Everyone is talking about Spain at the moment, often for the wrong reasons, if it isn’t the general strike it’s the bailout and this is making developers very nervous.
(PRWEB UK) 21 November 2012
Commenting on this news, Loxley McKenzie, Managing director of Colordarcy said, “The Spanish government appear to be pulling out all the stops to ensure that it can draw a line under the ongoing crisis in the Spanish property market. This is having the effect of inspiring confidence amongst investors who might previously have been wary of the situation in Spain.”
Measures introduced to try to bolster the ailing property market have included VAT reductions and this month the Spanish Trade Minister said in an article published in the Times that those buying a property in Spain for more than €160,000 should receive a residency permit. This was in a bid to attract more interest from investors outside Europe.
According to analysts at Colordarcy.com a day of reckoning is coming for Spanish property developers who continue to value their properties higher than the market will currently take. Many could be forced into liquidation if the country's "bad bank" triggers a property sell-off.
What is tough medicine for the banks may be encouraging news for those considering a Spanish holiday property. After another 12.5 percent year-on-year fall in 2012 and a cumulative 33.2% drop in values since December 2007 (Source IMIE General Index), Spanish property is looking an attractive option for an investor prepared to wait for recovery.
McKenzie added, “Everyone is talking about Spain at the moment, often for the wrong reasons, if it isn’t the general strike it’s the bailout and this is making developers very nervous. According to Jones Lang LaSalle, more than half of all Spanish property developers may be in danger.
The main issue for investors is they have already sensed that developers are trying to hang on to their Spanish coast properties until they get the price they are looking for. What we are now seeing is their willingness to agree to the kind of offers that will at least allow them to pay off their bank loans.
This is actually the time when property investors will get the best deals as many investors are finding out. The best investors know that eventually things will turn around, they know the property cycle will start again at some point so they don’t worry themselves with short term thinking.”
Colordarcy highlights that sales of properties in the Costa Del Sol are reported to be up 52% according in 2012 (Source: Global Property Guide).
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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