Why are Brits missing out on Spanish property bargains?
At the height of the boom, Brits made up 60 to 70% of foreign property purchases in Spain. By 2011 this British proportion had dropped to 19% with other European investors snapping at their heels. Agent Spanish Hot Properties fears the Brits are missing out.
Nick Stuart, Director of Spanish Hot Properties, gives his opinion, “In 2011 Brits bought only 4,294 of the 22,260 Spanish properties sold to foreigners, a measly 19%, and I fear they’re losing their chance. Likewise the Germans, who once dominated certain locations, have seen their share slip to 8%. I can’t get my head round this as, whilst the Brits and Germans watch Spanish property bargain after Spanish property bargain fly off the shelves, the Scandinavians, Dutch, Belgians and Russians are making hay and snapping up the best value homes we’ve seen in more than a decade.”
Of course there could be several reasons why the frighteners have gone on the Brits and Germans when it comes to Spanish property – not least the looming prospect of an economic bailout.
Nick continues, “Prime Minister Rajoy has implemented a raft of cost cutting procedures from labour reforms to tax hikes. He has also set up a bad bank to swallow up to 90 billion euros-worth of foreclosed assets - a condition of any European bailout. However, despite all this, certain economists in Frankfurt and London still believe that the Spanish economy is to fall off a cliff and we’ll be exiting the euro and paying with pesetas once more. I can’t see this happening, Germany will not allow the Euro or Eurozone to collapse, they will write a bailout cheque. If I am right, then this means that further house price collapse is going to be minimal rather than colossal – and bear in mind the best bargains are already near sold-out.”
Some Brits also cite the exchange rate as another reason to avoid a Spanish property purchase. Correct, at the height of the boom, this time back in 2006, a 200,000 euro apartment would have cost 134,000 GBP - today 160,000 GBP. But, sterling is currently towards the upper end of its five year range versus the euro and today’s 1.25 euro exchange rate is far healthier than the near pound-euro parity suffered in January 2009. What’s more, according to leading economists, those waiting for a return to 1.40 or 1.50 euros to the pound are being completely unrealistic.
Nick finishes, “To use currency as an excuse now is counterproductive. Granted, those in the Eurozone needn’t even consider exchange rates, making a property purchase in Spain much more straightforward, but the Norwegians and Swedes are currently buying in their droves – up 5.9% and 7.1% for 2011 over 2010 respectively – and they’re converting from krone and krona. It just isn’t an excuse. I wish the British buying public could see that they’re missing out and waiting for the right time, a better price, a better exchange rate, a return of the peseta, is futile – and all the while spending time in a country full of sunshine and smiles is passing them by.”
With a website in six languages, English, Spanish, French, Russian, German and Norwegian, Spanish Hot Properties caters for all nationalities – it’s just a shame that the Brits aren’t as dominant as they used to be.
On the Market - Las Mimosas de Puerto Banús
Set in a location that’s hard to beat, these super chic Puerto Banús apartments are truly luxurious and now incredibly affordable. Less than two kilometres, that is to say walking distance, from the world-famous 915-berth marina with its array of superyachts and supercars, passing Ocean Club Marbella, Mistral Beach and Sala Beach (formerly Buddha Beach) on the way, Las Mimosas de Puerto Banús is completely gated and totally private.
The 60 apartments and penthouses are surrounded by large typically Andalucian semi-tropical gardens and each has the “wow” factor. Build quality is high with Siemens appliances in the kitchens, hot and cold air conditioning, underfloor heating, video entry and home automation to control everything from blinds to electrical devices. Within the resort the large freeform outdoor swimming pool is joined by a state-of-the-art gymnasium, Spa, Jacuzzi, sauna and indoor heated swimming pool. Meanwhile the beach is less than 200 metres stroll making Las Mimosas de Puerto Banús ideal as a holiday home or rental investment. Vastly discounted from earlier prices, this is unbeatable value for prime Marbella and an opportunity that won’t come around too often - up to 100% finance is available via the developer.
Prices start from 456,300 euros for a two bedroom apartment with a total built area of 116.04m² including a 16m² terrace plus a garage. This same property was priced at 647,556 euros in 2008 and is therefore discounted by almost 30%.
For more information, visit spanishhotproperties.com.
