Finally positive signs that property prices are recovering in the Costa Del Sol

Finally positive signs that property prices are recovering in the Costa Del Sol

Posted by on Jan 21, 2017 in News

Cranes on Building Site   The cranes that were previously left standing looking stark and lifeless because there was nowhere to put them are finally moving again on the Costa Del Sol and elsewhere in Spain.   This is something that has not happened for many years and is a clear sign that after years of drought in the property market finally money is coming back into the area and oiling the cogs again.   Prices have not rallied much, but with banks reporting significantly increased mortgage activity and sales on second hand properties slowly increasing, this must be good news for the Spanish economy.

The only area that has not seen significant activity yet is sales of New Properties but remember there are nearly 800,000 empty new properties left to fill or will many of these fall into decline and never be sold.   Too many are in row after row with no real character and not even that close to the sea so how difficult will it be to offload them.

Prior to 2007 many developers thought that every foreigner would want a property on the Costas regardless of its location !  How wrong were they for as soon as the banking crisis hit hard and Economies collapsed that soon put paid to that theory.   Those properties lie empty and dilapidated and an eyesore on the landscape!  The Banks are still struggling to sell them off and have a long way to go.

Brexit has definitely slowed the market and the Brits are hesitating and the GBP/ Euro exchange rate is not helping !   Theresa May needs to get moving with Article 50 and Trade Issues to get some confidence back into the Uk economy and foreign trade and then maybe we will see a recovery, but how long will that be….another year or 2 years ? Will the future French and Italian elections destabilise the Euro !  We all need stability in the markets, solid growth in all European economies and then maybe a proper recovery will ensue.

Despite all the issues with the EU perhaps now is the time to consider buying your property in Spain.