The Property Market in Spain
Given the global impact of the ‘credit crunch’, it’s no surprise that property prices around the world are showing dramatic reductions. Indeed in Spain, where over-development has already resulted in supply out-stripping demand, these additional pressures have depressed the market still further.
This has resulted in fewer buyers, who are more demanding and know exactly what they want. As a consequence, developers have been forced to take notice and deliver higher standards of design, build quality and finish. All of which means that there are some truly fabulous properties about to come onto the market at very competitive prices. Watch this space!
The Property Market in La Manga Club
Being based at the world famous La Manga Club, we are ideally placed to monitor trends in what is undoubtedly something of a ‘property micro-climate’. Yes, there has been a slowing down in sales at the Club, but properties are still selling - particularly those who are offered for sale in Sterling (often the case given British owners predominate). Why? Because this takes away the complications associated with converting euros to pounds and the worry that goes with rapidly changing exchange rates. In short, the buying decision at La Manga Club is less stressful and comes down to just two factors, namely location and price.
Pricing Your Property to Sell
Of course, it is crucially important in a depressed market to be realistic about sale prices, and those properties which are sensibly priced will offer vendors the best possible chance of selling. Conversely, buyers will recognise that this is an opportunity to get excellent value for money and, in some instances, real bargains. Therefore, now may well be one of the best times in many years to buy your dream overseas home, but remember to take advantage of a depressed market you have to be in it. Delay and the opportunity may pass you by!
Learning from the Past, Looking at the Future
Ever increasing prices and upward growth are unsustainable. Instead, all markets, including property, move through cycles of expansion and contraction – that is the real world. The challenge is how to anticipate these cycles, so that positive opportunities result.
'The Best Time to Invest is When Things Seem to be at Their Lowest Point'
Whilst the current economic situation is extremely fluid and makes hasty decisions, even those based on rational judgement, quite dangerous, deflationary factors – e.g. falling oil, wholesale food and property prices – are in place. As a result, expert opinion is suggesting that interest rates could fall by at least 2% over the next year and whilst there are no guarantees, and the timing is difficult to predict with certainty, this may produce a bounce in the stock market, which could be big and reward those who get in early. However, those who wait until the market stabilises may find the penalty for their caution is an entry price which is 30 to 40% higher!
Relating these points to property sales, in the current market it is important to recognise that even rational and well-informed buying decisions are risky. However, those buyers who do their homework, take expert advice and seek out real value in ‘property micro-markets’ with a proven track record of quality and price stability, may lead to owning the home of your dreams at a very affordable price. As Sir John Templeton, founder of the Templeton Investment house, said “The best time to invest is when things seem to be at their most pessimistic”. A difficult concept to take on board, but as evidenced by George Soros, historically one which has proven to be correct time and time again.
La Manga Club, a Safe Place to Live and Play
La Manga Club is also one of the safest places in Spain to own a property. It offers 24/7 security, a host of leisure activities for all ages and year round sunshine. Last Christmas Day we played golf in shorts and tee shirts, which can’t be bad! The Club is a wonderful, friendly community, which has been built up over many years, as different nationalities and cultures have integrated and grown closer. It’s a fine example of a genuine European Community, one which doesn’t need rules from Brussels to make things happen!! |
