The Spanish newspaper, El Pais, has dared to use the cliche “the green shoots of recovery” to describe the Spanish Property Market.
This is always slightly worrying, as it usually sounds like a desperate politician, or an estate agent, bigging up the state of the market and pretending there are no more inherent problems.
They argue that Spain offers, sun, beaches and cheap properties and today’s buyer is a cash buyer.
The agencies on the street are registering some activity, from Brits, Germans, Scandinavies and new nationalities, Belgians Russians and Algerians.
Institutional investors are waiting for “demolition prices”, that’s considered to be 70% off the book values, compared to 50% discount seen today.
A couple of other interesting points include the fact that 350,000 properties changed hands last year in Spain, down from 750,000 in the peak of 2007, but still respectable.
Mallorca property is still popular with the Germans, and now holds some 11% of its total holiday property stock.
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