The Belgians, Dutch, Russians, Scandinavians, are hot on sales as they understand that rates are at their most affordable and represent unbelievable value for money — even on an international scale.
Example for a two bedroom, 2 bathroom apartments selling for 250,000 euros today were priced at half a million at their peak, really lots of properties are half price, and I don’t think the Brits quite see that. They used to dominate the market, making 60 to 70 % of foreign acquisitions, but were responsible for just 19 % of sales in 2011. At the same time purchases by Russians skyrocketed almost 28 % from 2010 to 2011 and Chinese acquisitions by 7 %. No wonder Spain is planning to provide residency permits to non-EU investors in return for the acquisition of a residence.”
New Build sales in Costa Blanca are still the popular choice for Europeans — like we mention in the above comments “old, tired stock” is not selling – new build are by far the strongest sales for the region.
// CB[ts_fab ]